Having a property management company with rental RE

[Kia Afshar]

I have noticed that a significant number of people into rental real estate also one their own property management companies. My wife and I have a few properties that we currently manage. Is there an advantage to making our small management scenario a separate company? It seems that the overlap of people who invest in real estate and also have a property management company is high to just be coincidental. Curious if there is something that I am missing as far as the advantage of this. Thanks. 

[Filipe Pereira]

There may be some tax advantages @Kia Afshar, but not anymore so than if you already take the typical deductions that come with owning real estate (home office deduction as an example). There may also be some benefit to creating a s-corp LLC structure in which you can expense to the LLC a PM Fee from your property, in order to save some on "self employment taxes", but that sounds really complicated and more fit to ask a CPA about - which I am not, just to be clear.

Generally, I find the people that start a property management company are the ones that can't find one that they like enough to hire them, or because they figured "ehh, I'm already doing it for myself, I might as well do it for others" (I fall in that camp).

Just make sure you get the proper licenses for your state / province.