Is it true that the owner and the management agent must be the same business entity?

The statement that the owner and the management agent must be the same business entity is false. In multifamily housing, it is common for the owner of a property to engage a separate management company to handle the day-to-day operations of the property. This separation allows for specialized management, as many owners may not have the expertise or resources to manage their properties effectively.

Having different entities for ownership and management can facilitate better resource allocation, provide a broader range of services, and allow for independent management to concentrate on maximizing property performance while the owner focuses on strategic investments. Regulatory frameworks also support this arrangement, permitting owners to engage third-party management firms that can bring more experience and efficiency to property operations.

While some specific contracts or state laws might have particular requirements, the general principle remains that it's not necessary for the ownership and management functions to reside within the same legal entity.