Long distance rent collection

[Mike Webber]

Hey guys, I just closed on a long distance rental and have a PM in place. Right now the plan is for them to collect the rent and deal with the any expenses. They will then send me the breakdown along with the cashflow/owner payout. The property is in my name, not an LLC. Is this the best way to handle it? My concern is that come tax time it might not be as obvious or easy to sort out as it would be if all the rent went to me and I paid them their fee, and wrote checks separately for any expenses. Thanks for any feedback 😁

[Tracy Streich]

@Mike Webber They way it is set up is correct. Your have a PM let them handle it. They should send you the NET every month. They collect, take out the PM fee, pay approved expenses and send you the rest. LLC vs personal is another long discussion and you can read on these forums for 3 days straight on what people think of that. As a PM I would not send the money to the owner and then wait for them to pay me. They should give you a monthly statement and year end summary with all expenses paid that will work for your accounting and taxes