NARPM^® Urges Treasury to Clarify Treatment of Property Management Agreements

NARPM^® has sent a letter to the U.S. Department of the Treasury requesting clear guidance as the agency implements the 21st Century ROAD to Housing Act (H.R. 6644).

In the letter, NARPM asks Treasury to confirm that entering into or operating under a standard property management agreement does not give a third-party property manager direct or indirect control of a single-family property for purposes of determining whether an entity is an institutional investor.

Professional property managers provide services on behalf of property owners, including maintenance coordination, resident communications and rent collection. They do not own the property, hold equity in it or make the owner’s final investment and sale decisions. Without clear guidance, properties owned by separate small housing providers could be incorrectly grouped together simply because the owners use the same professional management company.

NARPM is urging Treasury to address this issue promptly to help prevent market disruption, protect small property management businesses and preserve access to professional management services for housing providers.

Read NARPM’s letter to the U.S. Department of the Treasury

NARPM will continue to represent the interests of residential property management professionals and serve as a resource to federal policymakers as regulations are developed.