I co-own several investment props. with other family members.
Unfortunately, everytime something needs to be repaired no one can agree to do it. It is directly leading to the deterioration of one of the props.
Here is a typical scenerio: I get several bids for (necessary) work such as a roof repair. I present the bids to family members only to be to be blocked. I am told, "those prices are crazy" and "my friend will do it for less", etc., etc. Of course they have no idea what the cost of repairs really are because they are not out there on the job. What can I do to break this cycle?

Seems like whoever is the lead property manager needs some authority to make decisions within a certain cost limit. When it goes over that limit then maybe you need 2 partners to sign off, then when you hit the next limit, maybe you need everyone to sign off.

Lastly, I think you should get the family together each year and talk about capital projects and set a budget. As long as you are within the budget, you should be able to proceed.

When you are told by one of them that they can get it done cheaper make them get it done cheaper. "Put up or shut up" usually works.

You are doing a primitive form of fractional ownership with your families. You may want to have a by-law and run it like a business. Because doing major repairs is a serious business. You need to have a governing body that makes important decisions for these homes. Fractional homes that are not well managed can run into trouble when something big comes up. There is little way to reach a decision.

I own several properties with my friends and also family members, and it's always understood who the property manager is and that person (me) always makes the decision about real estate management issues. That decision is very rarely questioned.

But before I got into these arrangements, I knew that the people I was partnering up were easy to deal with. Sounds like you've got a different situation on your hands - there are simply some people who you shouldn't do business with.

Perhaps you can divvy up the responsbilities between the properties. Each family member could be responsible for the maintanence of one property each (if you have several) as that property's manager.
I only suggest this because I figure if they can't agree on how each property will be maintained-- they will probably not want just you to be responsible for all of them.
Either that, or tell them that if they have someone who can do it cheaper they have X amount of days to get the work done or you will have it done by your cheapest bidder. Give options, but also give deadlines to keep things rolling.
Good luck, sometimes family is the hardest to work with because you can't fire them!

I agree - this is a business and should have a single CEO able to make the decisions and move on.

Everyone should agree to get it setup right - pay taxes - have reserves - pay salaries - declare dividends if appropriate - etc.

It can do a family more harm then good if it is not. We had a Coal Company and Real Estate Investment Co - even though it was setup well - it fractionalized when some got greedy so it was elected to be sold off and ended. Certain family members can ruin every good thing - I hope you avoid that.

Well, the immediate answer is to hand over the property management to one of them, and tell them to collect bids and assign the job as they see fit.
But the bigger solution is not to co-own rental properties with family members. Actually, I'm of the persuasion that very few business partnerships are actually a good idea, and that it is a wise rental investor who owns their rental properties by themselves.
Maybe the answer is to sell the rental properties and start from scratch, or buy them out, but either way I would urge you to disentangle yourself from business partnerships with family members.
Good luck,
_________________________
Brian
Rental Agreement

I have to agree with Web, family businesses are always difficult, and real estate partnerships with family and friends can be hell. Actually any partnership in real estate without a designated Manager is almost certainly doomed to failure. I too suggest you get out and invest on your own.