Overview
In VRTrust, the Property Owner represents the legal owner of the property — meaning the individual(s) or entity that actually owns the real estate and is entitled to receive rental income.
Correctly setting up ownership is critical for:
Accurate owner statements
Proper trust accounting
Correct 1099 reporting
Clean bank reconciliations
This article explains how ownership should be structured, especially when an LLC with multiple members owns a property.
What Counts as the Property Owner?
Individual Ownership
If a property is owned directly by one or more individuals:
Each individual may be set up as an owner
Ownership percentages must total 100%
Statements and payouts are allocated based on those percentages
LLC Ownership (Most Common Scenario)
When an LLC Owns the Property
If a property is owned by an LLC, the LLC is the owner — 100%.
Even if:
The LLC has multiple members
Ownership is split (e.g., 25% / 25% / 25% / 25%)
The members are married couples or related parties
👉 VRTrust should reflect the LLC as the sole owner of the property.
How This Should Be Set Up
Create one Owner record for the LLC
Assign the LLC 100% ownership of the listing
All payouts and owner statements flow to the LLC
What About the Individual Members of the LLC?
The individual owners of the LLC:
Are not set up as property owners in VRTrust
Do not receive individual ownership percentages in the system
Do not receive separate payouts from VRTrust
Instead:
Their ownership percentages are handled outside of VRTrust
Income allocation, distributions, and tax reporting are handled by:
The LLC’s accountant
The owners’ tax advisors
VRTrust is not designed to track internal LLC member equity or partner capital accounts.
1099 Reporting for LLC-Owned Properties
When an LLC owns the property:
1099s are issued 100% to the LLC
VRTrust does not split 1099s among individual LLC members
The LLC is responsible for distributing income and reporting to members (e.g., via K-1s)
This aligns with IRS reporting requirements and avoids incorrect or duplicate filings.
Owner Access & Logins (Optional)
If multiple individuals need visibility:
They may be granted user access to view reports and statements
This does not affect ownership, payouts, or tax reporting
Access permissions are separate from ownership structure
Key Takeaways
✅ The property owner is the legal owner of the property
✅ If an LLC owns the property, the LLC is the owner (100%)
❌ Do not split ownership among LLC members inside VRTrust
📄 1099s are issued entirely to the LLC
🧾 Internal LLC ownership percentages are handled outside the platform
Need Help?
If you’re unsure how your property should be structured:
Confirm who legally owns the property
Set up that individual or entity as the owner in VRTrust
Consult your accountant or tax advisor for member-level allocation questions
For platform-specific setup questions, our Support team is happy to help.