To whom does a property manager owe his or her fiduciary duties?

A property manager owes fiduciary duties primarily to the property owner. This relationship is rooted in trust and responsibility, whereby the property manager is expected to act in the best interests of the owner regarding the management of the property. Fiduciary duties include loyalty, obedience, disclosure, confidentiality, accounting, and care, all focused on maximizing the owner's investment and ensuring that the property is managed effectively.

The property manager must prioritize the owner's goals and needs over those of tenants or any other parties, which is essential for maintaining a successful landlord-tenant relationship. While managing properties, the property manager must inform the owner about relevant issues, financial performance, and operational matters, ensuring that the owner's interests remain at the forefront of all management activities. This fiduciary relationship is formalized through a management agreement and is fundamental in real estate practices, particularly in Arizona.