How to Start a Property Management Business in Arizona

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Start a Property Management Business in Arizona

Are you considering starting a property management business in Arizona? This exciting opportunity offers numerous advantages, such as a growing market, recurring income, and the flexibility to set your own schedule. As more people move to Arizona with a current population of 7,379,346, the demand for professional property managers is increasing, making this an ideal time to explore this entrepreneurial venture. Furthermore, property management businesses tend to be more resilient to economic fluctuations, offering a stable and secure career path. This article will teach you the basic steps to start a property management business in Arizona.

Before diving into the world of property management, it’s essential to familiarize yourself with the necessary steps and requirements to establish a successful business in Arizona, popularly known as The Grand Canyon State. If you plan to register an LLC in Arizona for your property management business, the guidelines will be different from that of a corporate structure.

Prerequisites to Start Property Management Business in Arizona

In order to start a property management business in Arizona, several prerequisites must be met. First and foremost, you’ll need to obtain the necessary business licenses and permits required by your local government. This may include obtaining a real estate broker’s license, which often involves completing coursework and passing an exam. Additionally, you should familiarize yourself with the state’s specific landlord-tenant laws and regulations and any local zoning and building codes.

Prior experience in property management or real estate will be valuable, as well as strong communication, organizational, and customer service skills. Ultimately, establishing a solid network of industry professionals, such as contractors, attorneys, and real estate agents, will be crucial to the success of your property management business in Arizona.

The requirements include obtaining the relevant licenses and permits, understanding the state’s landlord-tenant laws, and building a strong network of industry professionals. By carefully planning your entry into this thriving industry, you’ll be well on your way to creating a thriving property management business that provides value to clients and contributes to Arizona’s housing market growth.

Property Management Business needs some special permits and expertise. It is recommended to consult any legal and industrial expert before you start processing your business registration in Arizona. Besides, checking with local governments and authorities is highly recommended.

LLCBuddy Editorial Team

How to Start a Property Management Business in Arizona

In Arizona, opening a property management company can be challenging, with obstacles posed by laws and regulations. Finding the initial steps to establishing a property management firm might take time, given the many associates you need to consider. It should go without saying that this procedure may be difficult and occasionally expensive without the right advice and guidance to lead you in the correct direction.

Step 1: Get a Business Plan

Writing a business plan is of paramount concern and should be every person’s first move when starting a property management business. A business plan gives you a thorough overview of the enterprise, lists the goods and services your business will offer, and explains what need or requirement each will address. It is also heavily advised that a market analysis be included in your company plan. 

Aside from the insight into the goods and services you offer, this furthermore aids in identifying your competitors, target market, and the reasons why they require the goods or services you will be offering. Don’t forget to include a thorough operations strategy and a financial plan outlining the finances required to establish the business and its source.

Step 2: Choose a Business Structure in Arizona

Understanding and choosing how to form a property management firm effectively is a crucial step in the entire process. To begin with, before you can run your property management business, you must decide what type of business structure you want. If you are forming a corporation, filing the Articles of Incorporation with the Secretary of State is a requisite. On the other hand, if you are forming an LLC, you need to file the Articles of Organization with the SOS. 

Step 3: Get a Business Name in Arizona

Getting a business name is the most important part of giving your company its identity. The name of a property management company should strike a balance between being memorable and simple to understand. Besides, Arizona has its own regulations for naming your business. There are some Arizona LLC naming guidelines for LLCs. It’s best to check the Arizona Secretary of State’s website to check if your decided name is available. Once you have a name figured out, it’s also to check for a relevant domain name in case you want to direct clients to your website online.

Step 4: Assign Your Arizona Statutory Agent

The next thing you need to do is get a Statutory Agent. The Arizona Statutory Agent is an individual or entity that handles your official and legal documents on your behalf. A Statutory Agent will receive legal notices if your organization gets sued. You can be your own agent. However, it is good to appoint a professional service.

Step 5: Register Your Property Management Business in Arizona

The most crucial step is registering your property management business in Arizona. You must send the registration form to the Arizona Secretary of State by mail or online, whichever is available for your business. If you form an LLC, you must file the Arizona Articles of Organization and for the corporation, you must file Arizona Articles of Incorporation. Pay the filing fee to the Arizona Secretary of State while registering your business. For LLCs, the filing fee is $50 and for Corporations, the filing fee is $60 for filing in-person and by mail.

Step 6: Apply for Arizona Business Licenses and Permits

You must obtain proper business licenses and permits for your property management business in Arizona. The license and permit types depend on the location (city/county) and the property you manage under your business. You must check with the Arizona Department of Revenue. In Arizona, you do not need to obtain General License. Also, you do not need to get a Privilege License.

Step 7: Purchase Equipment For Your Arizona Property Management Business

The equipment you need to launch a property management business won’t be excessive. You might either set up a home office or rent office space. Both reliable transportation and access to editable contracts may be made possible by joining a legal website. Other tools include a printer, computer, smartphone, and fax machine.

Consider assembling a good set of tools to handle everything from electrical to plumbing issues if you intend to handle your repairs in-house. But be mindful of licensing regulations and construction codes. You’ll need to either order signs for the properties you manage or deal with a printer familiar with property signage to comply with state-specific standards.

Step 8: Market Your Arizona Property Management Company

Many property management firms in Arizona use online and offline marketing strategies. Social media can be useful, but you should be careful which platforms you choose based on your target market. LinkedIn might help you expand your network if you want to work with property owners.

Additionally, consider publishing a newsletter to send to property owners monthly or every three months. It might have informative pieces about the sector and endorsements from pleased customers. A recommendation program for real estate agents could also be established. You can send the agent a gift or referral money for each customer they suggest.

Apartment management may come to mind when you think of property management. The most prevalent property management business deals with apartments, condos, single-family homes, and multi-generational homes. Yet, Arizona is home to many successful property management firms.

Important Information

Cost to Start a Property Management Business in Arizona

When starting your own property management business, it’s important to determine the costs of your entire procedure, from the start-up until your operations. Things like one-time fees, startup costs, and ongoing expenses that you need to cover should be deeply discussed with your agent if you have one. 

The LLC filing fee in Arizona is $50. If you start a corporation, the incorporation fee in Arizona is $60 for filing in-person and by mail. The annual report filing fee in Arizona for LLCs is $0. 

Getting the right insurance when starting out as a professional property manager is crucial to safeguard your company, yourself, and the properties you look after for other people.

Additionally, you might try applying for a government grant and obtaining a loan from a bank or a family member; however, you must be ready with a strong business plan and written payback terms. Company credit cards can also aid with purchases and fast cash flow, but be mindful of interest rates.

Why Start a Property Management Business in Arizona

  1. Growing demand: With an increasing number of people moving to Arizona, property owners are in need of professional property managers to handle their investments, resulting in a growing market for your services.
  2. Recurring income: Property management businesses generate consistent monthly income through management fees, allowing for predictable cash flow and financial stability.
  3. Low startup costs: Property management has relatively low startup costs compared to other businesses, as you don’t need a physical office space or significant inventory to get started.
  4. Potential for expansion: As your client base grows, so does the potential for expanding your business into other areas of real estate such as sales or development.
  5. Diverse clientele: Property management businesses in Arizona can cater to a wide range of clients, from individual property owners to large corporations and investment firms, providing you with a diverse customer base.
  6. Flexibility: Running your own property management business allows you to set your own schedule and work at your own pace.
  7. Resilience to economic fluctuations: Property management businesses are generally less affected by economic downturns, as people will always need housing, making it a relatively stable industry.
  8. Opportunities for networking and collaboration: Establishing relationships with other industry professionals, such as real estate agents, contractors, and legal experts, can lead to new business opportunities and referrals, helping to grow your business.
  9. Increasing property values: As Arizona continues to develop and attract new residents, property values will likely increase, providing potential long-term financial benefits for you and your clients.
  10. Personal satisfaction: Running a successful property management business in Arizona allows you to make a meaningful impact on your clients’ lives and the broader community by providing well-maintained, safe, and comfortable housing options for residents.


What are the licensing requirements for starting a property management business in Arizona?
In Arizona, property managers must obtain a license from the Arizona Department of Real Estate (ADRE). You must pass the ADRE state licensing exam, submit an application, and pay a licensing fee.
What type of experience do I need to start a property management business in Arizona?
Property managers in Arizona must have a minimum of two years of real estate experience, a high school diploma, or a qualifying equivalent.
What type of property management services can I provide in Arizona?
Property management services in Arizona include tenant screening, rent collection, maintenance and repairs, financial reporting, lease negotiations, and evictions.
Are there any legal requirements for property management businesses in Arizona?
Property management businesses in Arizona must comply with all state and local laws, including tenant-landlord laws, fair housing laws, and other regulations.
What is the Arizona Tenant-Landlord Act?
The Arizona Tenant-Landlord Act is a set of laws that govern tenant-landlord relationships in Arizona. These laws cover areas such as rent increases, security deposits, eviction notices, and more.
What is the Fair Housing Act in Arizona?
The Fair Housing Act in Arizona prohibits discrimination in housing based on race, color, national origin, religion, sex, family status, and disability. This includes rental and sales transactions, advertising, and lending.
What is the law on security deposits in Arizona?
In Arizona, landlords can collect a security deposit of up to two months’ rent, and must return the deposit within 14 days after a tenant moves out.
What is the law on evictions in Arizona?
In Arizona, a landlord must provide a tenant with a five-day written notice to vacate the premises before filing for eviction. The tenant has the right to cure the breach or dispute the notice within that five-day period.
Are there any restrictions on rent increases in Arizona?
Yes, in Arizona, landlords must provide tenants with at least 30 days’ notice before increasing the rent.
What fees can a property management business charge in Arizona?
Property management businesses in Arizona can charge a variety of fees, including management fees, tenant screening fees, and late payment fees.
What type of insurance do I need to start a property management business in Arizona?
Property management businesses in Arizona must obtain general liability insurance, as well as property, workers’ compensation, and professional liability insurance.
Are there any local laws that govern property management businesses in Arizona?
Yes, in addition to state laws, many local jurisdictions in Arizona have their own laws and regulations for property management businesses.
What are my responsibilities as a property manager in Arizona?
As a property manager in Arizona, you have a duty of care to act in the best interest of the owners and tenants. This includes collecting rent, maintaining the property, and resolving tenant disputes.
Are there any tax considerations for property management businesses in Arizona?
Yes, property management businesses in Arizona must comply with all local, state, and federal tax laws, including income taxes, payroll taxes, and sales taxes.
What are the laws on tenant screening in Arizona?
In Arizona, landlords can run tenant background checks, but must follow all state and federal laws. Landlords must also provide tenants with a copy of their tenant screening report.
What is the Arizona landlord-tenant mediation program?
The Arizona landlord-tenant mediation program is a free program that provides mediation services to landlords and tenants who are having disputes. It is available to all landlords and tenants in Arizona.
How do I find tenants for my property in Arizona?
There are a variety of ways to find tenants for your property in Arizona, including online listings, local newspapers, and networking with local real estate agents.
What is the Arizona Residential Landlord and Tenant Act?
The Arizona Residential Landlord and Tenant Act is a set of state laws that govern the rental of residential property in Arizona. This includes the rights and responsibilities of both landlords and tenants.
Are property management services taxable in Arizona?
Yes, property management services in Arizona are subject to sales tax. Property managers must collect and remit the applicable sales tax to the Arizona Department of Revenue.
What are the laws on tenant abandonment in Arizona?
In Arizona, a tenant is considered to have abandoned the premises if they have vacated the property without notifying the landlord and have not paid rent for at least seven days.
Are there any restrictions on tenant fees in Arizona?
Yes, in Arizona, landlords cannot charge tenants an application fee or an administration fee.
What are the laws on tenant notices in Arizona?
In Arizona, landlords must provide tenants with a written notice at least 30 days before terminating a tenancy.
What is the Arizona Security Deposit Return Act?
The Arizona Security Deposit Return Act is a law that requires landlords to return a tenant’s security deposit within 14 days after they move out.
What are the laws on subletting in Arizona?
In Arizona, tenants must have the written consent of the landlord before subletting the premises. The tenant is still responsible for any damages caused by the subtenant.
Are there any restrictions on tenant evictions in Arizona?
Yes, in Arizona, landlords must provide tenants with a five-day written notice to vacate the premises before filing for eviction.
What are the laws on maintenance and repairs in Arizona?
In Arizona, landlords must provide and maintain the premises in a safe and habitable condition. They must also make all necessary repairs in a timely manner.
What is the Arizona Landlord-Tenant Act?
The Arizona Landlord-Tenant Act is a set of laws that govern landlord-tenant relationships in Arizona. This includes rights and responsibilities for both landlords and tenants.
What are the legal requirements for operating a property management business in Arizona?
Property managers in Arizona must comply with all applicable state and local laws, including laws related to tenant-landlord relations, health and safety, and fair housing. Additionally, property managers must be familiar with Arizona landlord-tenant laws and other regulations governing their industry.
Is there a requirement for continuing education for property managers in Arizona?
Yes, property managers in Arizona must complete continuing education each year in order to maintain their real estate license. The Arizona Department of Real Estate provides information about the continuing education requirement and other requirements for property managers.
What type of insurance should a property manager in Arizona carry?
Property managers in Arizona should carry at least general liability insurance, as well as errors and omissions insurance. Property managers should also consider purchasing additional insurance coverage, such as cyber liability and workers’ compensation, depending on the services they offer.
How do I find tenants for a property managed in Arizona?
Property managers in Arizona can use a variety of strategies to find tenants, including advertising on local websites and social media, attending local job fairs, and working with real estate agents. Additionally, many property managers in Arizona are members of local and national real estate associations, which can provide access to rental listings and potential tenants.
What are the common fees associated with property management in Arizona?
Common fees that property managers in Arizona may charge include a set-up fee, a management fee, a tenant placement fee, an eviction fee, and a leasing fee. Property managers may also charge additional fees for services such as maintenance and repairs.
What type of technology do property managers in Arizona use?
Property managers in Arizona use a variety of technology to manage their properties, including software for accounting, tenant screening, and leasing. Additionally, many property managers in Arizona use online portals to allow tenants to pay rent and submit maintenance requests.

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In an expanding market, learning how to launch a property management firm in Arizona can be a low-risk, high-reward endeavor. There may be few entry barriers and inexpensive startup costs for this profession. All things considered, for the right businessperson, launching a property management firm in Arizona may be a satisfying and successful endeavor. The LLCBuddy Editorial Team recommends that you must take legal consultation before starting any business in Arizona.

About Author & Editorial Staff

Steve Goldstein, founder of LLCBuddy, is a specialist in corporate formations, dedicated to guiding entrepreneurs and small business owners through the LLC process. LLCBuddy provides a wealth of streamlined resources such as guides, articles, and FAQs, making LLC establishment seamless. The diligent editorial staff makes sure content is accurate, up-to-date information on topics like state-specific requirements, registered agents, and compliance. Steve's enthusiasm for entrepreneurship makes LLCBuddy an essential and trustworthy resource for launching and running an LLC.

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