Arizona Property Management Laws & License Requirements: Complete Guide for 2026

Managing rental properties in Arizona comes with clear legal and licensing obligations. Whether you manage a single rental or a growing portfolio, understanding Arizona property management laws is critical to avoiding fines, license issues, and compliance risks.

This guide explains Arizona property management laws and license requirements in plain language, who needs a license, which activities are regulated, how trust accounts work, and what property managers must do to stay compliant in 2026.

Do property managers need a license in Arizona?

Yes.

In Arizona, property management is considered a regulated real estate activity when it is performed for others and for compensation.

Under guidance from the Arizona Department of Real Estate (ADRE), a real estate license is required if you perform activities such as:

• collecting rent or other funds on behalf of an owner
• negotiating, executing, or renewing leases
• handling security deposits
• advertising or listing rental properties for others
• managing properties under a formal management agreement

Arizona does not issue a separate “property management license.” Property managers operate under the state’s real estate licensing framework.

Arizona real estate license types for property managers

While a real estate license is required to perform property management activities, the license level matters depending on your role.

Salesperson license

• May perform property management activities only under the supervision of a licensed broker
• Common for leasing agents and junior property managers

Broker license

• Required to operate an independent property management company
• Required to open and control property management trust accounts
• Holds primary responsibility for compliance, recordkeeping, and audits

If you are collecting rent, holding security deposits, or managing funds for multiple owners, these activities are typically conducted under a broker-controlled trust account, making the broker license central to compliant operations.

If you’re building or scaling a firm, this internal guide provides helpful context: Laying the foundation: essential steps for starting a property management business

When is a license NOT required?

A real estate license may not be required only if all of the following apply:

• You are managing property you personally own
• You are a salaried employee of the property owner (not paid per transaction or commission)
• Your role is strictly clerical or administrative, such as:
  • answering phones
  • scheduling maintenance
  • entering data
  • preparing documents without negotiation authority
• You do not:
  • negotiate lease terms
  • collect or handle rent or deposits
  • sign leases
  • advertise property on behalf of others

These exemptions are narrow. Many compliance violations in Arizona occur when individuals assume they qualify for an exemption while still performing licensed activities.

Trust account requirements in Arizona

Arizona has strict rules governing how property managers handle owner and tenant funds.

Property managers must:

• Use designated trust accounts for client funds
• Keep trust funds separate from operating funds
• Deposit rent and security deposits promptly
• Maintain clear, auditable records for each property and owner

Trust accounts are generally controlled at the broker level, and improper handling of trust funds is one of the most common reasons for disciplinary action by ADRE.

For a deeper operational breakdown, this resource aligns closely with Arizona compliance expectations:
The cornerstone of credibility: best practices for managing a property management trust account

Security deposit rules in Arizona

Arizona law places specific limits and requirements on residential security deposits:

• Security deposits (including prepaid rent) may not exceed 1.5 months’ rent
• Deposits must be returned within the statutory timeframe after move-out
• An itemized written list of deductions is required if any portion is withheld
• Arizona law does not require interest to be paid on security deposits

Because deposit disputes often arise from poor documentation, consistent move-in and move-out records are essential.

This checklist supports compliance and dispute prevention: The ultimate rental inspection checklist for property managers

Lease and disclosure requirements

Arizona property managers are expected to follow clear leasing and disclosure practices, including:

• using written lease agreements for enforceability
• disclosing the identity of the owner or authorized agent
• maintaining habitability standards
• complying with state and federal fair housing laws

As portfolios grow, inconsistent lease processes become a compliance risk. Structured workflows help reduce errors and omissions.

Maintenance, habitability, and tenant rights

Property managers in Arizona must ensure that rental units meet basic habitability standards and that maintenance issues are addressed in a timely manner.

Failure to meet maintenance obligations can result in:

• tenant repair-and-deduct actions
• lease termination
• legal or regulatory exposure

For operational alignment, this internal guide fits well here: The essentials of effective property maintenance management

Advertising and fair housing compliance

All rental advertising in Arizona must comply with fair housing laws and avoid discriminatory language or misleading claims.

Listings should:

• accurately reflect availability and pricing
• avoid exclusionary or biased language
• be consistent across platforms

If listings aren’t performing or are creating compliance risk, this blog is highly relevant:
Why your rental listings aren’t converting and how to get more applications

Recordkeeping and audit readiness

Arizona property managers are expected to maintain accurate records, including:

• lease agreements and amendments
• rent and payment records
• trust account reconciliations
• maintenance logs
• owner statements

Most compliance issues stem not from unclear laws, but from fragmented or incomplete records.

If audits, reconciliations, or reporting are ongoing pain points, Propertese helps centralize leases, rent payments, documents, and reporting, making compliance easier to maintain year-round.

Penalties for non-compliance in Arizona

Failure to comply with Arizona property management laws can lead to:

• fines and civil penalties
• license suspension or revocation
• legal liability
• reputational damage and loss of clients

Most enforcement actions are tied to unlicensed activity, trust account violations, or poor recordkeeping.

Final thoughts

Arizona property management laws are clear, but they are also strictly enforced. Licensing, trust accounts, disclosures, and documentation are not optional; they are the foundation of operating legally in the state.

As portfolios grow, compliance becomes harder to manage with spreadsheets and disconnected tools. Centralized systems make it easier to maintain accurate records, support audits, and stay aligned with regulatory requirements.

Propertese supports compliant property operations by centralizing leasing, rent collection, documentation, and reporting, helping property managers stay organized and compliant as they scale. Get a demo today.