How to prove that an activity performed was "material participation" in real estate

[Marc Shin]

Hello. I'm going to keep track of my real estate activities in management of an STR, and will track the activities using an activity log. My question is - how do I prove in the time log that I performed a particular activity? For example, if I had a 1 hour conversation with a GC regarding the renovations of the property to get it ready for STR, how do I prove that I performed that 1 hour conversation in the log? Do i take a snapshot photo of my outgoing phone call to the GC or can I simply summarize in the log that I had the 1 hour conversation with the GC and summarize the details of the conversation?

Also, if the contractor is performing the work or the repairs on the property, can I count that time the GC spent as my own time in the activity log since he was doing the work on my behalf?   Or can i only log the hours that I spent in communicating with the GC regarding the work?   TIA

[Account Closed]

Hey Marc, 
When tracking your real estate activities for STR management, particularly to prove material participation, it's important to clearly document each task you perform. For example, if you had a 1-hour conversation with a general contractor (GC) about renovations, you can simply summarize this in your activity log. Include the date, duration, and a brief summary of what was discussed (e.g., "Discussed renovation plans with GC for STR property"). While it's not required to take a snapshot of the phone call, you can keep call logs or email exchanges as backup for extra support if needed. The key is to be detailed and consistent in your logging.

For our clients, we provide a custom spreadsheet to help track activities more effectively. It’s designed to capture all relevant details, including hours worked, descriptions of tasks, and the specific nature of the involvement. However, only the time you personally spend on managing or coordinating the property counts. If the GC is performing work on the property, you can only log the time spent communicating with the GC or overseeing the project—not the hours they work independently on your behalf. This ensures you accurately reflect your active involvement in managing the STR.