Best way to take over 54+ units from my father who is retirement age?

[Philip M.]

Hi All,

First off, thanks to anyone who has any type of insight here, it is greatly appreciated!  I am 36, own a very successful Air BNB at a local ski hill, and am in the process of looking into the best way to get involved in my father's 54 unit rental property business.  He just turned 68 and is ready to be done in an active role as a self-managed landlord for all of his properties.  I have a sister, 34, who also is very interested in getting involved with the business as well.  Some of the properties could be better off in both exterior condition, as well as units rented (which is currently probably at around 50% or less).  Part of the reason for this is that this past year was a tough year for my Dad, as he lost his father, and there was an unfortunate legal battle (which has since calmed down), with an unfortunately uncommunicative sibling in charge of the estate.  It took up most of his time and energy.  My father has also just generally gotten worn out, I believe, from being a self managed landlord and one man maintenance show for all of those units for the past 30+ years.  My sister and I are looking to bring a renewed energy, and urgency to maximize income to the business.  We also see the long term potential of rental properties and what they could mean for both of our growing families.

That said, I am doing a lot of research right now into the best ways to structure the legal entities so as to get us involved and for tax efficiency purposes.  When it comes to management, I would be taking on a more active role in day-to-day maintenance, tenant acquisition, renovations, etc.  However, the goal would be to increase the amount of units rented to close to 100%, maximizing income, then potentially outsource management duties - either by hiring a capable manager/maintenance person, or by getting a property management company involved.  My sister and I are not opposed to some sort of buy in as well, as it would likely help my father clear up some debts, and would just be nice to help him realize some sort of lump sum gain, in addition to what would likely be a share of monthly rental income.

We are looking at setting up a trust to accomplish all of this, but are just at the beginning of this journey.  If there is anyone out there who has advice or experience who could weigh in, it would be greatly appreciated.  Thank you very much!

- Phil