Can the PM also be our tenant?

[Rob Horon]

Curious what people think about renting one of your properties to your PM.  Is this okay, allowed, or does it set you up for conflicts of interest down the road?  Does anyone have any experience / stories with such a situation before?

[Anna Sagatelova]

The questions to ask include: Who will you turn to if your PM doesn't abide by the lease? What if they don't pay their rent? Will you personally handle the eviction? Are you paying them for the management of that home/discounting the rent in any way?

The closest thing to this that I know works is providing one apartment unit as partial compensation to an on-site leasing/maintenance manager of said apartment complex, and correspondingly reducing their salary. But that is not a PM/client relationship, it is employer-employee.

At the end of the day, what is motivating you to consider this? Is it just that your PM asked? I would certainly have a red flag go off.