House Rental, When do I say I'm living in Apt. Below?

Question

So I bought my 1st property. Its a Multi-level with a walk-out basement. I'm making the downstairs into an apartment for myself and then renting out the remaining 3 bed 1.5 bath upstairs.

I'm not sure at what point to tell potential tenants that I will be living in the downstairs.

Do I put it in my advertisement or wait until right before the back-ground check?

When do I tell potential tenants that I will be living in a downstairs apartment?

Account Closed · Answer

@Herly C. Most tenants will not think to double check. If they find out and approach you about it, just let them know that you always identify yourself as the property manager in order to maintain a good relationship with your tenants.

@Thomas S. Personally I think it's less of "being afraid to take on responsibilities" (you're still doing all the work, just choosing to go by PM instead of Owner) and "hiding" as much as it is about that separation from you and the tenants. They will often cause much more trouble knowing you're the owner and can change anything you want about the property. This can lead to unnecessary phone calls, requests, sob stories, etc... And when handling a situation like that as a PM, you can easily take the emotion out of it for the tenants when they don't believe they're talking to the owner. It's about working smarter, not harder. Just my thoughts!

Account Closed · Answer

Hey Dustin, whatever you do, do not say you're the owner. Tell the tenants you're the Property Manager, and feel free to let them know you live in the unit below at any point. My advice is better sooner than later, but it's up to you.

Thomas S. · Answer

If you are afraid to take on the responsibilities associated with your tenants knowing you are the landlord you do not have what it takes to be in this business.

Be as honest and up front with tenants as you expect them to be with you or turn over the responsibilities of your property to a PM and go hide somewhere else.

You either operate as a professional business or let someone competent do it for you.

When to tell them you are living down stairs....when ever you want to bring it up in the conversation. It is not a secret.

Account Closed · Answer

I agree with this recommendation. If the neighbors ask for something, you can say you're just the property manager and have to check with the owner. If the owner says NO, then the faceless owner is the bad guy and not you. Also, I find it better when the property manager is living close by in case something breaks and needs fixing.

Jennifer T. · Answer

My own home is a duplex. I actually include in my rental advertisement that I live on-site. It's been my experience that potential tenants...at least the good ones, lol...see that as a positive aspect of the place.

Account Closed · Answer

Doesn't it boil down to having two business cards created (at least in your mind)? One card says Owner and the other card says Property Manager. Both business cards tell the truth. The question then becomes which business card do you usually give out to people? The choice may just be a matter of personal style.

Joshua Weidman · Answer

@Dustin J Woods,

When I bought my first rental property I was so excited to be a landlord I think I told the entire block the place was mine. When the tenant moved in, I realized my mistake. Account Closed is absolutely correct. Don't let the tenant know you own the place.

In 2010 I started a property management company with a friend of mine. In the beginning, we did everything ourselves, including all of the interactions with the tenants. It became much easier to deny tenant requests when I had no decision making authority for the property. When a tenant wanted a new ceiling fan, I had to ask the owner. If the rent was late and the tenant wanted to late fee waived, I had to ask the owner. And because I wasn't the decision maker, it became much easier to say no.

Today all but one of my properties are managed by a 3rd party. The one property I do manage is about a mile from my house, and then tenants think I work for the management company. All the calls come to me, but the calls and emails are to Josh who works for the property management company. It's made a huge difference in my bottom line and my sanity.

Good luck!

Jennifer T. · Answer

I also just replied to your message. I tell potential tenants that I'm the owner and live on the other side.

Especially for my personal duplex, I feel it is especially important to be honest that I am the owner. Where I live, public property records are an easy 30-second search on the Assessor's website. While most people would probably never think to look it up, they could. And I don't want to start a business relationship off by lying. Even if it was lying by omission.

Plus, if I'm giving a tenant a "hard no" or in a tricky situation with them. That's my "hard no" and my tricky situation and I have no qualms with that. Pretending I'm something else sounds more complicated and I don't see much advantage.

Dustin J Woods · Answer

Do you say PM lives onsite or Owner lives onsite?

Mindy Jensen · Answer

@Dustin J Woods , I'm assuming you will have a completely separate space with no need to enter their space? Will the basement door have a lock so they can feel safe that you aren't coming into their space? Are you creating a duplex legally? Disgruntled tenants have no limits, and are happy to report your "illegal" anything, so make sure you're doing this by the books.

And I'd advertise it as a duplex once the permits and occupancy certificate are granted.

House Rental, When do I say I'm living in Apt. Below?

House Rental, When do I say I'm living in Apt. Below?

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