A well written management contract should clearly spell out what is expected of both the PMC and the owner, to PROTECT both and avoid misunderstandings.

The bottom line is this: Concealment is not asset protection, proper (time consuming and expensive, I know) management, and good, prudent, practices (ditto), WHICH ARE ADHERED TO, and insurance (expensive), are needed for asset protection.

There are ways to mitigate the costs and protect yourself to the extent possible.

And as I explained earlier, your investment is protected by real property, so your risk is extremely low. 

We have a 14-page management contract that we've added our real experiences to over the years, with the intent of protecting both us AND the landlord.

👏Regarding subcontractor contracts, it’s essential to have a well-thought-out document to ensure clarity and protect all parties involved.

@Kyle Kulhanek To retitle your Chicago condo into an LLC for liability protection, start by forming the LLC with a clear operating agreement outlining ownership and responsibilities.

Include a buyout clause allowing you to transition to sole ownership after two years, based on a pre-determined valuation formula or market value.Use an LLC to hold the property for liability protection and pass-through taxation, ensuring both partners benefit from depreciation to offset rental income.

The market is TOUGH right now for LTRs and STRs.Hope this helps - we are trying to protect you.

Having a mortgage and your normal STR insurance is already 2 levels of protection.