Property Management
Instead of having a bank account (checking) for each one of my LLC’s, I like to have Management Company so that all checks are made payable to my ex. ABC Management Company, Inc. It would be a lot easier to setup a checking account and have direct deposit for any of my properties (subject to, lease option, land contract etc.)
Can you have your own management company and manage it? Would you have to have licenses or pay fees in your county or state to do this?
Thanks.
Yes, you can have your own management company "manage" your LLC property. It is a great strategy! I set up a management corporation and it has had several benefits. Just sign a Management Agreement between the property (however title is held) and the management company (i.e. yourself). Have the property pay the mgt co the 10% or whatever management fee (I pay mine quarterly to the mgt co) and make the money legitimately disappear within the corporation. Tax write-offs are more abundant with your management corporation. Mine is in my home, so I can pay partial utilities, rent/mortgage, insurance,etc. You can buy a vehicle, computer, paper, stamps, set-up insurance policies for yourself, establish a pension plan for yourself, etc if you have taxable money at the end of the year. I would suggest establishing a corporation, then electing to have "S-corp" status, or closely held, to make tax reporting and other things easier. It's great for depositing checks in one place if you can keep track of what came from where, and being able to pay for management services while "keeping" the money is huge. Good luck!
datalynx2,
When I set up my S-Corp with the secretary state of Ohio, like I have setup my LLC and then open up a bank account, do I have to be LICENSED or PAY A FEE with my state or county….did you have to do that?
Where can I find a management agreement form? Also, will I have to have the buyer sign their signature and give them a copy, too?
Are you using a management service or are you doing this on your own. I was thinking do this myself without a management services because that would be expensive.
I appreciate you getting back to me.
Thank you.
[ Edited by CarolG on Date 08/18/2004 ][ Edited by CarolG on Date 08/18/2004 ]
Carol,
No local fees need to be paid as far as I know. Small state license corporate remewal fee every year, but I can't speak for OH. In general terms, you should not have to be licensed to manage your own properties, but I think a lot of states require a realtor's license to manage property for other people. I have a simple management agreement I could e-mail you. If you are going to sell a property and want to stay on as manager, you can record it in the county records if you notarize it. Did you ask about that? I can't see your latest post anymore while writing this.
datalynx2,
That is very kind of you to help me out. Please send me that form.
Thank again.
I greatly appreciate it.
**Please See My Profile**
Carol,
I think you need to change your profile to allow others to send you a message. I couldn't get in. And yes, I manage my properties myself (barely!).
Steve
datalynx2,
i went into my profile and checked the box to recieve email..sorry i did not know. Please send the property form.
Thanks for all your help again.