Advice on assuming management of a relatives property

[Robert Lauren]

We are relatively new to real estate investing. We have been given an opportunity by a family member to basically take over the management of a single family rental and take any rental income generated from the property. They will still own the property until they pass (to avoid capital gains) but does anyone have any advice on how best should we best structure this situation legally and administratively?

[Steve K.]

I would seek legal counsel on this. Most states require a license to manage property that you don't own, and some have exceptions for if you are a salaried employee, an on-site manager, a part-owner, or managing on behalf of a parent or child. Lately STR co-hosts have been exploiting a loophole by offering limited services like scheduling cleaners, handling complaints etc. while explicitly avoiding any leasing, marketing, or money transactions/ activities which would require a license. Perhaps you could have your relative simply add you to the title, or give you an option to buy to satisfy the ownership interest requirement, or put the property in a trust and make you the trustee, or assign you power of attorney allowing you to act on their behalf? Finding a good local lawyer to help you figure out the best way to go about it is the way to go here, IMO.