The income for the LLC is business income, not rental income. The LLC is a property manager and not an owner who rents out property to others.
The rent collected would be an expense on the business which will reduce the income to the amount of property management fees only. You can label it 'Rent Fees to Owners' and list the amount paid to the owners.
Once all expenses have been entered then the net profit will be sent to the K-1s for each partner or shareholder. This is basically the same process indicated by Carl above.
@LLarsen1
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