 |
ARIZONA STATE SENATE
Fifty-Fourth Legislature, Second Regular Session
AMENDED
property management records; residential rentals
Purpose
Outlines related documents that a property management firm must store for the specified time frame. Requires a property management firm to keep required records in the broker's main office, electronically or at an off-site storage location in Arizona.
Background
Property management firms must keep a residential rental agreement and related documents for one year from the expiration of the rental agreement or until the documents are given to the owner upon termination of any property management agreement. The records must be kept at the broker's main office or at an off-site storage location in Arizona if the broker provides prior written notice of the storage location to the Arizona Department of Real Estate.
Current statute also requires a property management firm to keep: 1) property management agreements; 2) all financial records pertaining to clients; 3) a broker's delegation of authority to sign nonresidential rental agreements; 4) nonresidential real estate agreements and transaction folders; and 5) on-site residential rental transaction folders (A.R.S. § 32-2175).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Specifies that related documents, which a property management firm must keep for one year after the expiration of the rental agreement or until the records are provided to the property owner at the termination of the property management agreement, includes:
a) rental applications with tenant-identifying information;
b) move-in forms;
c) animal records; and
d) default notices.
2. Includes lease amendments and addenda in the requirement that a property management firm must keep a residential rental agreement for the specified time frame.
3. Directs a property management firm to keep the following required records in the broker's main office, electronically or at an off-site storage location in Arizona:
a) all financial records pertaining to clients;
b) a broker's delegation of authority to sign nonresidential rental agreements;
c) property management agreements;
d) nonresidential real estate lease agreements and transaction folders; and
e) on-site residential rental transaction folders.
4. Allows property management firms to electronically keep rental agreements, related documents and records of finder fees paid to tenants.
5. Deems a multi-family leasing office to be an off-site storage location for the purpose of keeping outlined records.
6. Makes technical and conforming changes.
7. Becomes effective on the general effective date.
Amendments Adopted by Committee
1. Specifies that rental applications must have tenant-identifying information.
2. Removes the requirement that a property management firm keep identification documents and replaces property inventories and pet permits with move-in forms and animal records.
3. Outlines other required records that a property management firm must keep in the broker's main office, electronically or at an off-site storage location in Arizona.
4. Specifies that a multi-family leasing office is considered an off-site storage location.
Senate Action
COM 1/23/20 DPA 5-0-3
Prepared by Senate Research
January 24, 2020
LB/JDP/gs