1099 from property manager question

[Paige Rob]

Of the several property mangers I have there are 2 that do 1099's differently.

One manages 2 properties and does not issue a 1099. Annually I ask and annually they tell me that their owners just use the income from the end of the year statement. I do but this seems odd.

The other will only report on the 1099 the income disbursed to me (my owner draws) and does not include the rental income they collected that is sitting in my account that has not been disbursed. Why is some money not disbursed? I'm letting money accumulate there to do big updates on one of the units (ac, flooring). So, for example, 12k was collected but only 6k was officially mailed to me leaving 6k of my money with the PM for expenses when realized. This would be the 3rd year in a row where my 1099 does not match the actual income they received on my behalf from my tenants. What should the 1099 reflect?

[Nathan Gesner]

I agree with the others.

PM #1 is an amateur and doesn't understand the basics of running their business. You should fire them before something serious goes wrong.

The second PM is at least trying (I think), but they are doing it wrong. They should report ALL income and expenses, even if they retain a portion of that income as a reserve for future expenses.

Personally, I would not let the PM hold you money long-term. You should hold it and disburse it to the PM when it's time to spend it.