Here's a scenario that could apply here, which would not only be problematic, but could have the potential to flag and audit.
AirB&B collects the income. From that gross income AirB&B takes their cut and sends the rest to the property manager.
Then the property manager takes their cut and sends the rest to the property owner.
If AirB&B sends a 1099 to the property owner for the amount they paid to the property manager, it's possible that the property manager will also send a 1099 to the property owner for the amount they paid to the property owner. This means that the 1099 from the manager will include the income already reported on the 1099 from AirB&B. So the property owner is reporting a little more than double the income they actually received. While this can be "dealt with" by the property owner on their own tax return, I would fully expect it to create a much greater audit risk with the IRS. While such an audit would probably work out fine, it can (and most likely would) be a hassle for the property owner to deal with to final resolution.
