It depends, you can use home office for managing your rentals if you are not a business for self employment purposes. Here are some tips for you to review that may help your decision.
- Schedule C - If you provide services, like a hotel or B&B would (cooking, cleaning services, maid service etc).
- The term property manager also leads to a self employment activity which could depend on the number of properties and time you spend manage them.
- Schedule E - If you are just renting out a space and you do not offer any additional services.
It's possible the IRS could consider your rentals as investment property for the purpose of the home office expense. Unlike self employment, you would use a worksheet and not Form 8829 (exclusively for Schedule C). You could prepare this form by hand as a worksheet and use it to calculate your deduction.
The IRS is quite clear on regular and exclusive use of the area. No personal business in the rental management office or on the computer in the office, no personal space used in the office for personal expenses, etc.
If you decide you are using space that is strictly used for managing the properties the expense would be listed under Miscellaneous expense on Schedule E
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