Property ManagementIntermediateAlabama Exam

An Alabama property manager who receives a commission for referring a tenant to a specific moving company must:

ADisclose the referral fee to the tenantCorrect

BReport the income to AREC

CRefuse such referral fees to avoid a conflict of interest

DObtain written consent from AREC before accepting any referral fees

Why Disclose the referral fee to the tenant Is Correct

Answer A: Disclose the referral fee to the tenant

A property manager who receives compensation for referrals (such as referring tenants to specific vendors or services) must disclose this to the parties involved to avoid undisclosed conflicts of interest. Undisclosed referral fees may violate fiduciary duties and licensing law.

Exam Tip: Property Management

Property management questions cover landlord-tenant law, security deposits, and maintenance responsibilities. Know the differences between gross, net, and percentage leases.