Rental Property Investor · Plant City, FL · Member since 2015 · 1k+ posts · 379 votes
This is about 5 tenants who I have leased to anywhere from 6 months to 9 years. They have all known me as the owner. The long term tenants always paid, but it was always late by a few days, weeks, and even months at times. I've been slowly re-training them over the past months. Last month I gave them the news that I will be the manager that ownership has changed, and implemented a new set of guidelines in which to manage the property. July was the first month all of the tenants paid on time, and even some were early! I did not have to chase a single person for rent!
This is the difference of being a hobby landlord and having a business of rental property.
Software Developer · Vidor, TX · Member since 2015 · 922 posts · 639 votes
10y
Slap a notice to pay up or vacate the third day and they'll start paying or file eviction the 6th and eventually find someone who will. Week late is unacceptable. Burn the house down before I let someone stay a month rent-free with no consequences.
Note Investor · Orlando, FL · Member since 2016 · 135 posts · 79 votes
10y
Agreed @Adrian Smude. I am not the owner either; I just work for the man. And I can't let you do that because while I know it will help you out, I will lose my job.
We own our properties in land trusts so if you look on public record, you won't see MapleStar's name anywhere and MapleStar Property Management LLC is the property manager. MapleStar Property Management LLC even has management agreements with our trustee on each property for Section 8 tenants and anything legal. HUD needs to know you either own it or are under contract to manage it.
I have a referral program with cards asking my tenants to look for properties for me. And they always ask "so you own this house?" I tell them no. While we do have our own rental houses, we also manage those of others. We don't own this particular property."
Hobby landlords are the worst at managing their properties. They allow tenants to pay late because they do not have the back bone to be business first, they set their rents below market fearing tenants will move and they do not do rent increases for the same reason. Even worse is they rarely take the time to educate them selves on their rights or the rights of their tenants. Essentially they are ill prepared and afraid to be in business.
If hiding behind another name gets you by that is great but regrettably it means you do not have what it takes to be a landlord. As long as things go smoothly all is good but once you hit a bump in the road you still have the same landlord responsibilities as before. When the tenants again test you the likelihood is you will again fail. A bluff is only good till you get called on it.
Investor · Skagit County, WA · Member since 2016 · 1k+ posts · 807 votes
10y
@Adrian Smude Interesting to see how things changed just by you telling them that the management and ownership structure changed. That should not determine how a tenant pays rent, but so interesting that it does. Thanks for sharing!
Software Developer · Vidor, TX · Member since 2015 · 922 posts · 639 votes
10y
Slap a notice to pay up or vacate the third day and they'll start paying or file eviction the 6th and eventually find someone who will. Week late is unacceptable. Burn the house down before I let someone stay a month rent-free with no consequences.
Rental Property Investor · Plant City, FL · Member since 2015 · 1k+ posts · 379 votes
10y
Julie Marquez I agree it's a little hard to believe that people pay timely when the wording of your title changes. I had many many seasoned investors tell me this is how they do it and it solves many issues and it works as easy as they explained. Plus there's the benefit of not actually owning the property from an asset protection stand.
You stated in your original post that tenants had been paying late on a ongoing bases. This indicated to me that you are not capable of managing tenants. You state that you seek less drama, avoid damaging a relationship, dealing with tenant requests, all indicators of some lack of intestinal fortitude to operate your business. Landlords hire PMs to avoid the nasty business of dealing with tenants knowing they are not willing or capable of doing it themselves.
No shame in using a PM on the front line to do the dirty work but at some point in time that PM will have to deal with all the same issues as the landlord. You are correct in that they can do it as it should be done. No personal involvement, no emotion, no compassion. If changing hats allows you to shift your character to that extent then congratulations but it should be just as easy as the owner.
My tenants know that when I tell them something they are hearing it from the one that can make or break and they are smart enough and well enough trained to do as they are told. I personally do not need someone else on the front line doing my job but I understand many do..
Investor · Henderson, NC · Member since 2016 · 484 posts · 208 votes
10y
You know, as soon as your tenant google's your name, they can easily find this post, right?
Any time I've been a tenant I researched everything I could about the landlord. Quite easy, there is no hiding. I do the same for tenants. I find any facebook posts, forum posts, and any other random BS with your name attached...
San Jose, CA · Member since 2015 · 4k+ posts · 3k+ votes
10y
Originally posted by @Account Closed:
You know, as soon as your tenant google's your name, they can easily find this post, right?
Any time I've been a tenant I researched everything I could about the landlord. Quite easy, there is no hiding. I do the same for tenants. I find any facebook posts, forum posts, and any other random BS with your name attached...
It is true that if a tenant is savvy and tenacious, they can find out who owns the LLC, etc., or who is on the board or who is the general partner, etc., - it's public record. It took me a while to hunt down the name of the general partner where I rent - but I found him :-)
It's also true that most tenants wouldn't bother looking once it looked difficult.
Investor · Henderson, NC · Member since 2016 · 484 posts · 208 votes
10y
Originally posted by @Account Closed:
It's also true that most tenants wouldn't bother looking once it looked difficult.
But now that he's posted this on a public forum, they just have to google his name and this post will likely be on the list. Don't even have to do heavy research.
If you're trying to hide from somebody, it's not very wise to make a post on the internet about it under your real name.
San Jose, CA · Member since 2015 · 4k+ posts · 3k+ votes
10y
Originally posted by @Account Closed:
Originally posted by @Account Closed:
It's also true that most tenants wouldn't bother looking once it looked difficult.
But now that he's posted this on a public forum, they just have to google his name and this post will likely be on the list. Don't even have to do heavy research.
If you're trying to hide from somebody, it's not very wise to make a post on the internet about it under your real name.
Residential Real Estate Broker · Lakeland, FL · Member since 2015 · 90 posts · 49 votes
10y
But if you use land trusts you don't own it the land trust does and there is nothing on public record anywhere with your name attached to it. When you stand before the judge you can honestly stand there as the trustee or the manager. It is all lagit. Learn more about land trusts. It is the best tool to use for owning property. That is how Walt Disney assembled the land that he built Disney World on.
I have never understood why owners/landlords lack the ability to take ownership of what they have worked so hard to earn. If you need to hide you obviously have something to hide. If you can not reach out to a tenant and say "hi, I am the owner" there is something seriously lacking in the relationship. Tenants deserve not to be deceived by the person they rent from. Landlords should have the integrity to tell their tenant who they are.
If a property is owned by someone, even within a LLC, the tenants should have the legal right to know who that person, or persons, are.
I do not play this game with people and believe as my tenants they deserve my honesty.
Should tenants be allowed to hide behind a fake identity? If landlords can why not tenants.
Rental Property Investor · Douglas County, MO · Member since 2014 · 1k+ posts · 1k+ votes
10y
**Sigh**
This topic comes up regularly here on BP, and each time it is presented as an innovative new strategy that will fix all landlords' woes.
Reality is, there have always been and probably always will be landlords who need (or think they need) to hide their identity and see no problem with doing so. And there are also landlords who think that being honest with the tenant is more important. Neither side is likely to convince the other.
I believe in honesty. I do not want my tenants lying to me, and I will not lie to them.
I could legitimately tell them that Hubby and I are the managers of the rentals, and it would be true, but also dishonest. Our houses are owned by an LLC. The only member of the LLC is a trust. We are the managers of that trust. In all senses except legally, we are the owners, and that is what we tell our tenants.
Being in a small town helps keep us honest, too. Everyone knows our business before we do.
Rental Property Investor · Plant City, FL · Member since 2015 · 1k+ posts · 379 votes
10y
I didn't realize how much controversy this post was going to create. Obviously I'm on the side of "own nothing, control everything" I do not lie to my tenants and do not plan to lie before a judge if the unfortunate happens I go to court (I also run things to prevent from court).
@Gerald Demers said it best. But I'm not here to argue, there are many different ways to structure things and to run things. The most important in my opinion is that it works for you and you sleep well at night!