For those of you who manage your personal rental with your LLC.....

[Brady Hanna]

How are you currently doing it?

My wife and I formed an LLC with the initial idea of buying rental properties through our LLC for the extra protection on top of umbrella insurance. After talking to bankers all over Kansas City, there aren't any banks in town that will give me favorable financing because it is a commercial loan. So I have decided to go back down the route of personally owning the property and am tossing around the idea of having my LLC "manage" the property like others have mentioned. The "Due on sale" clause just scares me a little too much to gamble on transferring my title to the LLC after I purchase the proper personally.

So others have mentioned having their LLC's collect the rent and essentially manage their properties. For those of you who are doing it, how exactly do you do it?

My only reasoning behind it is that I really like the professional feel of having tenants pay Midland Park Properties instead of Brady Hanna. Seems like a more legit operation. I know I will have to have a separate business bank account, but for those of you who have done it, do you accrue any additional taxes or anything like that? I imagine you would personally be paying yourself a management fee of say 8%, which the LLC would consider revenue, which would be taxed right? Or am I taking it too far?

Any advice would be appreciated!