In Mississippi, does my property manager need to be licensed if I own the property he is managing and he is a salaried employee? Can a contract employee be considered a salaried employee?
In Mississippi, property managers need to have a real estate broker’s license. There are however, exemptions to this law. Bona fide owners of property and their salaried employees who are engaged in property management in the regular course of business are exempt.
The type of employee matters, the employer must submit a W-2, not a 1099, for income reporting and withhold tax and social security. Additionally, the employee should be paid a specific salary over a set time period. You can also contact the Mississippi Real Estate Commission for more information.
This is a matter of state law—and the rules do vary between states. Contact your state real estate commission to ask.
I usually find that it’s best to talk to someone in the Enforcement Division or the Legal Division, as there are legal nuances (such as the difference between a contract employee and a salaried employee), that only someone legal expertise can answer. Also, ask to get an answer in writing, such as in an email.
As always, don’t consider this legal advice. Before taking any action, consult with an attorney licensed in your state.
A special thank you to Robert Praytor, from the Mississippi Real Estate Commission, for his assistance with this article.
Author of the Landlord Chronicles blog, Tracey March provides stories and “lessons learned” from her experience as a self-managed rental property owner. She helps owners decide if partnering with a property management company is beneficial.