What does making a secret profit violate in property management?

Making a secret profit in property management directly violates the fiduciary duties imposed by agency law. In property management, the relationship between the property manager and the property owner is typically fiduciary, which means that the manager has a legal and ethical obligation to act in the best interests of the owner. This includes full disclosure of any financial transactions and avoiding conflicts of interest.

When a property manager secretly profits from transactions or arrangements that are not disclosed to the property owner, it breaches this fiduciary duty because it undermines trust and transparency. The property manager is expected to place the owner's interests above their own and to provide accurate and honest accounting of all transactions related to the property. Failing to do so can result in legal repercussions and damage to the professional relationship.

While local tenant laws, rental agreements, and fair housing regulations are also essential components of property management, they do not specifically address the issue of secret profits in the context of the fiduciary relationship between the property manager and the property owner. Thus, the violation of these agency law fiduciary duties is the most pertinent concern when discussing secret profits in property management.