|Question and Answer|
Question: To practice property management or be a property manager must you have or work under a brokers license? Submitted by Melody
Response: Melody, The answer to your question depends if you managing your own property or management of properties for third parties. You need to have a R.E. License for 3rd parties.
It does not have to be a broker license but you license must be under a broker. Resident Managers are also exempt.
You should also consider taking courses in property management at a Community College or the Institute of Real Estate Management. There web page is www.irem.org.
Question: We won a multi family in NH we moved out of it 2 years ago we now want to sell it. Do we have to pay the capital gains tax? Submitted by Barbara
Response: Yes, you would have to pay capital gains tax unless you do a 1031 exchange. You do not get the $250,000 each personal exemption for Multi Family, as it only applies to your personal residence. If this was a duplex you could move back in and probably be able to claim the exemption for one unit. Hope this answers your question.
Question: A prospective tenant signed a lease, but didn't have enough money for rent and security deposit until payday. They wanted me to take a postdated check and move-in some of their things early. I refused as I've always heard to accept only a certified or cashier check before allowing the tenant to move-in.
What should I have done differently? Submitted by Jeanne ( Hemet, CA )
Response: You made the correct decision. Allowing tenants to take possession by moving in items and giving them the keys gives them the rights of a tenant.
This means you would have to 3-day them and take them to court on an eviction if the post-dated check was no good. I usually tell a tenant in this situation to give the postdated check to a relative or friend for cash and then purchase a cashier's check to give to the property manager.
Question: What is meant by CAMs in real state leasing terms? Submitted by Darlene
Response: CAMS are the common area maintenance charges such as real estate taxes, insurance, repairs to common area such as parking lot, graffiti removal, landscaping, outside utility costs, sweeping service etc.. These are usually charged back to the commercial tenant on a monthly basis depending on their share of the building area.
For example if there is a 10,000 square feet of building area in the shopping center and the individual tenant rents 1,000 square feet the CAM billing would be 10% of the total CAM charges being billed to the tenant plus their basic monthly rent.
Question: Can the onsite manager be classified as an independent contractor so I only have to pay a gross check each month and avoid withholding social security, worker's comp. etc. and also avoid all the paperwork and cost ? Submitted by Marlo Valle
Response: NO. The onsite manager is an employee and cannot be classified as an independent contractor.
The IRS has a 20 question test on what constitutes an independent contractor covering such areas as supervising control, control, place of work, tools, hours, reports, expenses, service to public etc.
Leaving no doubt that an onsite manager is an employee.
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