A Good Property Manager Can Save Time—A Bad One Can Cost You Everything
Many Utah landlords count on property managers to simplify operations. But too often, they assume that outsourcing responsibility means escaping liability. That’s a costly assumption.
Landlords can still face legal consequences for their manager’s mistakes. If your property manager violates the law, ignores compliance standards, or mismanages funds, you may be held accountable.
This post explains how property management relationships go wrong—and what you can do to stay protected.
Utah’s New Licensing Law Raises the Stakes
In 2025, Utah began requiring most property managers to hold a license. If you pay someone to collect rent, handle maintenance, or lease your property, they’re likely subject to this new law.
Ignoring the rule—or hiring someone who does—puts you at risk. For details, read:
New Utah Law Requires Licensure for Property Managers in 2025
Common Ways Property Management Becomes a Liability
Here are the most frequent problems I see in Utah landlord cases involving third-party managers:
- Improper notice service. Managers often mishandle notice delivery, which can derail evictions and create legal delays.
- Trust account violations. Some managers mix client funds with operational money, delay owner payments, or keep sloppy records.
- Unlicensed management. If your manager is performing services that require a license, you could be sharing the violation.
- Fair housing errors. Even if a manager discriminates without your knowledge, you could face liability under federal or state law.
- Missing or vague documentation. Weak leases, poor inspection reports, and incomplete notices can hurt you in court.
To understand why service errors matter so much, read:
How to Properly Serve Landlord Notices in Utah: A Legal Guide
Landlords Still Have Legal Duties—Even With a Manager
Hiring a property manager shifts some tasks, but not your legal obligations. Courts expect landlords to remain involved and exercise oversight.
You should:
- Hire managers with valid Utah licenses
- Use a written management agreement with clearly defined roles
- Review trust account activity on a regular basis
- Monitor tenant complaints and step in when necessary
- Replace managers who don’t follow the law
Turning a blind eye won’t protect you if things go sideways.
Tips to Protect Yourself
If you’re using—or considering—a property manager in Utah, follow these guidelines:
- Confirm licensure with the Utah Division of Real Estate before signing a contract
- Request financial reports monthly and audit them periodically
- Require pre-approval for notices, evictions, and lease changes
- Set spending limits and require written bids for repairs
- Keep duplicate records of leases, notices, inspections, and payments
These habits don’t just reduce risk—they strengthen your legal position if problems arise.
Final Thoughts
Property management can be an asset—or a liability. Delegating tasks doesn’t mean giving up responsibility. In Utah, you remain accountable for how your properties are managed, even if someone else is doing the work.
If you’re not confident in your manager’s legal compliance, or if you need help reviewing agreements and oversight protocols, Duckworth Legal Group can help.
Call (801) 882-7444 or email info@duckworthlegalgroup.com before someone else’s mistake becomes your problem.