[quote=spdrun]Since the seller is moving out of state, he’ll be a non-resident.

And correct me if I’m wrong, but the property manager’s distribution is the gross rent minus their fee. Owner still pays taxes, common charges, and mortgage directly, no? So the withholding would be closer to a percentage of the gross rent than that of the the net income. And unless an exception is granted, Jerry’s Pigs will owe the owner at year’s end, rather than vice-versa.

Personally, if either of my offers in CA go through, I have no intention of using a management crook.[/quote]

If you’re going to pay a management company, let them manage. Including paying the mortgage and property taxes, insurance and all other expenses. That’s what they’re getting paid for. Most people who use management companies for real estate do that. I never understood people who pay significant fees and then do the work themselves. They don’t get their money’s worth. Waivers from withholding are invariably granted except for failure to file CA returns when required.