Posted by John on April 21, 2005 at 06:43:57:
I am a new landlord myself.
The way I set it up is my LLC is the owner and I am a manager for the LLC. The tenants make rent checks to LLC and I just work for the company. That way I am not impowered to make on spot decisions, or consessions,ect. I always have to check with the boss.
It has worked out well for me.
Prop Mgr or Owner as Landlord? - Posted by MG
Posted by MG on April 20, 2005 at 14:20:18:
Just a first-time landlord here trying to get off to a good start…
Assuming I must hold title to my first rental property in my name (for other reasons I won’t go into now), would it be advisable to appoint my LLC as property manager and “Landlord” on my lease agreement? Or does the “Landlord” on the lease need to be the actual legal owner? If it can be either, is it generally advisable to have it one way or the other??
My instinct tells me I should have the LLC (not me personally) serve as “Landlord,” but wanted to get the expert thoughts of you all. Thanks in advance.
Re: Prop Mgr or Owner as Landlord? - Posted by Rich[FL]
Posted by Rich[FL] on April 21, 2005 at 15:03:32:
At a minimum, there is no reason why you can’t transfer the property into a trust after closing. It’s legally allowed and won’t cause a problem with your lender.
That said, you can have the tenant make the checks out to the trust and you can hold yourself out to be only the manager. If they ask (most don’t), just say that some trust owns it and you have to check with them if they have questions. Even if you do have to hold title in your name, don’t tell the tenants you’re nothing more than the manager of the property (you ARE managing the property…that you own!).
As for the LLC, you shoud still be the “manager” and the LLC (or trust with LLC as beneficiary) the owner.
Hope this helps.
Rich