Real Estate Management Company: Establishment and Benefits

Burrowing into brick in times of crisis, as well as in gold or other safe-haven assets, represents a safe investment for investors. Real estate investments are a great passion for Italian investors and entrepreneurs. However, the purchase of real estate is never a simple activity and expose all the family assets at risk. Precisely for this reason it is essential to apply efficient strategies to make these investments California real estate license.

In this article, the advantages of a property management company for the mere holding of the family’s assets and when it is time to set it up.

What is the Real Estate Management Company and why?

Owning real estate personally is the worst choice an entrepreneur has been able or decides to make. Like all investments, buying a  property  is also a risk.

Let’s think, for example, of when the company is unable to pay debts, or when creditors can rely directly on the entrepreneur’s assets. The  risk  of losing it is very high, so it is essential to invest in real estate following different strategies. And here it all depends on the legal form chosen for your business.

Today, to protect this type of investment, it is necessary to create what is commonly called  a property management company . A legal structure used to protect the family’s real estate assets and the proceeds from the letting of real estate.

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How to avoid that it is not a shell company?

Using the property management company requires special  attention . An attention that is then repaid by the advantages that can be drawn from using it (which you will see below).

The company, in fact, must be operational. If it is not, for the Revenue Agency, it can be defined as  a shell company  to which a certain discipline will be applied – among other things, very disadvantageous and penalizing.

In fact, the type of company that is created only as a  facade is defined as a convenience . A typical example, in the context of property management, is to create the company and then lease the property to family members. And maybe even at bargain prices compared to those set by the market.