Utah Property Managers Must Now Be Licensed
If you hire someone to manage your rental property—or if you manage property for others—you need to pay attention. Utah now requires a license for most property managers.
Thanks to House Bill 337, which takes effect in 2025, the Real Estate Commission gains authority to regulate property managers. This change affects landlords, real estate professionals, and independent managers across the state. The days of operating in a legal gray area are over.
Who Was Exempt Before?
Previously, property managers didn’t need a license as long as they avoided tasks reserved for licensed real estate agents. Many could legally collect rent, coordinate maintenance, or market rental units without any formal oversight—so long as they weren’t negotiating leases or selling property on behalf of others.
This loophole has now closed. Under HB 337, if you manage real estate for someone else and get paid for it, you must get licensed.
Who Needs a License Now?
In most cases, anyone managing rental property on behalf of someone else for compensation will need a license. That includes:
- Leasing agents
- On-site managers handling tenant issues
- Property management firms
- Real estate agents managing other people’s rentals
Licensed Utah real estate brokers and agents can obtain a property manager license without additional education or exams, but they still need to apply.
Are There Any Exemptions?
Yes, but they are narrow. You may not need a license if:
- You manage your own property
- You qualify under specific bonding or insurance exemptions
- You fall into a narrowly defined category (to be clarified in upcoming administrative rules)
Until those rules come out, it’s safest to assume that licensure is required.
What Will Licensing Require?
The Real Estate Commission must now create and enforce rules for property managers. These rules will likely include:
- Minimum qualifications
- Application procedures
- Trust account handling and bonding requirements
- Recordkeeping standards
- Disciplinary enforcement procedures
If you plan to manage property for others, expect strict accountability. You’ll need to keep records, separate client funds, and meet licensing deadlines.
For more on how small oversights can cause big problems, see our article: Utah Personal Property Notice Requirements for Former Tenants
Why This Matters for Landlords
Hiring an unlicensed manager could expose you to unnecessary risk. You may not even realize the person you hired is out of compliance—until it’s too late.
If you manage properties for others as a side hustle, you’ll need to become licensed or stop offering those services.
Landlords who ignore these rules risk fines, revoked licenses, and possible litigation. Compliance isn’t optional anymore—it’s the law.
Want to stay out of trouble? Start with our guide: Avoiding Costly Eviction Mistakes: A Guide for Utah Landlords
Final Thoughts
House Bill 337 signals a major shift in how Utah regulates the property management industry. The Real Estate Division now has clear authority—and they will use it.
If you’re unsure whether you or your manager is in compliance, now is the time to find out.
Duckworth Legal Group helps landlords and property managers navigate Utah’s evolving legal landscape. We’ll make sure you’re licensed, informed, and protected.
Call to Action:
Have questions about property management licensing or compliance? Contact Duckworth Legal Group today.
Call (801) 882-7444 or email info@duckworthlegalgroup.com