NJ: Opening a Property Mgmt Company to manage my own Properties

[Robert Bolejszo]

I currently have two properties (and plan to grow) and my attorney advised against me opening and moving my properties under a LLC, as I financed the properties under my name and I'm told mortgage lenders frown upon this practice.

So my thought was to open a property mgmt company LLC to manage my own properties for a few reasons. I'm told it can provide some additional tax benefits that a passive income property LLC cannot provide and I can share the LLC name with my tenants instead of my personal name. I understand that this LLC won't provide legal protection on my properties as they actually won't be under the LLC.

My questions:

1. Do you need any license or something else I should be aware of?(when only managing your own properties) when opening a property mgmt company.

2. What are your thoughts on this idea? is it a good idea for what i'm trying to achieve or no.    

[Linda Weygant]

Originally posted by @Frandy Blain:

@Robert Bolejszo 🤔Ok why would your attorney advise you not to place the house under an LLC there's tons of Taxes benefit. If you're flipping you place your properties under a Corporation but if you're renting out them under and LLC speak to your Tax Accountant

There are no tax benefits to opening an LLC. Converting to personal ownership to an LLC is purely for liability limitation.