Calling myself the property manager vs. landlord

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Calling myself the property manager vs. landlord

Thom S.
Palm Springs, CA · Member since 2014 · 10 posts · 6 votes

I'm a newbie investor, with one SFH that I'm currently in the process of renting out. I've seen on BP and in a couple of books that some experts present themselves to tenants as the property manager, not the landlord. That makes sense to me, so as I've been showing my property that's what I did. Several of them have asked me outright if I was the landlord, and I evaded the question, but the impression I gave was that I'm not the landlord/owner.

So here's my question: when it comes time to pay me, aren't they going to have to put my name on the check? I clearly didn't think this through, and now I'm worried that I'll have to cop to the misdirection. Can anyone help here? I'm already in the thick of things, so I don't feel like I'll have time to create an LLC or some other business entity out of thin air. I'm kind of embarrassed to even ask the question, but I'm hopeful that someone out there can steer me in the right direction.

Thanks in advance for any help you can offer!

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Dennis M.
Rental Property Investor · Erie, PA · Member since 2018 · 6k+ posts · 9k+ votes
8y
I think this is stupid personally . I can’t fault a person that does it and I can understand why people do it but I find it unethical and dishonest . I don’t want the tenant lying to me so how could I in good conscience do it them . I’d be a hypocrite at that point and I have a higher authority to answer to . .. and Really Your not fooling anybody because it only takes a simple online search or call to the tax assets office to find out who actually owns the building even if it’s in a llc . I want the opposite I don’t want to hide .. I fully want the tenant to know I’m the landlord I have the power position and hold the authority . They need to know I’m not taking any crap from them or I’ll throw them out because I own the building
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  • Michael Robbins
    Property Manager · Henderson, NV · Member since 2018 · 501 posts · 317 votes
    8y

    I would suggest using a property management company.  It can provide somewhat of a buffer in terms of some liability and headache.  In addition, property management companies will keep you at market rent, screen tenants, follow fair housing laws, etc... 

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  • Karen MargraveBusiness Member
    Moderator
    Realtor, General Contractor, and Developer · Redding, CA · Member since 2009 · 7k+ posts · 4k+ votes
    8y

    Have you ever heard the saying "oh what a tangled web we weave, when first we practice to deceive"?  It's always best to be honest in your dealings. Now, cop to it, and explain that you didn't mean to mislead anyone, but this is your first property and wasn't sure how best to represent yourself. Also, in some states in order to be a Property Manager, you're required to be licensed, so don't set yourself up for problems, because I'm pretty sure CA is one of those states. Good luck. 

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  • Steve Vaughan
    Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes
    8y

    I rarely get asked. When I showed the unit I was under a sink or crawl or mowing or weeding or painting and was wearing the clothes to match.  Even when they help me push start my car after the move-in so i can leave, it never comes up...

    But I do have an s-corp PM co so rents go to that and leases are signed by me as an employee of that.  With the houses I think most know, but definitely not the apts.  Again, nobody asks for the most part.  In the past I've chuckled and said "yeah, right". All of my commercial apts are in multi member LLCs anyway, so technically not false. 

    I have never asked a tenant to make rent or a security deposit payable to me personally going back 16 years.

    A friend has had dozens of rentals since 1982. He is the owner, holds them under his own name, and let's the tenants know he is boss. He receives rent, payable to him, at his house and it works for him.  It depends on how you want to do it and if your personality type is a lion or not like my friend. 

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  • Brendon Woirhaye
    Rental Property Investor · Whittier, CA · Member since 2014 · 325 posts · 269 votes
    8y

    Always be honest and don't deceive, otherwise you will train them to do it to you (and some tenants are pretty good at doing that to you anyway).

    I can answer to PM, to owner, to landlord, to maintenance guy, to painter - I (and my partner) serve all of those roles from time to time.

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  • Amy A.
    Portland, ME · Member since 2012 · 616 posts · 550 votes
    8y

    Are you really the owner?  If you have a mortgage, pay property taxes, or have a spouse, you are only a part-owner.  If you don't work well with these "partners", you won't be an owner for long!  Tenants I'm showing properties to often ask me this question.  I tell them I'm one of many owners, and I'm unlucky enough to be the one doing all the work.  If things don't go well and I don't follow policy I'll get in trouble with my partners.

    1Reply
  • Kyle Cortez
    Real Estate Broker · Wilington, IL · Member since 2017 · 16 posts · 2 votes
    8y

    Hey @Thom S., being a young property owner in my early-20s I also wanted to distinguish myself as the property manager. I did not want to be the owner or landlord - an even worse name in my opinion that I absolutely hate being called. The property is owned by an LLC, I always sign my emails as "Property Manager," and I often remind residents that I have to run larger decisions by my boss. Yet, I still get called the "landlord" by several people. In the end, I don't think it makes a huge difference. Tenants will call you what they themselves are used to.

    Good luck, 

    Kyle

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  • Thom S.
    OP
    Palm Springs, CA · Member since 2014 · 10 posts · 6 votes
    8y

    @Amy A. Good point! In a very real sense, I'm the front person for a whole lot of others. This is actually not a bad thing to keep in mind.

    This has been an interesting and valuable discussion for me. Thanks @Kyle Cortez for your insight as well. In the end, I'm the main point of contact for the tenants, regardless of my title, and they're going to call me whatever they want. As long as they pay the rent, follow the rules and take care of my house, I'm okay with that.

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  • Val Csontos
    Rental Property Investor · Annapolis, MD · Member since 2014 · 214 posts · 140 votes
    8y

    In my experience, most of the time when people ask me if I am the owner/landlord/property manager, they usually have pretty bad financial situation, and often time they were already rejected by the large complexes, so now they are taking their chances with the" operator owners" , and they are hoping/praying that they will not get another rejection for their application fees. 

    My response to their question is always truthful: We manage this place professionally with credit checks and employment verification. This usually discourages the flaky types from applying.

    1Reply
  • Anthony Wick
    Rental Property Investor · Ankeny, IA · Member since 2017 · 2k+ posts · 3k+ votes
    8y
    I simply don’t believe in such misdirection, especially when just starting out and you only have a few properties. Let me ask you this...are you ok with the tenant lying to you? Maybe not being truthful on who is going to live there? Hopefully, the relation between you and your tenant will be long and happy. I don’t think the start to that is by lying. Also, if you can’t make the tough decisions as the real landlord, then you either need to change or not invest.
    0Reply
  • Stone Jin
    Rental Property Investor · Chandler AZ and Sylvania, OH · Member since 2009 · 708 posts · 561 votes
    8y

    when people ask me if I'm a property management company or owner, I always say both. I have a management LLC that only manages my properties. With that said I always tell people that the lease is a legal contract however the tenant and landlord is going to relationship outside of that. In terms of your name on checks, just sign up for a service like Cozy where they send you payments online and they never have to write your name on anything.

    0Reply
  • Jim ShontsBusiness Member
    Property Manager · Lone Tree, CO · Member since 2014 · 32 posts · 35 votes
    8y
    Originally posted by @Amy A.:

    Are you really the owner?  If you have a mortgage, pay property taxes, or have a spouse, you are only a part-owner.  If you don't work well with these "partners", you won't be an owner for long!  Tenants I'm showing properties to often ask me this question.  I tell them I'm one of many owners, and I'm unlucky enough to be the one doing all the work.  If things don't go well and I don't follow policy I'll get in trouble with my partners.

    I second this logic.  When I am asked this question, I do share that I am PART of the ownership group on the property and decisions about upgrades, rental rates, etc are made with that team.  Now that I am a Realtor in Colorado, I am also required to disclose that on my listings as well that I have an ownership stake in a property in the advertisements.

    I also have not really seen a difference with the tenant's treatment of me as the property manager vs being the owner except one time a tenant did try to pressure me into paying for a silly upgrade saying that as the owner and I could afford it and the $100 month rent increase should pay for the new ceiling [The upgrade was to re-texture the whole ceiling of a 1000 sq foot apartment because it had swirls and minor hairline cracks (built in 1920) and this tenant did not like the swirls -- changing the swirls would cost thousands and not result in any more rent]

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  • Rahpheal Hunter
    Real Estate Agent · Chicago, IL · Member since 2014 · 12 posts · 4 votes
    8y

    Yea I think if you are going to be the one responsible for maintaining the property and the relationship with your tenants, being honest is the best way forward. You don't want to have to be worried about keeping up some charade for the duration of the lease.  

    In the past I have always told my tenants I was the owner and that I was interested in the keeping the property to a certain standard for their comfort and implore them to reach out as soon as an issue is noticed. I also schedule quarterly inspections so I can stay on top of all maintenance issues and be proactive.This allows the tenant to know I'm an engaged owner/manager/landlord and has resulted in a better experience for me and the tenant.

    Hopes this help

    Happy investing!

    0Reply
  • Randy Sanders
    Member since 2018 · 5 posts · 1 vote
    8y

    I think those are just fancy titles, it depends on what their responsibilities are...

    0Reply
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