Property Management
Three items, essentially all of rule 481-Chapter 2015 read together with the trust account rules. Property management is licensed activity in Iowa - section 543B.3(6) reaches anyone who collects or agrees to collect rent for the use of real estate - and there is no separate property manager registration.
The Written Agreement
Rule 481-2015.1 bars a licensee from renting or leasing real estate, negotiating or offering to negotiate a rental, listing property for lease, or showing property to prospective renters unless the licensee's broker holds a current written property management agreement or other written authorization signed by the owner or the owner's authorized agent. Rule 481-2015.1(1) lists the contents: proper identification of the property; all terms and conditions and the powers given to the broker; when the broker remits income and provides written statements of income and expenses, which must be no less often than annually; which property expenses the broker pays to third parties; the fee or commission and when it is paid; the amount of security deposits and prepaid rents held by broker or owner; the effective date; the terms for termination by either side; and the signatures of the broker and the owner. A legible copy goes to the owner when the signature is obtained. A licensee managing a property may act as agent in its sale only if the management agreement specifically grants that authority and contains all the elements of a listing under rule 481-2011.1, or a separate listing agreement is secured.
Handling the Money
Funds received on the owner's behalf go into a broker-controlled trust account no later than five banking days after receipt. Property management and rental receipts may be held in a trust account separate from real estate transaction funds, and if separately maintained it need not be interest-bearing; if it is interest-bearing, the interest goes quarterly to the state unless there is a written agreement paying it to the property owner, and the property manager never receives or benefits from it. Records include a per-tenant ledger identifying the rental unit and security deposit and an owner's ledger for all properties owned by each owner, with disbursements documented by bids, contracts or invoices. Rule 481-2015.1(7) bars issuing a check before sufficient funds are in the owner's account, bars withdrawing more than the owner's remaining credit balance, requires transfers between an owner's accounts to be done by billings and receipts rather than ledger entries alone, and keeps conditionally refundable deposits in trust until refunded or accrued to the owner. Management fees are withdrawn from the owner's account at least once a month unless the agreement says otherwise, identified by property or account number, and deposited into the broker's business operating account - never paid directly from the owner's trust account to the broker.
Termination and Transfer
Rule 481-2015.1(5) governs the wind-down. The manager terminates management activity as the agreement provides, notifies the owner and all tenants, and provides the owner with any unobligated funds due not later than 30 days after the effective date of termination and a final accounting not later than 60 days after it - the accounting to cover the owner's ledger account, the amount of any obligated funds still held in the client trust account, why they are held, and when and to whom they will be disbursed. Unobligated funds may be disbursed only to the owner, or with the owner's proper written authorization to another property manager the owner designates in writing. Each tenant must immediately be told that the conditionally refundable deposit is being transferred to the owner or to a new manager, with that party's name and address. Tenant deposits may not be spent on expenses or fees the lease does not allow, and where a tenancy ends at or before the management termination the licensee completes any final accounting or inspection required by the lease, by the Uniform Residential Landlord and Tenant Law or the Mobile Home Parks Residential Landlord and Tenant Law, or by the management agreement, unless the owner directs otherwise in writing.
Keep going: the full Iowa Real Estate Broker guide covers every section of the exam. Iowa Real Estate Broker Exam Study Guide (2026) — PDF + EPUB, $19.99 · 14-day refund →
State-specific details
State exam facts
- State regulator
- Iowa Real Estate Commission (DIAL)
- Exam vendor
- PSI
- Scored questions
- 115
- Time limit
- 180 minutes
Who regulates real estate brokers in Iowa?
The Iowa Real Estate Commission, now within the Department of Inspections, Appeals, and Licensing (DIAL), licenses brokers and salespersons. The Commission contracts with PSI to deliver the exams.
What experience do I need before the Iowa broker exam?
Iowa Code § 543B.15(7) requires 24 months as a licensed salesperson actively engaged in real estate (or substantially equal experience) plus 60 contact hours of Commission-approved broker education completed within the 24 months before the broker exam — on top of the salesperson pre-license course.
How is the Iowa broker exam structured?
PSI bulletin 120 sets the broker exam at 115 scored questions in 180 minutes: a 75-question national portion scored to 80 points (pass 60 points, 120 minutes) and a 40-question Iowa portion worth 40 points (pass 30, 60 minutes). Both portions must be passed. The national portion is scored by points because some national broker items are worth two points.
Sources: https://dial.iowa.gov/licenses/other-professional-licensure/real-estate-licensees, https://test-takers.psiexams.com/api/content/bulletin/120
In the Iowa Real Estate Broker guide: A 60-question national practice exam, with a key that explains all four options and not just the right one. Practice here stays free.