What can a co-host do without a license?

The Commission often receives calls from both brokers and unlicensed individuals who want to know what activities require licensure when renting property on AirBnB, VRBO, and other similar online platforms.

Online rental platforms were created to allow an owner to self-manage short term rentals in a convenient and accessible manner.  Sites permit licensees to list rentals as property managers, but they also allow for “Co-Hosts” to assist in some of the hands-on tasks that an owner may not be able to perform. The question of the day is, when does an unlicensed person cross the line into brokerage territory where a license would be required?

North Carolina General Statute § 93A-2(a) states that an active real estate license is required in order to:

• lease or offer to lease, or rent or offer to rent any real property,
• for others,
• for compensation. 

A few rules to keep in mind: Commission Rule 58A. 0110 states that a Broker in Charge is responsible for the conduct of advertising by or in the name of a firm.  Commission Rule 58A. 0104 requires a property management agreement to be fully executed prior to providing property management services. 

Unlicensed individuals who wish to assist owners on these platforms may perform the following services without having a license:

• Obtain keys from owners and provide them to renters
• Place “For Rent” signs on properties at the direction of a broker or the owner
• Report and coordinate minor repairs at the direction of a broker or an owner
• Coordinate move-ins and move-outs of renters
• Coordinate or perform cleaning services
• Replenish supplies
• Be a point-of-contact for renters for issues that arise during a tenancy

A license is required for the following:

• Preparing information to be placed in promotional material or advertisements
• Placing ads
• Discussing management agreements or leases with owners or tenants
• Negotiating rents
• Handling any money belonging to others.

An unlicensed Host should not be paid per booking and no fees can be tied to a booking, cannot advertise on a website even if it links to a different platform, and cannot enter into a Property Management Agreement with an owner of a rental property.  Unlicensed individuals also cannot pay or be paid any referral or finders fees for referring potential tenants or owners.