Property Management

In Texas, a property manager who self-contracts repair work for a managed property is:

AEncouraged as it saves the owner money
BRequired to disclose any financial interest in the contractor and obtain owner approval to avoid a conflict of interest✓ Correct
CPermitted without disclosure since property management includes oversight of repairs
DProhibited under any circumstances

Explanation

If a property manager has a financial interest in a contractor (ownership, family relationship, referral fee), they must disclose this to the property owner and obtain approval before directing business to that contractor. This prevents undisclosed conflicts of interest.

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