Arkansas Real Estate License Leases and Property Management 2 — Questions and Answers
Question 1: In Arkansas, the maximum security deposit a landlord may charge for an unfurnished residential unit is:
- Two months' rent
- One month's rent
- Three months' rent
- There is no statutory limit (Correct answer)
Correct answer: There is no statutory limit
Arkansas has no statutory cap on residential security deposits, leaving the amount to negotiation between landlord and tenant.
Question 2: Under Arkansas law, within how many days after a tenant vacates must the landlord return the security deposit or provide an itemized statement of deductions?
- 60 days (Correct answer)
- 14 days
- 30 days
- 45 days
Correct answer: 60 days
Arkansas law requires landlords to return the security deposit or send an itemized list of deductions within 60 days of the tenant vacating.
Question 3: What is the primary duty of a property manager acting as an agent for a property owner?
- To act in the best interests of the owner while complying with all applicable laws (Correct answer)
- To maximize occupancy regardless of tenant qualifications
- To minimize expenses without regard for tenant satisfaction
- To generate commission income from lease renewals
Correct answer: To act in the best interests of the owner while complying with all applicable laws
A property manager owes a fiduciary duty to the owner, requiring loyalty, care, and lawful management of the property on the owner's behalf.
Question 4: Which of the following would be considered normal wear and tear in a residential rental, allowing a tenant to receive their full security deposit back?
- Small nail holes from hanging pictures (Correct answer)
- Large holes in the drywall
- Pet stains on the carpet
- Broken window glass
Correct answer: Small nail holes from hanging pictures
Small nail holes from hanging pictures are considered normal wear and tear and cannot be deducted from a security deposit.
Question 5: A property management agreement between an owner and a property manager creates which type of legal relationship?
- Principal-agent (agency) relationship (Correct answer)
- Joint venture partnership
- Independent contractor with no fiduciary duty
- Employer-employee relationship only
Correct answer: Principal-agent (agency) relationship
A property management agreement creates an agency relationship in which the property manager acts as agent for the owner (principal).
Question 6: In Arkansas, a real estate license is required to perform which property management activity?
- Leasing or renting property for others for compensation (Correct answer)
- Performing maintenance on rental units
- Collecting rent on behalf of an owner as a salaried employee
- Managing personally owned rental properties
Correct answer: Leasing or renting property for others for compensation
In Arkansas, leasing or renting property on behalf of others for compensation requires a real estate license issued by AREC.
Arkansas Real Estate License Leases and Property Management 2
In Arkansas, the maximum security deposit a landlord may charge for an unfurnished residential unit is: