Updated on May 26th, 2023
An Arkansas property management agreement describes how an individual or a company will manage a property on behalf of its owner. The signed document will include the contract duration, how much compensation the manager will receive, and what duties they are to carry out for the owner. How much autonomy the manager has to sign leases and oversee repairs should also be included, along with conditions for early termination and dispute resolution.
License Required? Yes. In Arkansas, anyone who handles property for another in exchange for compensation must first obtain a broker’s license (§ 17-42-301). There are some exceptions to these licensing requirements:
- Resident Managers – A manager does not need a broker’s license if they live on the property and rent the property as part of their employment (§ 17-42-104(a)(5)).
- Broker’s Employee – A paid employee working under a licensed broker does not need a license but is limited to specific tasks, including (§ 17-42-104(a)(6)(b)):
- Delivering a lease application or lease to any person.
- Receiving a lease application or lease for delivery to the supervising broker or the property owner.
- Receiving security deposits to deliver to the broker or property owner.
- Showing rental units or executing a rental agreement under direct written instruction from the broker or owner.
- Business Employee – An individual working for a business entity that owns real estate does not need a broker’s license to manage the properties owned by that business as long as the primary business activity is not real estate ownership or acquisition (§ 17-42-104(a)(10)).
Agreement Requirements – In accordance with Arkansas law (§ 10.19(a)), every property management agreement must include:
- The property’s legal description or address.
- The name and address of the property owner.
- The duties and responsibilities of both property manager and owner.
- What authorities the owner gives to the property manager.
- The compensation the property manager will receive and when it will be paid.
- Financial statements the property manager must give the owner.
- Contract duration and any rollover, renewal, or automatic extension clauses.
- How the contract can be terminated.
- The date the agreement was signed.
- The signatures of the manager and the owner.
Verify a Manager – ark.org/arec_renewals