The Fal licence for property management: who needs one

If you manage property owned by someone else for a fee, that is a licensed activity. And it is not the same licence a real-estate broker holds, which is the confusion that gets people into trouble.

This guide sets out the difference, who needs which licence, and what issuing one requires, based on what the Real Estate General Authority publishes.

Brokerage versus property management

REGA issues the Fal licence for several real-estate activities. They are separate, and one does not substitute for another:

Brokerage and marketing (activity 682010). Acting between a seller and buyer, or a landlord and tenant, for a commission. Available to individuals and establishments.

Property management (activity 682020). Taking on the financial and administrative affairs of a property on behalf of its owner. Available to establishments only, not individuals.

The practical difference: a brokerage licence does not cover managing other people's property. If you are a broker and you start collecting rent and running maintenance for an owner in exchange for a percentage, you have moved into a different activity that needs its own licence.

Who needs the property-management licence

You need it if you are an establishment managing property owned by others for a fee: collecting rent, managing contracts, handling maintenance, and providing statements to the owner.

You do not need it if you manage your own property. An owner letting their own apartments, and a company operating buildings it owns, are not carrying on the activity of managing others' property.

The critical point: the licence is for establishments, not individuals. A person managing property for relatives or acquaintances for a monthly sum cannot obtain it as an individual. They need an establishment with a commercial registration.

Issuing requirements

Per what REGA publishes, the Fal licence for property management requires:

• A valid commercial registration carrying activity 682020 (property management for a commission).
• The responsible manager must complete the qualification course for property management.
• The responsible manager must be of full legal capacity and not convicted of an offence involving dishonesty.

The licence is annual and renewed yearly, and carries a published annual fee. Check the current amount at source, because fees change.

Fees and conditions change, and this guide is not an official source. Verify with REGA before taking any step or incurring any cost.

The practical order before applying

The common mistake is applying before the commercial registration is ready. The order that saves time:

1. Check the activity on the commercial registration. If 682020 is not listed, add it first. Applying with a registration that lacks the correct activity will not meet the condition.
2. Identify the responsible manager, and confirm they meet the capacity and record conditions.
3. Complete the qualification course for the responsible manager.
4. Submit the application through REGA's channels.
5. Put the renewal in your calendar. The licence is annual, and letting it lapse halts an operating business.

Point five deserves more attention than it usually gets: an annual licence means a recurring date, and that is exactly the kind of date that gets forgotten, like lease renewal dates.

After licensing: what changes in your operation

Licensing changes your operational obligations, not just your paperwork:

Separating owners' money. What you collect on behalf of an owner is not your income. Your income is your fee or percentage. Mixing the two in one account turns "what do I owe each owner" into guesswork.

A statement per owner. Each owner needs a statement covering only their properties: what was collected, what was spent, what remains. That is a daily operational requirement, not an annual report.

A record that can be reviewed. Documented contracts, payment schedules, a collection log, maintenance orders and their costs. An office that cannot produce these quickly is in a weak position in any dispute with an owner.

Those three requirements are why a management office needs a system far earlier than an individual owner does. An owner needs organisation for themselves. An office needs separation, permissions and accountability. Detail in how to choose property management software.

In short

Brokerage and property management are different activities with different licences. Managing others' property for a fee needs the Fal licence for property management, which is for establishments only, and requires a commercial registration with activity 682020 and a qualified responsible manager, and it is annual with a fee published by REGA.

Managing your own property needs none of this.

Verify the figures and conditions directly with REGA, because they change.

For the wider context: the property management guide.