Property Management of Real Estate in Your IRA
Property management of the real estate assets in your self-directed IRA must be handled by a third party.
As the IRA owner, the IRS prohibits you from being the property manager.
While having a property manager is not required, you do have the option to hire one to collect rental checks and oversee maintenance projects, etc. If you do not hire a property manager, you can direct Advanta IRA to pay expenses (such as maintenance, taxes, and insurance) from your IRA by submitting the invoices to us, and you can also direct any income (rent payments) to be sent and deposited into your account. Our online account access allows you to check on the status of these items.
If your real estate IRA has partnered with others to acquire a rental investment, having a property manager would be beneficial in that tenants write one check to the manager for rental payment. The property manager would disperse funds relevant to the percentage of ownership each investor, entity, or individual holds in the property.
All of your real estate income and expenses are sent directly to Advanta IRA for deposit into or payment from your self-directed retirement account.
Please note that under no circumstances should you personally pay for an expense related to your IRA-owned property. You cannot receive reimbursement checks to you from your IRA.