Investment/Rental Vacation Property Ohio Law Regarding Property Management

 

As more folks consider buying and then offering their vacation home for short term rentals, in order to help defray finance and operating costs, there are a few significant items to keep in mind.  Some might also consider branching out a bit and managing others rental properties as business begins to look better and brighter.

 

While there are various things to consider in each case, two are of primary importance.  The first is to simply consult with your CPA or other qualified financial advisor to review the full ramifications when tax time comes.  The amount of days you use and rent a vacation home has significant impact on what you can and cant do when it comes to deductions and depreciation.  Find more information at http://www.irs.gov/publications/p527/index.html.

 

The next questions cover Ohio Real Estate Law.  If you're going to talk to prospective property managers who might in any way be hired to handle funds related to renting or leasing property, you should first ask them with which Ohio licensed real estate brokerage they're affiliated.  That information should be fully disclosed and prominently displayed, by the way, also according to Ohio law.  Managing the rentals of properties that one does not own requires an Ohio real estate license; Ohio real estate agents must also be affiliated with a real estate broker (or qualify to create their own brokerage).  Brokerages are also subject to specific rules and regulations regarding property management.  A white paper covering Property Management law in Ohio can be found at http://tinyurl.com/OHpropertymanagement.
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3/5/10: Here's an update on property management issues in Ohio taken directly from the Division of Real Estate's newsletter for Winter 2010 (courtesy Ohio Division of Real Estate & Professional Licensing):

"The Ohio Division of Real Estate and Professional Licensing has seen an increase in the number of complaints related to unlicensed property management activity throughout the past several months. In response, the Division created an informational pamphlet to educate individuals in the industry about property management and the legal requirements needed to conduct property management activities.

The Ohio Real Estate Commission may assess a civil penalty of up to $1,000 per day per violation for unlicensed property management activity; therefore, it is very important that professionals within this field understand the legal requirements needed to conduct property management activities.

To obtain a copy of the Divisions property management pamphlet, please visit our website at http://www.com.ohio.gov/real/docs/real_PropertyManagement.pdf . The Division encourages you to share this important pamphlet with other professionals in the field."