How do I hide I am the owner?

Question

Hi all!

I'm new to the forum. I'm a 24 year old from Massachusetts. I work as an analyst at an IT company and am thinking about buying my first three family home. The one i am currently looking at has two 2 bedroom units and a one bedroom unit. I would live in the one bedroom unit and use the rent from the other two units to pay my mortgage. Eventually when I move out, I'll rent out all three. My concern- no one is going to take a 24 year old girl seriously as a landlord. My plan is to say it is a family business and my parents own the property, I am just living in it as a property manager. Do you think that is a good plan? Would you recommend having them pay me their rent or maybe setting up a PO box? I would want to save money by not hiring a property management company, however, I know that telling them i'm the owner is a bad idea. Ideas would be appreciated!

Thanks,

Tiffany

Wayne Brooks · Answer

You're selling yourself short. I've never agreed with the "hiding that I'm the owenr, just the manager" dodge game.  I'm the owner, the buck stops here, it's my decision, this is how I operate, period.  THAT is how people take you seriously.

Aristotle Kumpis · Answer

You could file a DBA. Then you can create any name and use that. But a PO Box is a great idea for any business. That way, the tenants can't trace that back to your physical address. I do not think it's a good idea that you know your tenants. If you can, just hire a good management company.

Richard C. · Answer

Agree with the other posters.  Put on your big-girl pants and do the job.  You're already doing an intellectually-demanding job in a male-dominated environment.  You can do this.

Tyler E. · Answer

@Tiffany  .

Thanks for posting/asking this! I was under the impression from BP and a few people I've talked to being a landlord is like being a superhero. You need an alter ego. Thanks to everyone else for posting and clearing up the fact that it's not horrible if your tenants know who you are.

Lisa Weiner · Answer

Hi Tiffany- Considering I'm a 25 year old female who just entered the real estate profession I understand your concerns as I had that mentality for a while as well. Believe it or not I saw the quote "young is superior" one day as I was driving to work and it really stuck with me. You are not a 24 year old girl, you are 24 year old professional so be proud of what you can accomplish at such a young age and don't hide it from anyone!

Steve Vaughan · Answer

Hi @Tiffany  .  Welcome to the site and congrats on your first house hacking multi-family!  Great strategy!  I was just wondering how your parents have dealt with this issue?  Have they had tenants make their rent checks out directly to them all these years?  Have they just made it known they are the owner?  How has their method worked out for them?  What a bonus to have parents with experience in this arena!  Tap it.

I can't fathom having 3 dozen families making their rent out to me personally every month. What a tax/bookkeeping mess, even if you have a separate acct.  I chose to be an 'employee' of my mgt co from day one.  I'm not trying to be deceptive or misleading.  I'm not too scared, or want to pass the buck.   I wanted a corporate name and separate acct to deposit checks to and draw expenses from.  It also works well with drama, crazy requests, applicant denials, etc.  Also, when good folks want to move out, they ask if 'we' have any other rentals that may be larger or in a different area.  A mom and pop shop probably loses a lot of good tenants because the tenants didn't know they also had houses or whatever.  Some folks have been with 'us' for 13 years in different rentals.

It is different at my own house, that also has a rental.  They know I own it, but still make rent payable to the mgt co.  When not living in your own rental, I highly recommend being a manager with an actual mgt co for the rentals you own!

Mike Hurney · Answer

@Tiffany  . Welcome.

If you're in IT, then you know it would take a 12 year old kid about 2 minutes to "uncover" your ownership.

PO Box, Yes. Cash or check - in hand only.

Joe Kling · Answer

Tiffany -Are you capable as a property manager? Ask yourself that question and then act accordingly. If you're capable own it and others will believe it too. If you don't think you're capable, hire a property manager. People will treat you like the person you repeat yourself as. It sounds like you're a savvy, intelligent person so act accordingly.

Tiffany B. · Answer

Thanks everyone. I have no doubt in my ability to do it! I'm just a little surprised because i've been lurking around these forums for a while and the consensus seems to be "never let them know you are the owner".  I appreciate all of the responses so far! Just an FYI- my parents do own rental properties so that wouldn't be a lie. They have way more expertise in being landlords and i will be asking for their help when i run into issues since i know they have been there done that. It's great to hear all of your points of views though, the advice is so valuable to a new investor like me.

How do I hide I am the owner?

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