Skip to main content
Message Font: Serif | Sans-Serif
No. of Recommendations: 0
Regarding the passive versus active income, Phil followed up with a question upon which I would really like an answer, if you know.

Here is Phil's question: "But back to OP's question. Clearly, if she uses the management company to do everything, she's not actively participating. But how about her other scenario; is that active enough? I've never been clear on this."

My question was.....if I get a management company to only screen tenants and collect the rents, while I actively manage the property otherwise, would it be active or passive income? I have my own vendors whom I prefer. When I rented the house previously, I could call whatever vendor and they appeared "johnny on the spot" in less than 12 hours to perform the repair, and I would either give them my credit card or immediately write them a check.

We hae some management companies here in Columbia, who add a markup to the repairman's invoice, pocketing the difference. I will not go for that, and I trust the people I have dealt with in the past. These are companies and individuals with whom my late parents also transacted business, and I value their reputations, service and quality of work.

Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.