Chapter 1
Arkansas Real Estate Law and Commission
Course: Arkansas Real Estate Exam Prep
Subject: Arkansas State Broker Exam Prep
Chapter: Contracts And Regulations Of Arkansas Real Estate Broker Exam Prep
The Nature of Property Management
Property management involves the operation, supervision, maintenance, and administration of real property on behalf of owners.
Property managers act as agents for property owners and therefore owe fiduciary duties similar to those arising in other agency relationships.
Property management responsibilities extend beyond rent collection. Managers frequently oversee leasing, maintenance, repairs, tenant relations, budgeting, inspections, recordkeeping, and regulatory compliance.
Effective property management protects property value while promoting stable landlord-tenant relationships.
The Property Manager as Agent
The management relationship is created through a property management agreement. This agreement establishes the manager's authority and responsibilities.
The property manager acts as a fiduciary representative of the owner and must exercise loyalty, care, honesty, and accountability.