As I mentioned, the topic is debatable. Certainly it never would be wrong to issue a 1099-MISC. However, surgeon92, you began your original post with the words "investment condo." Right off the bat, that would appear to distinguish your activity as an 'investment' rather than as a 'business.'
Not meaning to be argumentative, I suggest that if a rental activity is conducted as a "business," then a Schedule C should be prepared and self-employment taxes paid. See what I mean about the ambiguous nature of the 1099-MISC form? My position is that "any business may be a for-profit activity" but "not every for-profit activity is a business." The IRS publications define a business as a for-profit activity, but they don't say that a for-profit activity is necessarily a business. Support that I offer is that a Schedule E reporting rental income and expenses for a rental "investment" may be filed in lieu of filing a Schedule C for a rental "business."
I am also concerned about the 'reverse implication' of issuing a 1099-MISC. If one issues a 1099-MISC to report payments to an entity such as a property manager, wouldn't the IRS therefore be expecting to see a Schedule C/C-EZ, including payment for self-employment taxes, filed for the 1099-MISC issuer's "business?"
Also note the following sentence from the IRS website at: <a rel="nofollow" target="_blank" href="
http://www.irs.gov/publications/p925/ar02.html">http://www.irs.gov/publications/p925/ar02.html</a>
"A trade or business activity does not include a rental activity or the rental of property that is incidental to an activity of holding the property for investment."
