LLC Question - Separate LLC for Managing and Owning?

[Aaron K.]

I'm closing on my first property soon. It's a property I've been renting for my business for a few years, and there are three other rental units on the property in addition to mine.

Here is my LLC plan:

One property ownership LLC. This LLC will own the property, and I will be the president. Rent will be paid to this LLC, and bills for this property will be paid by this LLC.

One property management LLC. This LLC will be hired by the first LLC to manage the property (day-to-day activities on the property) and I will be the president. A monthly management fee will be paid to this LLC by the first LLC.

My reasoning for two LLC's is this - as I acquire additional properties, each property will be under it's own LLC. They will all hire the same management company to manage the operations. This creates another layer of liability protection, and also further separates tenants from the property owner, because they're dealing directly with a management company. Yes, I'm the president of both companies, and I'm also dealing with tenants, but they don't need to know I'm also the owner.

Does this make sense, or am I crazy?