Withholding credit required by state for non-resident property owners

March 26, 2010

As of January 1, 2010, California law now requires anyone living outside of California and owning rental property in California to pay quarterly withholding credit on rents collected.

Further, property management companies are required to withhold 7 percent of all payments associated with rents paid to non-resident owners when the amount of the rents are greater than $1500 per calendar year. Management companies must forward the appropriate amount withheld on behalf of the non-resident property owner to the California Franchise Tax Board along with necessary Franchise Tax Board forms. This is to be performed quarterly.

There are some exemptions to this law. For more information, download the FTB article Withholding on Nonresidents With California Source Income, consult your tax professional or contact TenantFinders by phone 925.284.7200 by email at propinfo@tenantfinders.com or www.tenantfinders.com.

  • Contact Us

    Contact us by Email

    * indicates required field

  • "My family has been working with TenantFinders for 15 plus years and our experience has been first rate. Their personal attention is unprecedented. Our parents (the property owners) are elderly and TenantFinders is always kind, patient and happy to answer their questions. They are extremely competent and detail oriented as well – all of which is comforting relief for their adult children!"

    Cathy Simpson,
    Property Owner

Contact Us Today

Click here for insider secrets for maximizing property income

"As an out of state property owner it is essential to have a property management company who is reliable, trustworthy and will look after my property as if it was their own. I can honestly say that TenantFinders is such a company."

Robert Forsman, Property Owner