By David Crown, Founder and Chief Executive, L.A. Property Management Group

There’s an old joke that says working with family builds character more often than the family business. It also builds group texts you can’t mute and meetings that somehow turn into debates about things that happened on vacation. I say this as someone who runs a business alongside my sons—I’ve seen the upside firsthand. Gratefully, there’s been far more upside. But I’ve also worked with families who came to us after things went sideways—sometimes badly sideways. In one case, after more than $500,000 in legal fees… just to resolve internal disputes.

When Family and Business Collide

Most family portfolios don’t start with a formal system. One person takes the lead, others get involved over time, and decisions happen as they come up. That works early on. But as the portfolio grows, so do the complexities. Responsibilities start to overlap, communication becomes inconsistent, and decisions – and boundaries – get blurred. It’s common for resentment to enter the picture here, too.

If you don’t install a system early, the portfolio will eventually install one for you—usually through conflict. For the family that spent over half a million dollars suing each other, it didn’t happen overnight. It happened exactly how you’d expect—no system, no rules, and disagreements that escalated into litigation. The result wasn’t just financial. One brother was effectively removed from day-to-day control. And the judge ordered the family to put a manager in place, to do what should have been done a long time ago: operate a growing portfolio with a defined system and a clear operator. I’ve seen families where one person wants stability and long-term tenants, while another is pushing to increase rents and maximize performance. Both perspectives make sense. The issue isn’t the viewpoint—it’s the lack of alignment.

When you don’t have structure, every decision can become drawn out. And those interactions can get personal fast. Rent increases, repairs, tenant issues—none of them exist in a vacuum when family is involved. At a certain point, someone must create a clear separation between family dynamics and business decisions. In most successful portfolios we see, that role is handled by a professional manager who operates from structure, not emotion.

Clarity Drives Better Decisions

If there’s one thing I’ve learned, it’s that unclear roles create unnecessary friction. We work with families to establish a clear structure. Some decisions stay with ownership, while others are delegated to management so things can move quickly. Day-to-day operations—leasing, maintenance, tenant communication—shouldn’t require a group vote. Larger decisions, like major renovations or selling a property, deserve a more thoughtful process, but still within a defined framework.

Equally important is aligning on strategy. Every family has different perspectives on risk, income, and long-term goals. If those aren’t aligned upfront, you’ll feel it in every decision that follows. Once you have a shared direction, decisions become more consistent and a lot less stressful. We rely heavily on data to anchor decisions. I’ve found that when conversations are backed by real numbers—market rents, expense benchmarks, performance metrics—it takes a lot of the emotion out of it. You’re no longer debating opinions—you’re aligning around the facts.

The Value of a Neutral Third Party

One of the most valuable roles a property manager plays is acting as a neutral decision-maker when conversations stall or become personal. Without that layer, families often find themselves revisiting the same disagreements over and over, with no clear resolution. We also help structure communication, so it doesn’t become overwhelming. Without a system, updates can get scattered across emails, texts, and calls. With the right approach, everyone stays informed without feeling like they’re constantly in a meeting.

Action Item

If you have a property manager, establish this as a non-negotiable: all communication must be shared with every ownership member, at the same time. No side conversations. No staggered updates, and no selective information flow. The simplest execution is also the most effective: every material update is sent via group email to all stakeholders simultaneously.

The Unique Ingredient

Most family-owned portfolios start by bringing something very special into an ownership group: love and trust. You can’t manufacture it—and once it’s damaged, it’s difficult to rebuild. And that’s exactly why you have to prioritize putting protections in place. With structure, clarity, and alignment defined, everything gets easier. Decisions move faster, performance improves, and the portfolio operates like a smartly run business. And, at the of the day, business is transactional. Family is not—and protecting it should never be negotiable.

David Crown is the Chief Executive Officer of Los Angeles Property Management Group and has over 30 years of experience managing all types of income properties. He can be reached directly at (323) 433-5254.