Utah’s 2027 property management licensing rule: what owners should know
From January 1, 2027, firms that manage residential property for others in Utah must operate under a licensed principal broker or principal property manager. What changes, who is exempt, and what to ask your manager.
By the Ekot team · November 9, 2026 · Reviewed by Esther Jackson-Stowell, Principal Broker
What is changing
Utah has long treated managing residential property for others, for compensation, as a licensed real estate activity. Legislation enrolled in 2026 tightens how that is enforced: from January 1, 2027, a property management company must be registered with, and supervised by, a dual broker, principal broker or principal property manager. Owners who manage their own property remain exempt, as do salaried employees of an owner.
Why it matters to you
A licensed principal broker is personally accountable to the Utah Division of Real Estate for trust accounting, advertising and fair dealing. If your manager is an unlicensed individual or an LLC with no broker attached, your deposits and rent are being handled outside that supervision. The new rule gives you a simple question to ask any manager in 2027: who is your principal broker, and what is the licence number?
Trust accounts and your money
Licensed brokerages must hold security deposits and rent in trust accounts, reconcile them, and account for every dollar on request. That is the single largest protection the licence buys an owner, and it is the reason the rule exists.
How Ekot is set up
Ekot operates under a licensed principal broker today, with trust accounting, written agreements and portal reporting already in place. Nothing about our service changes in 2027. If you are with a manager who will need to restructure, our Switch to Ekot page shows how a handover works without disturbing your residents.
This article is general information about Utah rules as enacted, not legal advice. Confirm your situation with the Division of Real Estate or an attorney.
General information for Salt Lake Valley owners and residents, not legal, tax or lending advice. Figures are dated and sourced where given. Reviewed by Esther Jackson-Stowell, Principal Broker.
