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Last Updated: 9/3/2015

Real Estate Agencies and Property Management Services

Real estate agencies use real estate agents to help clients sell or rent buildings and land. Agents receive a commission for their services. Their commission fees are not taxable.

Property management

Property management is the operation, control, and oversight of real estate. Fees charged for property management services are not taxable. Examples include:

  • Showing properties to possible renters
  • Collecting monthly fees from tenants
  • Maintaining rental records
  • Paying bills for property expense
  • Handling tenant complaints and violations

Taxable sales

Charges for short-term or overnight lodging in an apartment complex or other residential rental property is taxable. For more information, see Fact Sheet 141, Hotels and Lodging Facilities.

Certain services are taxable when they are billed separately from other real estate or property management services. Examples include:

  • Building cleaning and maintenance
  • Lawn and garden care
  • Pest control
  • Other taxable services
 
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