An Arizona property management agreement is a contract between a property owner (landlord) and a manager hired to maintain the premises. The manager is compensated based on the terms negotiated by both parties, which often includes a percentage of the total rent collected. The contract will describe the types of responsibilities, the owner’s obligations, the length of the agreement, and the termination options.
License Required? Yes, a property manager must have a real estate broker license with the following exceptions (A.R.S § 32-2101(50)):
- Homeowners Association – A manager does not have to be licensed if they are working on behalf of a homeowners association and do not participate in sales or leasing for the property owners (Arizona Dept. of Real Estate).
- On-site Managers – A manager does not have to be licensed if they work at one location during their regular workday and are not paid any additional compensation for the leasing of property (A.R.S § 32-2121(6)).
- Short-Term Rentals – A manager does not have to be licensed for rentals of 31 days or less (Arizona Dept. of Real Estate).
- Services, obligations, duties, and responsibilities of the manager
- Specific start and end date
- Cancellation clause
- How money from the property will be collected and distributed
- Type and frequency of status reports
- Amount and purpose of reserve funds
- Disposition and allocation of interest earned in the trust
- The terms and conditions for compensation
Verify a Manager – https://services.azre.gov/PdbWeb/