Good or bad idea? Property management firm for my own properties.

[Paul Teske]

Hey BP,

I'm considering starting a property management firm that will only deal with my own rental units. This company will not own the rentals, because I do not want to trigger the Payment Due on Sale clause in the mortgage; the properties will remain legally in my name for now. The primary goals are to keep the properties' books separate from my personal finances while also projecting a professional image that wouldn't be accomplished had everything been in my name. Other legal protections afforded by the LLC are a bonus, but I fully realize that I can be sued as long as the property is in my name. I wanted to ask anyone else who has done this how it worked out. Any pointers would be appreciated; I can't find much info about this.

This is in Florida. I will be drawing a salary (not commission), and will not manage properties that I do not own - therefore no need for a broker's license. I am fully aware of the extra paperwork and costs that come with LLC ownership. Forming the LLC is part of my long-term business strategy. Eventually, the LLC will also own the properties, but that's not an option at this moment.