Help! I own an investment property with my family and we disagree

[Geoff Pettis]

As a property manager I have customers who own investment properties with family members but they don't see eye to eye with that family member when it comes to the investment property.  I'm sure we have all heard stories and have personal experiences of owning businesses and investment properties with family members, I know I've learned my lessons.  I would like to give my customers some ideas and direction on where to start and some options they may have with how to address this situation and eventually solve it without causing too much family strife.

Thoughts?

[Patricia Steiner]

Above all else, it's a business.  Either there is a general manager/partner who calls the shots - and is also held accountable for those decisions - or each member takes on a specialty area to which they are accountable to the other members for its success.  The problem often times is that everyone wants to be the decision maker BUT not be held accountable for the outcome.  So, I recommend forming "departments" and giving participating family members HUGE titles - like VP of Tenant Acquisition and Retention, VP of Property Maintenance and Improvements, VP of Capital Expenditures 1-5 years, VP of Fiscal Management and Planning.  Then define what falls under each title.  Hold business meetings and get reports from each...keep it formal; keep it all business.  The legal structure is important but playing well in the playground makes for common goals and wealth creation.