Arkansas Real Estate Practice Exam 2025 – Comprehensive Prep Guide

A property manager cannot use tenant security deposits at their discretion because it is money that belongs to the tenant and is meant to be held as a security in case of any damages or unpaid rent. Option C is incorrect because a property manager is not required to return the deposit immediately upon request, as they are allowed to use it for specific expenses only. Option D is incorrect because a property manager must deposit the security deposit into a separate account, not their personal account, in order to properly account for and protect the tenant's funds. Option A is also incorrect because, as mentioned before, a property manager cannot use the security deposit at their discretion. The correct answer, B, is the option that best describes the purpose and rules surrounding tenant security deposits.