Property Management Laws in Arizona

Must an Arizona property management company have a real estate broker's license?

YES. Key components of property management are considered a real estate activity under existing Arizona real estate licensing laws. A broker's license is required for any person or company who, for compensation, engages in the lease or rental of real estate in Arizona, who offers or lists real estate for rent or lease, who collects rent for the use of real estate or who negotiates the rental or leasing of Arizona real estate. A salesperson working under a broker may engage in such activities.

Arizona is one of the few states having a section in its real estate statute specifically devoted to property management requirements. Arizona law requires that property management agreements contain specific provisions, that all property management accounts are designated as trust accounts, and that records be kept in a certain manner.

Are there any exceptions to the requirement that an Arizona property manager have a broker's license?

Yes. For example:

• Residential leasing agents or on-site managers of residential rental properties need not be licensed if they work at only one location during their regular work day and receive no special compensation (such as commissions or property management fees).
• Property managers for one or for contiguous nonresidential income properties under common ownership, employed by the owner's licensed management agent;
• People engaged in short-term rentals (31 or fewer days in a dwelling unit in a common interest development).

For more information about these and other Arizona property management requirements and exceptions, please contact the Arizona Department of Real Estate.

Before hiring a property manager to manage your Arizona rental property, you should always check that he or she is licensed appropriately. You can look up a licensee, real estate school or get a public report on the Arizona Department of Real Estate's Public Database.

Arizona Community Association Management Licensing

A community association manager need not be licensed as a real estate broker to manage a community or condominium association in Arizona unless they sell or lease the properties on behalf of individual owners.

Arizona Real Estate Broker Requirements

Arizona real estate broker licensing requirements include:

• Age: Be at least 18 years of age at the time of application
• Education: Complete 90 hours of pre-license education at an approved school
• Exam: Pass the examination. Online education is not approved for prelicensing education.
• Safety: Obtain a Fingerprint Clearance Card from the Arizona Department of Public Safety (which may take eight to ten weeks).
• Trustworthiness: Completion and approval of Disciplinary Action Disclosure Form (to ensure that there have been no convictions for crimes of "moral turpitude").
• Experience: Completion of Broker Candidate Experience Verification: demonstrating three years of actual experience as a licensed real estate agent or broker within the past five years.

Arizona Real Estate Salesperson Requirements

Arizona real estate salesperson licensing requirements include:

• Age: Be at least 18 years of age when applying for a license
• Education: Complete 90 hours of "in classroom" Real Estate Salesperson pre-licensing education at an approved Arizona real estate school. In addition, prior to application, the application must attend a 6 hour contract writing class.
• Exam: Pass the examination at an ADRE-approved real estate school, college or university. Pre-licensing education cannot include online education. The fee for the exam is $75.00.
• Safety: Obtain a Fingerprint Clearance Card from the Arizona Department of Public Safety (which may take up to 8-10 weeks)
• Trustworthiness: Complete the Disciplinary Actions Disclosure Form. A license cannot be issued to a person convicted of a felony who is incarcerated, paroled or under community supervision or on probation. The Department may not issue a license to a person who has been convicted of a felony, or convicted of a misdemeanor offense or crimes of "moral turpitude"
• Fee: $120 ($110 for License and $10 for Real Estate Recovery Fund)

For more information about these and other licensing requirements, please contact the Arizona Department of Real Estate.