Quick Reference: Arkansas Property Management Licensing at a Glance

Arkansas has created dedicated property management license categories within its real estate licensing framework.

Act 392 of 2025, approved on 25 March 2025, established a Property Management Broker license and a Property Management Associate license, and built a separate statutory activity list around them. The Commission's rules to implement the Act were required to be filed on or before 1 June 2026, and AREC now administers the framework through its Property Management Licensee Information page, which Act 392 itself requires the Commission to post prominently.

The Act's legislative findings explain the reasoning. Before Act 392, AREC required a real estate broker license to rent or lease real property on behalf of an owner. The General Assembly found that the knowledge and skills needed by a property management broker "can be specialized and does not require the same skills and knowledge as those for a real estate broker or salesperson."

If your Arkansas operation has historically relied on traditional real estate licenses, or on exemptions, for its property management activities, this is the year to re-test the position.

The Provision Most Guides Miss: § 17-42-103(12)

Act 392 did not simply add two licence names to the existing framework. It added a separate activity list for property management, and that list is where the analysis now starts.

Section 17-42-103(12) defines a "property management broker" as an individual licensed under the chapter who, for a salary, commission or compensation of any kind, or with the intent or expectation of receiving valuable consideration, engages in the business of leasing, renting or subleasing real estate in Arkansas on behalf of an owner, lessor or potential lessee, and who does any of the following:

• Accepts employment by or on behalf of the owner, lessor or potential lessee to promote or conduct the leasing or subleasing

• Negotiates or attempts to negotiate the lease of real estate or improvements

• Engages in the business of promoting the lease or rental of real estate

• Assists in completing real estate lease contracts or property management agreements

• Procures tenants for owners

• Aids or offers to aid for a fee in locating or obtaining real estate for lease

• Makes advertising of real property for lease available by public display to potential tenants

• Shows rental or leased properties to potential tenants

• In conjunction with property management responsibilities, acts as a liaison between owners and a tenant or potential tenant

• In conjunction with property management responsibilities, generally oversees the inspection, maintenance and upkeep of leased real estate belonging to others

• In conjunction with property management responsibilities, collects rents or attempts to collect rents

• Pays a fee, commission or other compensation to a licensed broker, salesperson or property manager for referral of a prospective lessor or lessee

• Receives such a fee for making a referral

• Advertises or represents to the public that the individual is engaged in any of those activities

Two items on that list deserve particular attention because they reach beyond leasing.

Overseeing maintenance is a licensed activity. Generally overseeing the inspection, maintenance and upkeep of leased real estate belonging to others, in conjunction with property management responsibilities, appears in the list on its own footing. A maintenance coordinator role is not automatically outside the licensing question.

So is acting as liaison. Serving as the point of contact between an owner and a tenant is named expressly.

Section 17-42-103(11) then defines a property management associate as an individual holding that licence, employed by or associated with a property management broker, participating in §17-42-103(12) activities under the supervision of a property management broker, and with no supervisory authority over another licensee.

The older list at §17-42-103(10), which defines a principal broker, still exists and still covers renting and leasing real estate and collecting rent. Under §17-42-103(10)(B) as amended, a principal broker may perform any act listed in subdivision (12). The practical point for a manager is that both lists now matter, and the property management list is the more detailed of the two.

What Triggers a Licensing Requirement

Three provisions work together.

A single act. Under §17-42-301(b), any person who directly or indirectly for another, with the intention or on the promise of receiving valuable consideration, offers, attempts or agrees to perform any single act described in §17-42-103(10) or §17-42-103(12), "whether as part of a transaction or as an entire transaction," is deemed a broker, property management associate, property management broker, or salesperson within the meaning of the chapter. A single act therefore brings the person within the chapter's licensing requirements.

Acting without the appropriate license. Under §17-42-301(a) and (d), a person may not practice or represent themselves as a real estate broker, property management associate, property management broker or salesperson without first obtaining the appropriate license. Act 392 changed the wording from "a license" to "the appropriate license," which matters when a firm holds licenses of the wrong type.

Offering is enough to shift the burden. Under §17-42-109(b), the fact that a person offers to engage in or perform any act set out in §17-42-103(10) or (12) without the appropriate license is prima facie evidence that the person is engaged in unlicensed real estate activity.

And you cannot sue for the fee. Under §17-42-107(a) as amended, no action may be brought in any Arkansas court for compensation for performing acts described in §17-42-103(10) or (12) unless, at the time, the person held an active license as a principal broker or as a property management broker, or the claimant was the owner of a real estate firm or property management firm that performed the acts through the appropriate licensed broker or a person approved by the Commission. An unlicensed manager's management fee is not recoverable in court.

The Two Licenses: Education, Experience and Renewal

Education. Section 17-42-303(a)(3) provides that the education hours required of a property management broker applicant shall not exceed sixty (60) hours and shall include property management principles and practices, comprising:

• 30 hours covering landlord-tenant law; federal and state fair housing laws; the Americans with Disabilities Act; state licensing law and rules; trust accounts; accounting procedures and recordkeeping; contract law; and agency and disclosure

• 30 hours of Commission property management supervision best practices

Section 17-42-303(a)(4) provides that the hours required of a property management associate applicant shall not exceed thirty (30) hours, covering the same subject list.

Note the statutory phrasing. The Code sets a ceiling on what the Commission may require; AREC's property management page then states the requirement, and adds that broker applicants must complete their 60 hours within the 36 months immediately preceding the date of application. Check the Commission's current page for the operative requirement, because the statute alone does not give you the number.

Experience, for brokers only. Section 17-42-303(b)(3) sets the property management broker experience requirement as any combination of:

• Two years of experience as a licensed property management associate; or

• Two years of experience managing not fewer than seven residential or commercial units; or

• A total of two years combining the two

The seven-unit route is the notable one. It allows an experienced manager to qualify on a portfolio track rather than by serving time as an associate.

Post-licensure. Under §17-42-303(c), the Commission establishes post-licensure education for licensees in their first six months, capped at 30 classroom hours. Under §17-42-307(g)(2), a licensee who fails to complete it within six months of issue has the licence placed on inactive status until the Commission receives documentation of completion.

Continuing education. Under §17-42-307(c)(1), a property management broker or associate must complete annually not less than six nor more than seven classroom hours of continuing education required by the Commission, with at least one classroom hour focusing on safety, or the distance education equivalent, or a course the Commission has determined demonstrates mastery of an acceptable property management subject. Under §17-42-307(c)(3), a licensee who files for renewal without proof of continuing education has an inactive licence until proof is provided.

Fees. Section 17-42-304 sets caps rather than amounts: original and annual renewal fees not exceeding $80 for a property management broker and $60 for a property management associate, with expired-licence fees not exceeding $110 per year and $80 respectively. Confirm current fees with AREC.

Examination and background check. Examinations are administered by Pearson VUE. A state and federal criminal background check is required, and a licence is not issued until the Commission receives and approves it. Active duty military members, veterans and spouses may qualify for expedited processing, and those holding a substantially equivalent licence from another jurisdiction may qualify for automatic licensure under A.C.A. § 17-1-106.

Because the framework is new, confirm current application forms, fees and any transitional requirements directly with AREC before applying.

Firm Structure: Two Parallel Regimes

Act 392 created a property management firm structure alongside the existing real estate firm structure, and the two should not be blended.

Real estate firms. Under §17-42-301(e), a person or legal entity not licensed by the Commission may own a real estate firm, provided the employees or agents who perform activities identified under §17-42-103(10) or (12) hold an active license. The firm may contract or perform those activities only through a principal broker and a licensee employed by or associated with that principal broker holding an active license at the time.

Property management firms. Act 392 added §17-42-301(g). A person or legal entity not licensed by the Commission may own a property management firm, provided the employees or agents who perform property management activities identified under §17-42-103(12) hold an active license. Such a firm may contract or perform §17-42-103(12) activities only through a property management broker or a licensee employed by or associated with the property management broker who holds an active license at the time.

Section 17-42-301(h) allows the Commission to provide for the continuing temporary operation of a property management firm on the death, resignation, termination or incapacity of the property management broker, or on the closing of the firm, under a person the Commission approves.

Place of business and signage. Under §17-42-309(c), every property management broker must maintain a place of business and display a sign permanently attached to the building bearing the name under which the broker conducts business and the words "property management," "rentals," "leasing," or other words approved by the Commission that clearly indicate to the public that the broker is engaged in the property management business.

Branch offices. Under §17-42-309(d), a branch office requires a duplicate license. A duplicate license will not be issued for a branch office at which property management associates are assigned unless the property management broker has designated another property management broker with the firm to supervise them. Staffing a satellite office with associates and no designated supervising broker is not available.

License custody. Under §17-42-310(c), licenses of the property management broker and all licensees employed by or associated with them are retained by the broker and conspicuously displayed at the place of business. Under §17-42-310(d), on termination the licensee delivers the pocket card to the broker, who must promptly notify the Commission and return the license and pocket card, which automatically inactivates the license. Under §17-42-310(e), transferring an inactivated license requires a statement that the licensee is not taking any listings, management contracts, appraisals, lease agreements or copies belonging to the previous broker or firm.

A Limit Managers Should Read Twice

Section 17-42-311(a)(13) creates a violation that is specific to the new licenses.

While licensed only as a property management broker or property management associate, participating in or accepting anything of value for the listing, negotiation, or sale of real estate that the licensee does not own is a violation, including without limitation real estate managed by that property management broker or associate.

That closing phrase is the operative one. A property management licensee cannot take a referral fee or a share of a sale commission on a property in their own management portfolio. Selling work requires a real estate license, and the exclusion applies precisely where the temptation is greatest.

Related, §17-42-311(a)(9) makes it a violation to act as a property management associate while not licensed with a property management broker, or to represent oneself as an associate of anyone other than a licensed property management broker.

Penalties and limitation period. Under §17-42-312(d)(1), the Commission may impose a penalty of up to $100 for failing to complete annual education or post-licensure education by the deadline, and up to $250 for performing activities that require an active license while the license is expired, or for advertising in violation of the chapter or rules. Under §17-42-314(b), the Commission generally may not investigate or hold a disciplinary hearing unless the complaint is filed or investigation initiated within three years of the conduct.

The Exemptions, and How Narrow They Are

Section 17-42-104 lists who falls outside the chapter. Five matter here.

Owners. Subdivision (a)(1) exempts a person performing the listed acts with regard to property owned, leased or purchased by that person. For an entity, it reaches a member, manager, partner or officer with authority over the overall policy of the entity regarding real estate activities involving only the owner's interest.

Fiduciaries and attorneys. Subdivisions (a)(2) to (a)(4) exempt an attorney in fact under a recorded power of attorney who receives no consideration, an attorney at law performing duties as such, and a person acting as receiver, trustee in bankruptcy, administrator, executor or guardian, or under a court order, will or trust instrument.

Resident managers. Subdivision (a)(5) exempts a person acting as a resident manager when the resident manager resides on the premises and is engaged in leasing in connection with that employment. Residing on site is the operative condition; a roving manager covering several communities does not fit.

Leasing employees, on five defined functions. Subdivision (a)(6), as amended by Act 392, covers a person other than a property management associate employed only at a salaried or hourly rate to engage in the leasing of real estate for or on behalf of a licensed principal broker, the real estate firm of a licensed principal broker, a licensed property management broker, or an owner of real estate, provided the person:

• (A) does not otherwise engage in or offer to perform any act set out in §17-42-103(10) or §17-42-103(12) other than receiving a security deposit or payment as permitted below; and

• (B) performs only one or more of these five functions:

  1. Delivering a lease application, lease, or an amendment to either

  2. Receiving a lease application, lease or amendment for delivery to the principal broker, real estate firm, property management broker or owner

  3. Receiving a security deposit, rental payment or related payment for delivery to and made payable to the principal broker, firm, property management broker or owner

  4. Acting under the direct written instructions of the principal broker, firm, property management broker or owner in showing a rental unit, or assisting in the execution of a preprinted lease containing terms established by them

  5. Conveying information prepared by the principal broker, firm, property management broker or owner about a lease application, lease, the status of a security deposit, or the payment of rent

Read the two limbs together. This is not a general exemption for leasing staff. It is a closed list of ministerial functions, and doing anything else on either activity list takes the person outside it. Note that payments must be made payable to the broker, firm or owner rather than the employee, that the fourth function requires written instructions, and that the fifth permits conveying information prepared by someone else rather than answering questions from the employee's own knowledge.

Act 392 also carved a property management associate out of this exemption entirely, and added a property management broker to the list of principals an exempt employee may work for. Both changes follow from the associate now being a licensed category.

Employees of an entity. Subdivision (a)(10) exempts a person employed primarily at a salaried or hourly rate by a business entity acting with respect to real property owned or leased by the entity or an affiliate under common ownership, but only where all three of the following hold: the acts are not performed for or in expectation of compensation resulting solely from a successful transaction; the primary business activity of the entity and affiliate is not ownership or acquisition of real estate; and the employee is not providing real estate services to or on behalf of more than one entity not affiliated by common ownership.

That third condition is the one that catches third-party managers. Serving multiple unaffiliated owners defeats it.

The anti-circumvention clause. Under §17-42-104(c), no exemption is available to a person or entity that obtains an equitable interest in real estate knowing it was obtained on behalf of someone intending an interest other than ownership, or that "strategically circumvents the requirement for licensure thereby eliminating remedies available to consumers through the commission."

Common Arkansas Compliance Mistakes

1. Analysing only §17-42-103(10). The property management activity list is at §17-42-103(12) and is more detailed.

2. Treating maintenance oversight as unlicensed. Generally overseeing inspection, maintenance and upkeep of leased real estate belonging to others is on the §17-42-103(12) list.

3. Treating owner-tenant liaison work as administrative. It is also on that list.

4. Assuming the leasing employee exemption has four functions. Act 392 added a fifth, on conveying prepared information.

5. Letting an exempt employee answer from their own knowledge. The fifth function permits conveying information prepared by the broker, firm or owner.

6. Applying the resident manager exemption to a roving manager. Subdivision (a)(5) requires residing on the premises.

7. Using the entity-employee exemption while serving several owners. Subdivision (a)(10) fails on that condition.

8. Blending the two firm structures. Real estate firms run through a principal broker under §17-42-301(e); property management firms run through a property management broker under §17-42-301(g).

9. Staffing a branch with associates and no designated supervising broker. Section 17-42-309(d) blocks the duplicate license.

10. Taking a sale referral fee on a managed property. Section 17-42-311(a)(13) prohibits it for a person licensed only in property management.

11. Missing the six-month post-license deadline, or the annual CE. Either can leave the licence inactive.

12. Assuming an unlicensed manager can sue for the fee. Section 17-42-107(a) bars the action.

Keeping the Compliance File Straight

An AREC file is made of documents with dates on them: the current management agreement for each owner, the trust account and rent handling records, the education certificates behind each license, and evidence of the written instructions given to unlicensed staff.

Property management platforms such as RIOO covers leasing, finances, maintenance and tenant management across residential, commercial and mixed use  portfolios, can help centralize those operational records so a team has a clear history of what happened and when.

Conclusion

Arkansas has moved to a dedicated licensing structure for property management within its existing real estate licensing framework. Act 392 of 2025 created the Property Management Broker and Property Management Associate licences, wrote a separate fourteen-item activity list for property management at §17-42-103(12), and built a parallel firm structure around it.

For a manager, the work divides into three questions.

Who performs a listed act? Start with §17-42-103(12), not only the older broker list. It reaches showing properties, acting as owner-tenant liaison, overseeing maintenance and upkeep, and collecting rent.

Does an exemption genuinely fit? The resident manager exemption requires residing on site. The leasing employee exemption permits five ministerial functions and nothing more, and is closed to a property management associate.

Is the structure right? A property management firm performs its activities through a property management broker under §17-42-301(g). The broker needs a place of business with a permanently attached sign, a branch office with associates needs a designated supervising broker, and a licensee holding only a property management license may not take value from sales, including on managed property.

For firms in Little Rock, Fayetteville, Springdale, Rogers and Fort Smith, the sensible first step is an audit rather than an application. Map every role against both activity lists, test each claimed exemption against its actual conditions, then decide which people need which license. Because a single act brings a person within the chapter, the exposure is per person and per act.

This blog is for informational purposes only and does not constitute legal advice. Act 392 of 2025 is recent and the Arkansas Real Estate Commission's implementing rules, forms and fees may have changed since publication. Confirm current requirements with the Arkansas Real Estate Commission and consult a licensed Arkansas attorney on a specific structure or exemption question.

Frequently Asked Questions

Q1. Do you need a license to manage rental property in Arkansas?
Generally yes. Section 17-42-103(12) lists property management activities requiring a license, including leasing, showing properties, collecting rent and overseeing maintenance. Exemptions are narrow.

Q2. What licenses does Arkansas have for property managers?
Act 392 of 2025 created a Property Management Broker license and a Property Management Associate license, administered by AREC alongside the traditional salesperson and broker licenses.

Q3. How much education does each license require?
The statute caps the broker requirement at 60 hours, comprising 30 hours of listed subjects plus 30 hours of supervision best practices, and the associate requirement at 30 hours. Confirm the operative figures with AREC.

Q4. What experience does a property management broker need?
Under §17-42-303(b)(3), two years as a licensed property management associate, or two years managing not fewer than seven residential or commercial units, or a two-year combination.

Q5. Does overseeing maintenance require a license in Arkansas?
Section 17-42-103(12) lists generally overseeing the inspection, maintenance and upkeep of leased real estate belonging to others, in conjunction with property management responsibilities, as a covered activity.

Q6. Can unlicensed leasing staff work at an Arkansas property?
Only within §17-42-104(a)(6), which permits five ministerial functions and is closed to a property management associate. Anything further requires a license.

Q7. Can an unlicensed person own an Arkansas property management firm?
Yes. Under §17-42-301(g) an unlicensed person or entity may own a property management firm, but the firm's property management activities must be performed through a property management broker or a licensee associated with that broker who holds an active license.

Q8. Can a property management licensee earn a fee on a sale?
No, if licensed only in property management. Section 17-42-311(a)(13) makes it a violation to accept anything of value for listing, negotiating or selling real estate the licensee does not own, including real estate they manage.

Q9. What continuing education applies?
Under §17-42-307(c)(1), six to seven classroom hours annually, including at least one hour focusing on safety, or an approved equivalent. Filing for renewal without proof leaves the license inactive.

Q10. Can an unlicensed manager sue for unpaid management fees?
Section 17-42-107(a) bars an action for compensation for performing listed acts unless the person held the appropriate active license, or the claimant owned a firm that performed through the appropriate licensed broker.