September 2026
If you manage rental property that you own, you may assume Oregon’s property management and clients’ trust account requirements do not apply. Depending on how the property is titled, that may not be the case.
We see properties titled in a variety of ways. From individual ownership to LLCs, corporations, and partnerships. How the property is titled matters because it determines whether you are managing your own property or conducting professional real estate activity on behalf of another.
Property Titled in Your Name
If a property is titled solely in your name, or jointly with one or more individuals and the ownership interest is by survivorship, tenancy by the entirety, or an irrevocable marital trust, you are not held to the property management requirements described in Oregon Revised Statutes (ORS) 696 and Oregon Administrative Rule (OAR) Chapter 863.
In this situation, rent and other funds associated with the property should not be deposited into the clients’ trust account(s) you use for professional real estate activities. Doing so may constitute commingling under ORS 696.241(5).
Property Titled as a Separate Entity
The requirements are different when the property is titled in the name of a corporation, LLC, partnership, limited liability partnership, or another ownership structure that creates a separate legal entity.
Let’s use an LLC as an example. You may own the LLC, or even be its only member, but the LLC is still a separate legal entity. If the property is titled in the LLC’s name, the LLC owns the property. The Agency considers managing property owned by a separate legal entity to be professional real estate activity conducted on behalf of another as described in ORS 696.010(18).
If you own an LLC and a rental property is titled in the LLC’s name, your ownership of the LLC does not make the rental property individually owned by you. When managing that property, you must follow the applicable property management requirements under ORS 696 and OAR 863. These requirements include:
- Maintaining a written property management agreement.
- Properly establishing and maintaining the required clients’ trust account(s).
- Maintaining complete trust account records.
- Completing monthly reconciliations.
- Properly accounting for owner and tenant funds.
- Maintaining complete records meeting Agency requirements.
The same applies whenever property is titled in a manner that creates a separate legal entity.
Funds associated with these properties may be held in the clients’ trust account(s) you have already established for your professional real estate activity, or you may choose to maintain a separate clients’ trust account for these funds. Either option is acceptable, provided the applicable clients’ trust account, accounting, and recordkeeping requirements are met.
Review How Your Properties are Titled
If you are managing property titled in the name of a separate legal entity and you are not currently following the applicable property management and accounting requirements, now is the time to make the changes needed to come into compliance. Depending on your circumstances, this may include putting a written property management agreement in place, properly handling funds through client trust accounts, and establishing the required accounting, record keeping and monthly reconciliation procedures.
Taking these steps will help ensure your property management activity complies with ORS 696 and OAR 863.