Comingling Funds of Managed Property
I have some rentals of my own and each is in an LLC with its own bank account. I'm about to begin being prop mgmt of a SFH for an investor with a separate company I have established.
How do people handle funds? Do I pay the mortgage for the property owner? How about setting funds aside for vacancy, maintenance and capital expenditures? Do I hold those monies?
Is the lease between my mgmt company and the tenant? Property owner is going to put the property into an LLC but has not yet done so.
Most Popular Reply
- Real Estate Broker
- Cody, WY
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You cannot comingle any of your funds with the funds of those you manage for, even if your funds are held under an LLC. I have 33 units and manage 350 for others. Even though my rentals are held in an LLC and I have property management agreements between my PM company and the LLC, I still have to keep the LLC funds separate from all the other owners.
- Nathan Gesner
