Create a Property Management LLC?

[Dave Holman]

I co-own and manage two single family homes in Maine and am buying a multi-unit in 2017 and more down the line. All are in separate LLCs with different investor equity compositions. Should I start a separate property management LLC that buys everything, pays all expenses, contractors etc. and then bills the LLCs OR should I just keep track of each property's expenses? Pros, cons?

[James Triano]

@Dave Holman

I would actually think this would just make things more complex for you to track everything by project and then bill your other LLCs.  There's really no harm in doing so.  

The only reason I would suggest doing it is if you were planning on doing Property Management for other customers other than just your own businesses. If that's the case it would make sense just to separate it all now. Otherwise, I'd just keep it simple and do everything within the LLC's you already have.