If you’re a licensed property manager in Utah—or a landlord working with one—you need to understand the rules established by the Utah Division of Real Estate. These rules govern nearly every aspect of property management, including how trust accounts are handled, how advertisements are published, and what supervision is required.
Even well-meaning violations can lead to audits, fines, or license suspension. Below is a breakdown of key compliance areas every property manager should keep in mind.
Trust Account Compliance
Trust account violations are one of the most common sources of enforcement actions. Utah Admin. Code R162-2f-401c requires that licensed property managers deposit all client funds (rent, security deposits, reimbursements) into a properly maintained trust account. These accounts must:
- Be separate from personal or business operating funds
- Be registered with the Division
- Have clear, itemized records showing every transaction by client or property
Failure to maintain proper records, use personal apps like Venmo or Zelle, or deposit funds into personal accounts can trigger investigations. See our full post: Utah Property Manager Payment Rules: Cracking Down on Personal Venmo and Zelle Use.
Advertising Rules
According to R162-2f-401a, all advertising by property managers must include:
- The name of the brokerage
- Disclosure of licensure status (e.g., “licensed real estate agent”)
- No misleading claims or promises
This includes online listings, social media posts, and yard signs. Property managers cannot make guarantees about rent prices, tenant quality, or investment returns without clear justification.
Required Disclosures
Property managers are required to disclose their licensed status and role in any transaction where they have a personal interest. For example, if a manager or their relative is renting or buying a property, that relationship must be disclosed in writing.
Additionally, managers must provide full disclosure to property owners about any compensation received from third parties (e.g., maintenance kickbacks or referral fees).
Broker Supervision
Every licensed property manager must work under the supervision of a principal broker. Brokers are ultimately responsible for:
- Approving advertising
- Overseeing trust account activity
- Ensuring proper training and compliance
If a broker fails to supervise properly, both the manager and the brokerage can face disciplinary action.
Staying Compliant in 2025 and Beyond
The Utah Division of Real Estate has made it clear: enforcement efforts are ramping up. In 2025, the Division is focusing on unlicensed activity, trust account violations, and poor broker oversight. Property managers who ignore these rules risk their license and their livelihood.
For more insights into enforcement trends, read:
Utah Rule Changes and Disciplinary Trends: What Landlords and Agents Should Watch in 2025
When Property Management Becomes a Legal Liability in Utah
Need Help Complying with Utah Property Management Rules?
At Duckworth Legal Group, we help landlords and property managers across Utah understand their legal obligations and avoid compliance pitfalls. Whether you’re navigating trust account issues or unsure if your advertising is compliant, we can help.
Call 801-882-7444 or email us to schedule a consultation.