TL;DR: A property manager needs a real estate license in Arkansas when acting for another, for compensation, to rent or lease real estate or collect rent, acts listed in A.C.A. § 17-42-103(10), and AREC requires 60 hours of property management education for a broker license and 30 hours for an associate license (AREC page, opened October 30, 2026). Verify the license, the principal broker's supervision, the trust account and a written agreement before handing over rent. Narrow exemptions cover resident managers and salaried staff with limited duties.
Does a Property Manager Need a Real Estate License in Arkansas?
Yes, in most cases. Arkansas Attorney General Opinion 2023-070 (issued October 16, 2023) concluded that an individual who acts for another, for compensation, to rent or lease real estate must be licensed. Under the current license law, the acts in A.C.A. § 17-42-103(10) include renting or leasing real estate and collecting rent, and § 17-42-103(12) defines a property management broker. A person who for another and for valuable consideration performs even a single act described in A.C.A. § 17-42-103(10) or (12) is deemed a licensee (§ 17-42-301(b)), and § 17-42-301(a) requires the license before practicing (Arkansas Real Estate License Law, AREC compilation dated August 2025).
The test is about who the manager works for and whether they are paid. It does not turn on the job title. A person who advertises your Rogers duplex, shows it, signs the lease on your behalf or collects rent for a fee is acting for you. Calling that person a coordinator, consultant or assistant does not change the analysis.
The owner exemption in § 17-42-104(a)(1)(A) covers an unlicensed person acting as the owner of the freehold or leasehold interest. It covers the owner, not an unlicensed helper paid to act for the owner (Arkansas Real Estate License Law, AREC compilation dated August 2025).
If you own rental property in Benton or Washington County and are interviewing managers, treat an unlicensed candidate who would collect rent or sign leases for a fee or commission as a disqualifier, because the work itself needs a license.
Who Is Exempt From the License Requirement?
Exemptions are narrow and fact-specific. Under A.C.A. § 17-42-104(a)(10), an employee of a business entity may rent or lease real estate the entity owns license-free only when all three conditions hold. First, the employee works for pay other than a commission or other compensation resulting solely from a successful transaction. Second, the entity's primary business is something other than ownership or acquisition of real estate. Third, the employee provides real estate services to or on behalf of at most one entity outside common ownership (Attorney General Opinion 2023-070, October 16, 2023; AREC compilation dated August 2025).
An independent manager who serves several owners fails the third condition at once. A manager paid per lease signed fails the first. A company whose main business is owning rentals fails the second.
Two other exemptions matter to owners: a resident manager who lives on the premises and leases in connection with employment (17-42-104(a)(5)), and a person employed only at a salaried or hourly rate who performs only limited functions for an owner, such as delivering lease papers, receiving rent or deposits payable to the owner, or showing a unit under the owner's written instructions (17-42-104(a)(6)). Anything beyond those functions, or any pay tied to leases, points back to a license.
The same opinion relied on a Commission rule, now 17 CAR § 220-1016(b), that excludes certain regulated residential property management programs from the property management subpart. The Attorney General concluded the nonprofit in that opinion would likely qualify. That conclusion rests on the nonprofit's regulated program, so it does not extend to a private management company.
If a candidate says they are exempt, ask in writing which exemption applies and how they meet each of its conditions. A licensed firm will not need an exemption, and with an unlicensed one you carry the risk.
What License Should a Manager Hold, and How Do You Verify It?
Ask for a license number and the name of the principal broker who supervises the manager. The 2026 AREC rules (17 CAR § 220-1024) license property management brokers with designations that include principal property management broker. Principal brokers must strictly supervise their licensees (17 CAR § 220-1003(b)(2)).
AREC's property management licensing page sets the education: 30 hours of property management education for an associate license, and 60 hours for a broker license, completed within the 36 months before applying (page opened October 30, 2026; 17 CAR § 220-401(b)(3)(A)(i); A.C.A. § 17-42-303). Ask where the manager completed that coursework and when.
Confirm the license with AREC directly rather than relying on a business card or website badge, and match the name, license type and firm to the person who will actually handle your property.
Disciplinary history is also public. AREC posts hearing and disciplinary orders. One order, posted May 7, 2019, fined Principal Broker Michael Rushin $7,000 and requires an appearance before the Commission before any reinstatement. An older consent order dated May 1, 2005, revoked a Conway broker's license after findings that included weak supervision of a salesperson's property management activities and trust account failures. Search AREC's orders for the manager's name and the firm's principal broker before you sign.
How Should a Licensed Manager Handle Your Rent and Deposits?
A license is the starting point. The money handling is where owners lose most. Under the 2026 AREC rules, a principal broker shall not commingle trust funds (17 CAR § 220-1007(b)) and is solely responsible and accountable for all trust funds ((c)(2)). Security deposits under a lease go in the principal broker's trust account ((h)(1)(A)).
Trust funds covered by a contract must be deposited, delivered to an escrow agent, or placed under a written agreement no later than three (3) days after both parties execute the contract, extended to the next day that is not a Saturday, Sunday or legal holiday ((g)(1)). Trust account statements must be reconciled in writing every month ((g)(2)(A)), and commission staff may inspect trust fund records ((g)(3)).
The deposit statute matters too. Under Ark. Code 18-16-305 and 18-16-303, a landlord must return a security deposit within 60 days of the end of the tenancy. The exclusion for small individual owners does not apply when a third party manages the units for a fee, so hiring a manager puts you inside the rule.
Ask to see a sample monthly owner statement and the name of the bank holding the trust account. Request written confirmation that the account name includes the word trust or escrow, since the 2005 Conway order cited exactly that failure. A manager who hesitates on any of these should be removed from your list.
What Should You Do With These Numbers?
- Ask each candidate for a license number and the supervising principal broker's name, then confirm both with AREC before the interview ends.
- Search AREC's published hearing and disciplinary orders for the manager and the principal broker.
- Request a written, current management agreement that states fees, monthly statements of accounting and the duration of the agreement (17 CAR § 220-1017(a); see also § 220-1002(a)), and that says who holds deposits.
- Ask for a sample monthly trust reconciliation and the three (3) day deposit practice described in 17 CAR § 220-1007(g)(1).
- Rule out anyone claiming an exemption who cannot show how they meet every condition of A.C.A. § 17-42-104(a)(5), (a)(6) or (a)(10).
Rent levels show what is at stake. Skyline's average multifamily lease rate across Northwest Arkansas (Benton and Washington counties) was $1,145 per unit per month in 1H 2026, up from $1,127 in 2H 2025. Skyline's 1H 2026 city averages run from $1,296 in Bentonville and $1,280 in Rogers to $1,112 in Springdale, $1,060 in Fayetteville and $858 in Siloam Springs (multifamily properties surveyed; not single-family rents). Every month of rent passes through the manager's hands before it reaches you, so the trust account deserves the same scrutiny as the license.
Frequently Asked Questions
Can an unlicensed person collect rent for me in Arkansas?
Generally not for a fee or commission; limited exceptions exist for resident managers and salaried or hourly staff who only receive payments for delivery to the owner (§ 17-42-104(a)(5), (6)). Arkansas Attorney General Opinion 2023-070 (October 16, 2023) concluded that an individual who acts for another, for compensation, to rent or lease real estate must be licensed. Pay tied to leases points back to a license.
Can I manage my own rental without a license?
Yes. Ark. Code § 17-42-104(a)(1)(A) exempts an unlicensed person acting as the owner of the freehold or leasehold interest (AREC License Law compilation, August 2025). The exemption covers you as owner, not an unlicensed helper you pay to act for you, so a paid assistant who leases or collects rent for you raises the licensing question.
What education does a licensed property manager need?
AREC requires 30 hours of property management education for an associate license and 60 hours, completed within the 36 months before applying, for a broker license (AREC property management licensing page, opened October 30, 2026; 17 CAR § 220-401(b)(3)(A)(i)). Each licensee must also finish post-license education within six months of initial licensure, and the page cites A.C.A. § 17-42-303.
Where should my tenant's security deposit be held?
With a managed lease, in the principal broker's trust account. The 2026 AREC rules, 17 CAR § 220-1007(h)(1)(A), place security deposits under a lease in that account, and the principal broker may not commingle trust funds ((b)). Ask for the account's bank and confirm the owner statement shows each deposit held.
Mason Capital Group will provide a written vetting checklist for the manager you are considering in a first conversation, covering license verification, trust account questions and the management agreement terms to request. Call 479-925-3333 to schedule it.
About the author: Cameron Torabi, Principal Broker — Mason Capital Group. 30+ years of Northwest Arkansas real estate expertise; $2.4B+ in cumulative transaction activity (estimated).
Figures in this article are drawn from Arkansas Attorney General Opinion No. 2023-070 (issued October 16, 2023); Arkansas Real Estate Commission property management licensing page (opened October 30, 2026); 2026 AREC Rules, 17 CAR 220, including 220-401, 220-1003, 220-1007, 220-1016, 220-1017 and 220-1024 (fetched October 29-30, 2026); Arkansas Real Estate License Law, AREC compilation dated August 2025; AREC hearing and disciplinary orders (Rushin, posted May 7, 2019; Gates, dated May 1, 2005); Ark. Code 18-16-305 and 18-16-303 (text fetched October 24, 2026); and University of Arkansas Walton College CBER, Arvest Skyline Report multifamily highlights and multifamily report (1H 2026).