Living here, what to say to Tenant

[Mariah Monson]

My fiancé and I just purchased our first property, a duplex, and we will be living in one unit while renting out the other. I've heard it recommended to tell tenants that you are the property manager rather than the owner because it can improve your relationship and they are less likely to come after you (Note: we currently don't have any issues and don't plan to, just being cautious). 

But what do you say if you live at the same property? I feel like they are definitely going to know we are the owners. Is that okay? Has anyone had issues with that? Any suggestions are welcome. 

Thanks so much!

[Kevin Sobilo]

@Mariah Monson, a few thoughts.

1. Do you want your tenants to be honest with you? If so, then you should expect to be honest with them. Lying about who you are isn't honest.

2. In many states you have to be a licensed real estate broker/agent to be a property manager. So, its hard to lie about that to a knowledgeable tenant.

3. If your property was owned by an LLC it would be easier to convince tenants or hide your role, but as your primary residence its probably in your own personal name.

4. From a practical standpoint, add an umbrella policy to cover liability in case you get sued just to be safe.

5. Think carefully about how you will manage the relationship with the tenant. If you become too friendly as neighbors that could impact your decision making as a manager of the property. This is why people don't like renting to friends/family because its human nature to mix emotion into the decision making and that makes dealing with managing the investment messy when things go sideways.