Property Management, Leasing Agents, and Fees

Definition

Fees paid to the firms and agents that run a property day to day and find tenants, usually a percentage of collected rent plus leasing commissions, which are paid from operating income before debt service and distributions. Leasing agents for covered residential properties may not refuse to rent, or discriminate in rental terms, on protected grounds^[1], and fees paid in a trade or business to a non-employee can trigger federal information reporting^[2].

Federal law

Formed under state law. No Act of Congress creates it; the federal laws below apply to it as described.

1. Civil Rights Act of 1968, Title VIII (Fair Housing Act), Pub. L. 90-284, title VIII, § 804, 82 Stat. 73 (42 U.S.C. § 3604). Prohibits discrimination in the rental of dwellings (Fair Housing Act § 804, 42 U.S.C. § 3604). Official text: govinfo.gov, U.S. Government Publishing Office.
2. Internal Revenue Code of 1954, Pub. L. 83-591, ch. 736, § 6041, 68A Stat. 3 (26 U.S.C. § 6041). Requires information returns for payments made in the course of a trade or business (26 U.S.C. § 6041); threshold since raised by Pub. L. 119-21 § 70433. Official text: govinfo.gov, U.S. Government Publishing Office.