Under Indiana law, no person may manage, lease or rent real estate for compensation without a real estate broker’s license. Four statutory exceptions substantially reduce its effect. First, no license is necessary for a regular, full-time, salaried employee of a person who owns or has leased the real estate. (Ind. Code § 25-34.1-3-2(b)(9).) That is, if the rental agent is a regular, full-time employee of the owner, then neither the owner nor the rental agent is required to be licensed. Second, the owner of the real estate is not required to hold a broker’s license. (Ind. Code § 25-34.1-3-2(b)(8).) Third, no license is necessary for a person employed or supervised by a licensed broker. (Ind. Code. § 25-34.1-3-2(b)(5).) An operator who does not own (or substantially lease from the owner) the apartment community must obtain a license, but the operator’s employees need not be separately licensed. (Ind. Code § 25-34.1-3-2(a).) Fourth, if a person’s activities regulated by the licensing statute relate to a maximum of 12 apartment units that are located on a single parcel of real estate or on contiguous parcels of real estate, then the licensing requirement does not apply. (Ind. Code § 25-34.1-3-2(b)(6).) Suppose, for example, a person involved in operating or leasing rental property is a licensed real estate broker. In that case, the Indiana Real Estate Broker and Salesperson Licensing Act applies to regulate his/her activities even if that person is not required to be licensed.

Where a property owner must have a broker’s license, Indiana’s enforcement agency, the Office of Attorney General, has historically interpreted Ind. Code § 25-34.1-3-2 to require a person to be employed by or supervised by a person possessing a valid Indiana Broker’s license (see Ind. Code § 25-34.1-3-2(b)(5)). The theory behind the requirement is that if issues arise between property owners and residents (or in many cases the city where the property is located) that an actual person with ties to Indiana could be held responsible. Since 2022, the Office of Indiana Attorney General has been aggressive at enforcing this statute against operators and owners of rental properties, especially those located out-of-state.