That is a common statement real estate agents make when they are asking their broker for help with a landlord or tenant. While they are involved with the day to day issues of a tenant and landlord, they insist they are not managing the property.

So, what's the problem? The Arizona Revised Statutes identify the activities of a property manager and go on the say that if a licensee is a property manager (by definition) they must execute a Property Management agreement between themselves and the landlord. This is where real estate agents get themselves into trouble.

It is important to understand the activities that constitute property management, and once you recognize them, act accordingly. And, always be certain that your broker allows property management before executing an agreement with a landlord.

Since the question often arises from the agent that listed the property for lease and was successful in getting it rented, we will use that scenario. From the moment you list the property for lease, up until the tenant moves in, all of your activities are considered part of your listing obligations. No problem there. But, once that tenant moves in, and keys and money are exchanged, your obligations as the listing agent end. If you are not managing the property, you should not have any interaction with that tenant and that landlord about that property until that lease is ending. Talking to the tenant about repairs, calling the landlord in Ohio and telling them the tenant needs pest control and any activity like that IS property management and doing that without a valid PM agreement is a violation of state statute.

If your broker allows you to manage properties, great. You may do so under a valid property management agreement yet keep in mind, if you are handling rent monies, that money must be deposited to your broker's trust account or delivered direct to the landlord. You may not deposit those funds to any account other than the trust account or the landlord's account, and you personally may not be in receipt of those funds in any way.

With the sheer number of rentals increasing as a result of our recent market, more and more agents are handling leases. It is critical for any licensee to understand what activities constitute property management, what their obligations are and what they need to do to protect the landlord, tenant and themselves. If you are not sure, you must talk to your broker.