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|The laws of some states require a resident manager for residential
buildings or complexes of more than a certain number of units. When
there is no such law or when the number of units is fewer than
specified in a law, there are other reasons why a resident manager is
sometimes of benefit to an owner.
Most states allow the use of a tenant living in a property to act as an on-site manager of that particular property without having the license otherwise required for property management, although the tenant is prohibited from managing another property that is at a different location even though the other property is owned by the same landlord or managed by the same property management company.
The hiring of a resident manager requires both finding candidates and selecting one who is adequately qualified. IRS rules require that the manager be treated as an employee rather than as an independent contractor. All hiring and employment laws must be followed in the same manner as would be required for other employees, with a few variations because the employee is also a resident.
The landlord is potentially liable for violation of landlord-tenant and fair housing laws, even though the laws were violated by the resident manager, and for any injury or damages that the resident manager causes.
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