Laws

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