December 7, 2025
Landlords 1099 Requirements Explained: Contractors, Property Managers & More
Landlord 1099 Requirements Explained: Contractors, Property Managers & More
Landlords operating rental properties are considered business owners, and like any business owner, landlords may need to issue 1099s for certain payments throughout the year.
Unfortunately, most landlords don’t learn these rules until tax time, when their CPA asks for contractor totals and W-9 forms. This article covers the essentials so rental property owners can stay compliant, organized, and prepared — not scrambling in January.
If you’re new to 1099 reporting, you may want to start with our foundational guide:
1099 Filing Requirements Explained: What Every Small Business Owner Needs to Know
⭐ Do Landlords Need to Issue 1099s? Yes — In Most Cases.
The IRS generally considers rental activities a trade or business, meaning the same 1099 rules that apply to small businesses apply to landlords.
(See: IRS Publication 535)
As a landlord, you must issue a 1099-NEC or 1099-MISC when:
- You paid someone $600 or more during the year
- The payment relates to your rental activities
- The vendor is not taxed as a corporation
- The payment method requires you to report (check, ACH, Zelle, cash, etc.)
⭐ Who Landlords Must Send 1099s To
Common vendors who require 1099s when paid $600+:
✔ Contractors & Trades
Plumbers, electricians, HVAC techs, painters, roofers, handymen, landscapers.
✔ Cleaning Services
Turnover cleaners, move-in/move-out cleaners, STR cleaning teams.
✔ Property Care Providers
Pest control, pool maintenance, chimney cleaning, septic services.
✔ Independent Professionals
Bookkeepers, VAs, maintenance coordinators, marketing support.
If they perform services for your rental business, they likely require a 1099.
If you’re unsure about an LLC vendor, see: Do LLCs Get 1099s? How to Tell When an LLC Does (and Doesn’t) Need a 1099
⭐ Landlords Almost Always Forget This One: Property Managers
Property managers coordinate tenant issues, repairs, and subcontractors — creating confusion about who files which 1099.
The rule is clear:
If you pay a property manager, YOU do NOT issue 1099s to the subcontractors they hire.
The property manager is responsible for:
- Gathering W-9s
- Tracking vendor payments
- Issuing 1099s to vendors
- Providing YOU with an annual statement
However…
If you pay a vendor directly — even once — YOU must issue that 1099.
If you rely on both a property manager and direct vendor payments, review this related guide: How to Pay Contractors Without Triggering 1099 Requirement (Legally)
⭐ Corporations and Exceptions: When Landlords Do NOT Issue 1099s
You do not issue 1099s to vendors taxed as:
- S corporations
- C corporations
- Large national service providers (who provide corporate W-9s)
Verify classification via the W-9.
IRS Form W-9
But even corporations must receive 1099s for:
- Attorney payments
- Medical and healthcare payments
See: IRS 1099-MISC Instructions
⭐ Special Considerations for Short-Term Rental (STR) Owners
STR owners often have more vendor relationships — and more reporting requirements.
STR owners must issue 1099s for:
- Cleaners
- Co-hosts (unless paid through platforms issuing 1099-Ks)
- Maintenance workers
- Turnover coordinators
- Landscaping or snow removal services
- Guest support services
Because STR operations often involve platforms like Airbnb, some vendors may receive 1099-Ks instead.
For more clarity on 1099-K reporting rules, see: 1099-K Confusion Solved: How PayPal, Venmo & Stripe Affect Your 1099 Obligations
⭐ How You Pay Vendors Affects Whether You Must Issue a 1099
Landlords frequently miss this IRS rule.
You MUST issue a 1099-NEC when you pay via:
- Check
- ACH
- Zelle
- Wire transfer
- Cash
- Money order
- Venmo Personal
- PayPal Friends & Family
These methods are direct payments — not third-party settlement organization (TPSO) payments.
You DO NOT issue a 1099-NEC when you pay via:
- Credit cards (all brands)
- PayPal Goods & Services
- Venmo Business
- CashApp Business
- Stripe
- Square
- Etsy, Upwork, Shopify Payments
These are TPSO transactions processed under 1099-K rules, not 1099-NEC
Third-Party Settlement Organization (TPSO)
For deeper guidance, review:
- How to Pay Contractors Without Triggering 1099 Requirement (Legally)
- 1099-K Confusion Solved: How PayPal, Venmo & Stripe Affect Your 1099 Obligations
⭐ W-9 Collection: The Step Most Landlords Miss
Missing W-9s cause January chaos.
Landlords should:
- Collect a W-9 before paying any vendor
- Store W-9s for at least four years
- Request updated W-9s if vendor structure changes
If you didn’t get a W-9 in time, see: How to Handle a Missing W-9 From a Contractor — Even After You’ve Already Paid Them
⭐ Common Payment Flow Mistakes With Property Managers
If you pay a property management company, you may need to issue a 1099-MISC to them — unless they are taxed as a corporation.
You do not issue 1099s to the contractors they hire.
However, landlords should:
- Confirm who the payer was for each repair
- Understand whether a vendor was reimbursed
- Track direct payments separately
If a contractor refuses a W-9 or provides an invalid TIN, backup withholding rules may apply. Learn more here: Backup Withholding for Small Businesses: A Simple Guide to a Confusing IRS Requirement
Related Articles
- The Complete Landlords Tax Strategy Playbook (2025 Edition)
- Repairs vs. Improvements: How Landlords Can Maximize Deductions in 2025
- 1099 Filing Requirements Explained: What Every Small Business Owner Needs to Know
Do landlords really need to issue 1099s?
Yes. Rental property owners operate a trade or business and must follow standard 1099 rules.
Do I issue a 1099 to my property manager?
Yes — unless they are a corporation.
Do I issue a 1099 to the vendors hired by my property manager?
No. The property manager is the payer for those transactions.
Does paying by Zelle require a 1099?
Yes. Zelle is not a TPSO.
Do STR hosts follow different rules?
They must follow the same rules, but payment apps may issue 1099-Ks for some vendors.
Can paying by credit card eliminate my need to issue a 1099-NEC?
Yes — because merchant processors issue 1099-Ks for card transactions.
What if my contractor refuses to complete a W-9?
Backup withholding may be required until they comply.
Need Help?
If you’re unsure how to correctly issue 1099s for your rental properties — or want a streamlined system for collecting W-9s and tracking vendor payments — we’re here to help you stay organized and compliant.
Fortitude Tax & Accounting, located in Stansbury Park, Utah, just outside the Greater Salt Lake City area, specializes in proactive tax savings and accounting services tailored for therapists, real estate professionals, and small business owners. Led by Melissa Calwell, CPA, EA, with over 30 years of hands-on experience in both the private sector and public accounting, our firm offers comprehensive services including tax planning, tax preparation, bookkeeping, payroll, and tax strategies designed to maximize your savings. Choosing Fortitude Tax & Accounting means partnering with a firm committed to helping you achieve financial success through expert guidance and personalized service. Contact us today to learn how we can work together to optimize your financial future.
Fortitude Tax & Accounting has provided this article for informational purposes only and does not constitute legal, business, or tax advice. Each person should consult their own attorney, business advisor, or tax advisor with respect to matters referenced in this post and their personal situation.
