If you own rental property or manage properties for others, you might be wondering if you need to issue 1099 forms for the people or companies you pay. The answer depends on who you pay, what you pay them for, and how your business is structured. Many landlords overlook this step, but issuing the right 1099 forms helps you stay compliant with IRS rules and maintain clear, organized records for tax season.
Key takeaway:
Most landlords and property managers must file 1099-NEC forms when they pay $600 or more to independent contractors or service providers for work related to their rental business. These forms report payments for services such as repairs, cleaning, landscaping, or maintenance. If you manage properties as a business, filing online through WageFiling is the fastest and most secure way to stay compliant.
Who Needs to File a 1099?
The IRS requires businesses to issue Form 1099-NEC to any person or unincorporated business they pay $600 or more during the year for services. This rule applies to landlords and property management companies when they operate as a trade or business.
Here are some examples of people and companies that might receive a 1099 from a landlord or property manager:
- Plumbers, electricians, or handymen performing maintenance or repairs
- Cleaning services or janitorial contractors
- Landscapers, pool maintenance crews, or pest control services
- Bookkeepers, leasing agents, or marketing consultants
If you hired an independent contractor or small business that is not a corporation and paid them $600 or more, you are generally required to issue a 1099-NEC.
However, you do not need to issue a 1099 if:
- The vendor is a corporation (C-corp or S-corp), except for certain legal or medical services
- You paid through a credit card or payment app (those are reported on Form 1099-K by the processor)
- The total paid was under $600 for the year
What’s Changing for 2026?
The IRS recently announced that beginning with tax year 2026, the reporting threshold for Forms 1099-NEC and 1099-MISC will increase from $600 to $2,000. This means many small landlords and business owners who make smaller annual payments may no longer need to file 1099s.
Until that change takes effect, the current $600 rule still applies for all 2025 filings due in January 2026. Staying aware of these updates ensures you remain compliant and avoid penalties when thresholds shift.
Does the Rule Apply to All Landlords?
Whether you must file 1099 forms depends on how you manage your rental property. The IRS distinguishes between individual landlords and business entities that operate property management services.
- Individual landlords: If you own one or two properties as an individual and manage them personally, you may not be considered “in the trade or business” of property management. In this case, issuing 1099s is not typically required, though it is still considered good practice.
- Property management businesses or LLCs: If you manage properties for clients or own multiple rental units under a business entity, the IRS views this as a business activity. You are required to issue 1099 forms to all qualifying vendors and contractors.
When in doubt, it’s safest to file the form. Providing accurate 1099s shows that you are maintaining proper business records and can prevent future questions from the IRS.
What Type of 1099 Form Applies to Landlords?
There are two types of 1099 forms most relevant to rental property owners:
- Form 1099-NEC: Used to report payments made to contractors or service providers for work performed.
- Form 1099-MISC: Used to report rent payments made by property management companies to property owners, or other miscellaneous income such as prizes or royalties.
For most landlords and property managers, the 1099-NEC is the primary form you’ll use. It’s required for anyone who performed a service such as maintenance, cleaning, or marketing and received more than $600 during the year.
If you are a property management company that collects rent on behalf of property owners, you may also need to issue Form 1099-MISC to report the rent paid to each property owner.
You can review official examples and IRS instructions on the IRS Information Return Reporting Requirements page or see the latest Instructions for Forms 1099-MISC and 1099-NEC for full filing guidance.
How to File a 1099 as a Landlord or Property Manager
Filing 1099 forms is quick and straightforward when you use an online filing platform like WageFiling. Here’s how to do it:
1. Collect W-9 Forms
Before paying anyone, request a W-9 form from every contractor or service provider you work with. This form gives you their business name, address, and Taxpayer Identification Number (TIN). Store these securely for reference at the end of the year.
2. Track Payments During the Year
Keep a running total of all payments made to each vendor. Include checks, ACH transfers, or cash payments, but exclude credit card or PayPal payments since those are reported separately by the processor.
3. Prepare and File Online
By the end of January, log in to WageFiling and enter each contractor’s details into the online form. WageFiling automatically files your 1099-NEC or 1099-MISC with the IRS and the Social Security Administration. You can then print and mail the recipient copies yourself.
4. Meet the Deadlines
- January 31: File Forms 1099-NEC and send recipient copies
- February 28 (paper) or March 31 (electronic): File 1099-MISC with the IRS if applicable
IRS Now Requires E-Filing for 10 or More Forms
Starting with 2024 filings, the IRS requires businesses that file 10 or more information returns—including Forms 1099-NEC, 1099-MISC, and W-2—to file electronically. This total is combined across all types of information returns, not per form type.
For example, if you file five W-2s and five 1099s, you’ve met the 10-form threshold and must e-file. Using an IRS-authorized provider like WageFiling ensures your forms are transmitted securely and accepted quickly, without the need for paper filing.
Filing early avoids penalties and ensures your contractors and property owners receive accurate forms on time.
Why Landlords Should File 1099s Even If Not Required
Even if you’re not technically required to issue 1099 forms, it’s still a smart practice for landlords. Here’s why:
- It helps you keep accurate records of property-related expenses.
- It provides transparency if your tax return is ever reviewed.
- It builds trust with contractors by documenting payments.
- It keeps you ahead of possible IRS rule changes.
Voluntary compliance now can save you from unnecessary headaches later.
Common Mistakes to Avoid
- Forgetting to collect W-9s: Without a W-9, you won’t have the correct information for your 1099.
- Using the wrong form: Use 1099-NEC for service payments, not 1099-MISC.
- Missing the deadline: Penalties can range from $60 to $310 per form depending on how late you file.
- Not keeping copies: Always store your forms, W-9s, and payment records for at least four years.
Following these simple habits can keep your rental business running smoothly.
Frequently Asked Questions
Do landlords need to issue a 1099 to a cleaning or repair company?
Yes. If you paid $600 or more to a cleaning service, handyman, or repair company that is not incorporated, you must issue a 1099-NEC for those payments.
Do property management companies need to send 1099s to property owners?
Yes. If you collect rent and pay property owners, you should issue a 1099-MISC to report those rent payments.
Can I file 1099s for my rental business without accounting software?
Yes. With WageFiling, you can create, e-file, and print your 1099 forms directly from your browser without downloading or installing software.
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WageFiling’s team is happy to help with e-filing, bulk TIN checking, or general filing questions. You can reach the support team at support@wagefiling.com or use the live chatbot on wagefiling.com for quick answers.
