Managing multifamily properties is generally classified as “broker activity” in most states, which falls under the scope of real estate broker licensing. Although limited exceptions may apply, these services typically require a licensed real estate broker. As a result, property management firms must designate a licensed broker to serve as the firm’s managing or responsible broker to ensure regulatory compliance.
Because requirements vary by state, strict compliance is essential. Failure to comply can lead to misdemeanor charges, fines, cease-and-desist orders, and potential defaults under management agreements. In certain states, violations may even rise to the level of a felony!
Our approach to this necessary evil is straightforward. We manage the licensing and administrative requirements so you can stay focused on operating your properties and serving your tenants and investors.
While regulatory compliance ultimately remains your responsibility, we provide the structure, tools, and guidance needed to meet all applicable laws and licensing standards. We do not participate in the day-to-day operation of your business or decision-making. Instead, we ensure you have the proper framework in place to remain compliant in every state where you operate.
Tom Mangum, Managing Partner of Lunox Advisors, has been a licensed real estate broker since 2012 and holds licenses in multiple states. He brings over 25 years of hands-on experience in owning, financing, acquiring, selling, and managing multifamily properties, including affordable housing and Low-Income Housing Tax Credit (LIHTC) communities. This blend of operational experience and regulatory compliance expertise gives Tom a practical understanding of both property management and complex licensing requirements. As a result, he helps firms stay compliant efficiently and confidently — reducing risk, minimizing surprises, and allowing clients to focus on their core competencies.