Owner must be hands off on entity?

[Debbie]

I keep coming across resources that in order for an entity to be more effective, owner should be hands off on management on any rental properties. Is this accurate?

I thought that the owner can be a "trustee" of multi managed LLC (for example), meaning that the owner can still do landlording jobs as well as manage rental properties. But, apparently that owner doing so will make the entity less effective.....

Is this true? Does owner be better off hiring PM or sub contract out?

[Aldo]

It's not only accurate, it's essential. IMHO, it's over-kill; but, if you feel the need to be totally anonymous, you don't want personally identifying info to appear anywhere on this side of Jupiter.

Howard might be your best resource for advice on how to be paranoid. Sorry, I meant ......... well, paranoid. Greed-mongers have little interest in small businesses because big businesses have deeper pockets. Yes, there are exceptions to the rule, but those exceptions are not worth considering for owners who diligently manage and maintain their properties.

[SPIVALAW]

You can have one of your entities be the manager and you tell people you are just an employee of the Entity that is owned by the investors.

no one knows you are all of them.

[Aldo]

In keeping with Howard's reply, I use two kinds of business cards. For business purposes I have cards identifying me as the president of my company. For tenants, applicants and some vendors I have cards identifying me as the property manager for the company that owns the property (mine, of course). If you choose to do this, be sure to identify yourself accordingly in all communications. A huge street-level advantage to this is that, as the property manager, you have to 'talk to the boss' when a tenant makes an unreasonable request, for example.

[SPIVALAW]

Better yet be the handy man/girl with no decision making powers.

The manager (use a great grand mothers maiden name) she only responds in writting and to written request. No office to visit and no phone calls.

When they dont pay rent and they get served you get mad and say:

"that mean manager and those cold hearted investors, I told them to give you more time, I told them you will pay them, you will pay right? Even though I need this job, I am going to quit because they are so mean to you Mr Tenant!"

They will beg you not to quit, it isnt your fault...

good guy / bad guy always works...