The Tax Reform Act of 1986
The Tax Reform Act of 1986 was a significant milestone in the REIT industry, as it relaxed some of the restrictions historically limiting REIT activities. Originally, management was legally obliged to hire outside companies to provide property leasing and management services, but this new legislation allowed REITs to perform these essential services within their own organizations. This change was highly significant because imaginative and efficient leasing and property management are key elements of successful and profitable property ownership.
The vast majority of today's REITs are fully integrated operating companies that can handle all aspects of real estate operations internally:
- Acquisitions and sales of properties ...
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