Do landlords issue 1099-NECs to vendors?

Yes if the landlord is engaged in a trade or business and pays $600+ to an unincorporated service vendor (handyman, plumber, gardener) in a calendar year. Pure passive landlords debating trade-or-business status should consult a tax preparer — the answer affects 1099 obligation and §199A QBI eligibility.

What about payments to property managers?

PM fees paid to a DRE broker for management services are reportable on 1099-NEC if the PM is unincorporated or in some structures. Most PM firms are incorporated and exempt. Confirm via W-9 collected at engagement.

What's the W-9 collection process?

Collect a W-9 from every vendor before issuing payment. The W-9 captures TIN, name, and entity classification — used to determine 1099 obligation and to populate the 1099 if required. No W-9, no payment is the common protocol.

What's California 592 / 593?

FTB Form 592 governs withholding on payments to nonresident vendors. Form 593 governs real-estate transactions. If a PM or landlord pays nonresident vendors $1,500+ in a year, 7% withholding may apply unless the vendor provides a waiver or exemption certificate. State overlay on top of federal 1099.

What about issuing 1099s to your own landlord?

Commercial tenants paying rent to a landlord on a trade-or-business basis may need to issue 1099-MISC for rent payments above the threshold. Residential tenants don't. The 1099-MISC rent box is distinct from 1099-NEC for services.

1099-NEC · W-9 · FTB 592/593

1099 requirements. Vendors get NEC. Trade-or-business test applies.

Trade-or-business landlords issue 1099-NEC to unincorporated vendors paid $600+. Collect W-9 first. California adds 7% nonresident withholding on Form 592. Property managers usually issue these on the owner's behalf.

TL;DR

Trade-or-business test → 1099-NEC to unincorporated vendors paid $600+. W-9 at vendor onboarding. CA Form 592 nonresident withholding 7% over $1,500. 1099-MISC for rent (commercial tenant pays landlord). PM usually handles for owners.

PM Fees Typical
LLC vs Personal

Common questions — 1099 requirements

1099-NEC to vendors?

Yes if trade-or-business + $600+ + unincorporated.

PM payments?

Confirm via W-9; most PMs incorporated and exempt.

W-9 process?

Collect before paying.

CA 592/593?

7% nonresident withholding over $1,500.

1099 to own landlord?

Commercial tenants only.