[loeg]

> I agree some of the LLCs are investment vehicles for individuals, who buy a property, wrap it in an LLC, and pay a management company to rent it out, but that's a bit different (these are just passive investors buying into an asset class managed by professionals).

No, creating an LLC for your RE business does not require the use of a management service. The exact same individual landlords can own properties through LLC as without; the LLC just grants them some liability protection.

[_delirium]

It doesn't require it, no. Nonetheless, the majority of properties are professionally managed, so it is simply false that most landlords are small-time individual owners doing it themselves. If everything under "individual" and "LLC/LC/LP" ownership were small-time individuals doing it themselves as a family business, we'd expect to see closer to 78% of properties be self-managed, not 42%.

The rate of increase of professional management is also pretty high: the 2015 survey had 43% of properties professionally managed, which had risen to 54% by 2018. I'd be willing to bet it's more like 60%+ now as there's been quite a bit of buying into the rental market by large investors.

[nsxwolf]

A lot of small-time individual owners with single properties pay a management company a monthly fee to handle leases, maintenance calls, stuff like that. It saves a lot of headaches. Is that what you're considering "professionally managed"?