In Arizona, a real estate broker’s license is required to legally operate as a property manager. Licenses require 90 hours of education, a 6 hour contract writing class, passing an exam and a background check. Exceptions exist for on-site managers, short-term rentals & community association managers.
Arizona Property Management License Requirement
As is the case in nearly all other US states, Arizona requires that all individuals or groups participating in certain types of property management activity be licensed through the state.
While the specific types of real estate activities that require a license are not enumerated by the state, it is assumed that this overarching requirement applies to all forms of real estate transaction or listing that is focused on attaining financial compensation. This includes individuals who negotiate real estate contracts, both for the purposes of renting and leasing.
Exceptions to Arizona’s Real Estate License Requirements
Yes, Arizona does make several exceptions to its real estate licensing requirement that may affect how you choose to structure or operate your property management business.
- On-site managers. First, on-site managers do not need to be licensed as real estate brokers or salespeople if they work at only a single location (as a landlord would). However, those that receive commissions or other forms of special compensation may need to be licensed due to the sales-focused emphasis of their income.
- Short-term rentals. Second, individuals engaged in short-term rentals of 31 days or fewer need not be licensed. Third and finally, salespeople who work in the employ of a licensed real estate broker need not be licensed themselves unless they fall outside the exceptions described above.
- Community association managers. Third, community association managers do not generally need to be licensed as a real estate broker or salesperson. However, if the individual in question is actively selling or leasing a managed property on behalf of the property’s owner, they will likely need to register their activity with the state through the licensing process described above.
Obtaining a Real Estate License in Arizona
Arizona places its licensing requirements for real estate operations into two general categories, education and background checks. Arizona’s requirements in the latter category are more extensive than most other states, so be sure to attend to each type of disclosure before finalizing your application for a state real estate license.
As a so-called “non-reciprocal” state, Arizona requires that all prospective real estate salespeople and brokers operating in the state complete 90 hours of pre-licensing education at a state-approved real estate school. At the conclusion of this course of education, all applicants must pass that institution’s final examination satisfactorily.
As a further education requirement designed to meet the state’s mandates for proper understanding of industry-specific English, applicants must provide proof of completion for a 6-hour contract writing class.
Finally, after completing these two courses of education, applicants will need to complete the state’s licensing examination. This can be completed through the state’s testing partner, which is currently Pearson VUE.
Background Check Requirements
Arizona requires several different types of background checks, starting with a Fingerprint Clearance Card. Applications for this check can be obtained through the Arizona Department of Public Safety.
Next, applicants are required to file a Disciplinary Actions Disclosure Form (LI-214/244) in order to voluntarily list and describe any prior criminal history. Finally, applicants will need to submit a Disclosure Document Checklist (LI-400), which provides an opportunity to describe any civil judgements against the applicant.
As you make plans to complete Arizona’s real estate education and background check requirements, be sure to take some time to check out the Arizona Department of Real Estate website. There, you’ll find up-to-date guides to completing the licensing process, as well as links to all of the relevant statues governing property management in the state.