Questions about being a property manager

[Kenneth LaVoie]

Good Morning

I am in the process of selling two of our buildings and the buyer is having us manage the buildings for him for a short time (1-2 years). It's a pain, but I'm almost there. I have some questions about the technicalities (how to setup fuel, insurance, taxes, etc.) but I don't see an actual Real Estate Mgmt section on the forum. If an admin sees this and wants to bump me to the right forum, please do, otherwise here are my questions. 

1. I've been advised by a local REM firm to have the owner pay fuel, insurance and taxes. Obviously we can't have insurance and taxes in our name anyway but fuel strikes me as something a REM firm would handle as a "day to day" -- any thoughts on that?

2. I've had a bear of a time getting fully clear on the whole "trust account" requirement (ie. having a separate trust account for owner's funds  that are outside the reach of my creditors) So here's what I plan to do: 

a.) Open a new LLC for the "mgmt. co"

b.) Open 2 checking accounts, one for the day to day of the mgmt. co and one called "trust account for xyz" for the operating income and expenses of the buildings we're managing. 

Does that sound like a pretty sound plan?

That all being said, if anyone has a management agreement I could peruse, I'd be eternally grateful. I do already  have one from a local that I've been "tweaking" but the more the merrier!

Thank you all. 

[Marcia Maynard]

Check to see what licensing is required in your jurisdiction for managing other people's property. In some states a real estate broker license is necessary or property management certification.

There have been a few discussions along these line in previous forum posts. Use the search box to find them. Here is one recent discussion you may find helpful.

https://www.biggerpockets.com/forums/52/topics/446...