Broker Management Clinic 3B–Property Management
Course Duration: 3 Hours Commissioner Standards
Course Description:
This comprehensive 3-hour course is designed for Designated Brokers and Brokers with Delegated Duties who are involved in property management within their real estate company. It fulfills the Property Management Course 3B requirement for real estate license renewal. The course covers various legal and practical aspects of property management as required by Arizona law and audit standards. It provides in-depth knowledge on the liabilities, responsibilities, and best practices associated with property management operations.
The course will delve into the following key topics:
- Designated Broker Liabilities & Broker Policy
Understand the critical role of the Designated Broker and their liability in managing property management activities, including supervision and risk management practices. - Generally Accepted Accounting Principles (GAAP)
Review accounting terminology, GAAP standards, and how they apply to property management businesses. Learn how to set up and maintain accurate accounting systems, including proper software use and when to consult experts for technical support. - Trust Accounting & Recordkeeping Requirements
Discuss the importance of maintaining proper trust accounts, including the correct set-up of accounts, required documents, and the legal responsibilities for handling client funds, with an emphasis on the Trust Account Reconciliation process (ARS § 32-2171, 32-2174, and R4-28-1103). - Sinking Funds/Reserves
Learn about sinking funds, reserve accounts, and how to manage these funds properly in compliance with Arizona property management laws. - Transactional Recordkeeping
Focus on maintaining proper documentation for transactions, including property management agreements, move-out requirements, and the disposition of deposits upon tenant move-out (ARS § 32-2173). - Property Management Advertising & Fair Practices
Understand the rules for advertising property management services and properties in a way that complies with the Arizona Administrative Code (AAC §§ R4-28-502(C) and 503(B)) and ensures fairness to prospective tenants. - Disciplinary Actions & Department of Real Estate Audit Procedures
Explore the role of the Department of Real Estate in property management activities, including audit processes, disciplinary actions, and the enforcement of the Landlord-Tenant Act. - Fiduciary Responsibilities & Legal Requirements
Review fiduciary duties in property management, including the necessity of maintaining transparent and accurate financial records, fair dealing with tenants, and the importance of having legal counsel available.
Throughout the course, students will participate in an independent quiz, which will be discussed in detail to reinforce key concepts. Real-life examples will be provided, and students will learn how to apply legal requirements and best practices for managing property efficiently and legally.
Prerequisites:
None, though a basic understanding of property management practices and real estate law is recommended.
Who Should Take This Course:
- Designated Brokers involved in property management
- Brokers with Delegated Duties in property management
- Property management professionals seeking to meet regulatory requirements and improve their management practices
By the end of this course, participants will have the knowledge to effectively manage property in compliance with Arizona state laws and best practices, helping them operate a legally sound and financially responsible property management business.
Lessons
1-Orientation of Online CE Class-BMC 3B
2-Property management is the oversight-BMC 3B
Property management is the oversight and operation of real estate properties on behalf of the owner, focusing on maximizing the asset’s value and ensuring a positive tenant experience. This role…
3-ARS 32-2171-BMC 3B
Let’s start with some definitions of property management. ARS 32-2171. Definitions In this article, unless the context otherwise requires: “Property management firm” means any corporation, partnership, or limited liability company licensed…
4-ADRE-BMC 3B
Role of the Arizona Department of Real Estate (ADRE) In Arizona, the Arizona Department of Real Estate (ADRE) regulates property management activities to protect consumers and maintain industry standards. ADRE’s…
5-Article 26 RIGHT OF LICENSED-BMC 3B
What allows a licensee to draft a contract in Arizona? CONSTITUTION OF THE STATE OF ARIZONA Article 26. RIGHT OF LICENSED REAL ESTATE BROKERS AND SALESMEN TO PREPARE INSTRUMENTS INCIDENT…
6-The Landlord-Tenant Act-BMC 3B
The Landlord-Tenant Act (officially known as the Residential Landlord and Tenant Act in many places) is a set of laws and regulations governing the relationship between landlords and tenants. It…
7-Section1 Exam-BMC 3B
Warning Please Read: The timer is required to run out before submitting the quiz for grading.
8-Employment Agreement-BMC 3B
Property Management Employment Agreement In Arizona, a Property Management Employment Agreement (PMEA) is a legally binding contract between a property owner and a property manager, outlining the terms of the…
9-Receive Violations-BMC 3B
Property management companies can receive violations for a variety of infractions, typically related to failing to meet legal, ethical, or operational standards set by local, state, and federal regulations. Common…
10-Legal Hotline Q & A-BMC 3B
Property Management Agreement Terminates Upon Death of Owner ISSUE: Under the property management agreement for the rental of the owner’s home, the property manager collects security deposits and rent from…
11-Accounting Terms-BMC 3B
Accounting Terms Used In Property Management Here are some key accounting terms relevant to property management trust accounts: Trust Account: A separate bank account used by property managers to hold…
12-Accounts signatories-BMC 3B
ARS 32-2174. Property management accounts, trust accounts, signatories All property management accounts shall be designated as trust accounts on the broker’s records. A broker’s trust account is required for all of…
13-Section2 Exam-BMC 3B
Warning Please Read: The timer is required to run out before submitting the quiz for grading.
14-Who wants to be a property manager-BMC 3B
Who wants to be a property manager? In 2009 AAR published the article: Is Property Management Right for You? This month, we take a fresh look with the help of…
16-Payment of finder fees-BMC 3B
32-2176. Payment of finder fees to apartment tenants; limits; prohibited activities; civil penalty; definitions Notwithstanding sections 32-2155, 32-2163 and 32-2165 or any other provision of this chapter, a property management firm…
17-Services Offered-BMC 3B
Services Offered: Evaluate the range of services provided. A good property management company should offer comprehensive services including tenant screening, rent collection, maintenance coordination, and legal compliance. Determine whether they…
18-Communication and Responsiveness-BMC 3B
Communication and Responsiveness: Effective communication is vital in property management. Choose a company that is responsive to your inquiries and provides regular updates about your property. You should feel comfortable…
19-Section3 Exam-BMC 3B
Warning Please Read: The timer is required to run out before submitting the quiz for grading.
20-Needs & Goals-BMC 3B
By considering many factors, you can make a more informed decision when selecting a property management company that aligns with your needs and goals. Hiring an expert for technology and…
21-Balance Sheet-BMC 3B
Let’s talk about the balance sheet. Here’s a sample balance sheet template for a property management company. This balance sheet format includes typical categories you’d expect in property management, which…
22-Signature card-BMC 3B
Ensuring that the appropriate parties sign all necessary documents can help protect against legal disputes and ensure compliance with applicable laws and regulations. A signature card is a document used…
23-Trust Account Liability-BMC 3B
In Arizona, a designated real estate broker, often referred to as the “responsible broker” for a firm, carries significant liability and must adopt policies to ensure compliance with state regulations.…
24-Specific Liability & Policy-BMC 3B
In Arizona, a designated real estate broker overseeing property management has specific liability and policy responsibilities to ensure legal compliance, protect client assets, and maintain operational integrity. Here are key…
25-Section 4 Exam-BMC 3B
Warning Please Read: The timer is required to run out before submitting the quiz for grading.
26-ARS 32-2174(C)-BMC 3B
ARS 32-2174(C) is an Arizona statute regarding property management trust accounts and the roles designated brokers can assign to others in managing these accounts. Specifically, it outlines the following: Authorization…
27-Property Management Agreements-BMC 3B
Property Manager Must Maintain Records for Three Years Reviewed May 2019 FACTS: A landlord and his property manager became entangled in a dispute regarding the cost of a repair performed…
28-Material Terms and Conditions in a PM-BMC 3B
Material Terms and Conditions in Property Management Agreements The section of the property management agreement detailing material terms and conditions is one of the most important parts of the contract,…
29-Monetary Handling & Reporting-BMC 3B
Monetary Handling and Reporting in Property Management Agreements The monetary handling and reporting provisions in a property management agreement are crucial for ensuring transparency, accountability, and compliance with legal requirements.…
30-Section 5 Exam-BMC 3B
Warning Please Read: The timer is required to run out before submitting the quiz for grading.
31-Broker Supervision and Control-BMC 3B
Section R4-28-1103 – Broker Supervision and Control An employing broker and a designated broker shall exercise reasonable supervision and control over the activities of brokers, salespersons, and others employed by…
32-Tenant Dissatisfaction & Complaints-BMC 3B
The agency performance between a tenant and a property manager is crucial for maintaining a positive rental experience and ensuring that both parties fulfill their responsibilities effectively. Here are several…
33-Disclosure Requirements for PM-BMC 3B
What are the disclosure requirements for property managers to give to prospective tenants? Property managers are typically required to provide several disclosures to prospective tenants, ensuring transparency and compliance with…
34-Arizona Real Estate trust account-BMC 3B
The Arizona Real Estate (AZRE) trust account reconciliation document is an essential financial record used by real estate brokers and property managers to ensure that the funds held in trust…
35-Section 6 Exam-BMC 3B
Warning Please Read: The timer is required to run out before submitting the quiz for grading
36-Final Exam-BMC 3B
The Final is not timed. Once you have passed this final… Remember to PRINT OUT YOUR CERTIFICATE
