When You Hire a Property Manager, You’re Putting a Lot of Trust in Them
And under Utah law, that trust isn’t just moral—it’s legal.
Property managers who operate under a management agreement owe their clients fiduciary duties. These are among the highest legal duties recognized under the law, requiring honesty, loyalty, accountability, and care.
When these duties are breached, landlords can face financial harm—and property managers may face legal consequences.
What Is a Fiduciary Duty?
A fiduciary duty is a legal obligation to act in the best interests of another party. For Utah property managers, this means putting the landlord’s interests first, avoiding conflicts of interest, and managing the property with diligence and transparency.
Fiduciary obligations arise under common law, but are also reflected in Utah’s administrative rules for real estate professionals.
Key Duties Property Managers Owe Landlords in Utah
- Loyalty – Property managers must avoid self-dealing, kickbacks, or steering business to affiliated companies unless fully disclosed and authorized.
- Disclosure – They must keep landlords informed about material issues affecting the property, such as tenant disputes, maintenance problems, or legal violations.
- Accounting – Managers must accurately track and report all income and expenses, maintain trust accounts properly, and provide detailed monthly statements.
- Care – They’re expected to act with reasonable skill and prudence—such as timely repairs, proper tenant screening, and legal compliance.
- Confidentiality – Sensitive information shared by the landlord must be protected, even after the relationship ends.
What Happens When These Duties Are Violated?
Breaches can take many forms:
- Withholding repair invoices or financial reports
- Overbilling for services or fabricating expenses
- Failing to screen tenants properly or follow fair housing laws
- Allowing lease violations to persist without action
These actions can expose the property owner to financial loss—and expose the manager to civil liability, license discipline, or even criminal charges.
What Can Utah Landlords Do?
If you suspect your property manager is breaching fiduciary duties:
- Request detailed records immediately (Utah rules require delivery upon demand)
- Document everything, including emails, statements, and receipts
- Review your management agreement for termination or dispute resolution clauses
- File a complaint with the Utah Division of Real Estate if violations are serious
- Consult with legal counsel before terminating or pursuing damages
For a deeper dive into red flags and legal remedies, see When Property Management Becomes a Legal Liability in Utah.
Final Thoughts: Trust Is Earned—And Enforceable
Property managers play a critical role in preserving the value of your investment. But with that role comes real legal responsibility. If your manager isn’t fulfilling their fiduciary obligations, you don’t have to tolerate it—and you may be entitled to compensation.
If you’re concerned about misconduct or need help enforcing your rights, contact Duckworth Legal Group. Call (801) 882-7444 or email info@duckworthlegalgroup.com to get experienced guidance.