Calling Yourself The "Property Manager" or the "Owner"?

Question

Hello,

I am wrestling with the idea on what to name by rental business, and what title to give myself in my newly formed company for rental property.

My goal is to build many rental properties and manage them myself. I have only 1 now.

I have seen many threads and posts about people designating themself as the "Property Manager" instead of calling themself the "Owner" to their tenants. I have went back and fourth on both methods. Here are some thoughts:

1) Property Manager Designation If I call myself this, I feel that I will be deceiving my tenants. I like to speak the truth and while it may be easier and less confrontational to call myself just the Property Manager if a problem arises, I feel it will be not the truth.

I also want the tenant in most cases to know I am the decision maker whether it is for a problem/issue or not. I want the tenant to know that I mean business when I tell them something (like a rule, violation, etc). I don't mind telling a tenant how it is and being confrontational if I need to be. I like things done right and not playing the blame game.

2) Owner Designation I like all things about calling myself the owner, and my tenants will know I am the decision maker. However, there are a few potential drawbacks. 1... I don't want any crazy tenants getting pissed at me and trying to come after me personally--coming to my personal home mad because I evicted them, charged a late rent fee, etc. 2... I also don't want them thinking that I am the wealthy owner and trying to take advantage of me by suing me, or anything else.

Also, what do you guys think about naming my company with my personal name, like if my name was John Smith -- calling my company "Smith Properties"? Do you think it would be best to have a totally separate business name, but still label myself as the owner?

I guess my main concern is privacy, and more importantly safety. I don't plan on buying war zone properties or having crazy tenants, but you never know what can happen. I just don't want a tenant getting mad at me because I have to evict them or something, then trying to come after me personally.

I would like to name my company after my last name like "Smith Properties" but this is a dead giveaway that I am the owner. If I name my business something like "Golden Properties" then it will appear more like a separate business and I can say that I am only part owner or that I need to check with my partner for decisions if I need to, that way all the blame wouldn't be on "me" in a tough situation.

What do you think?

Dawn Anastasi · Answer

I don't have my own name for the company name just in case I wanted to sell the company in the future. The name is more generic.

I am the owner and the property manager of my rentals, so the buck stops with me. And it's my buck, and I'm pretty frugal. If a tenant wanted carpet and I didn't want to put in carpet, I would just say "no". So far I've never had that situation come up.

Sam W. · Answer

Craig Sturgill

One of things I enjoy about real estate investing is that I am the boss. I don't want to -- nor do I feel the need to -- hide behind a mirky owner/manager arrangement. As I wrote earlier, the buck stops with me. I know it and the tenants know it. In my mind, if I can't look a tenant in the eye and give them a definative "yes" or "no", perhaps business ownership isn't for me (or I should get a management company to look after things for me).

Sam

Kelly N. · Answer

Hi Craig,

We went through this same debate, and decided to just go with 'owners'. The information can be easily looked up online here, and though we have an LLC and use a PO box for rent checks etc, our home address can be looked up easily, so we figured we might as well be open about it.

We went with a generic name, but I don't think that matters much, just a preference on our part.

Like Bill Gulley suggested, I do use 'we' all the time, but I mean my husband and I.

Also, I had planned on not disclosing too much about our investments, but when asked directly by one of my tenants I have a hard time not telling the truth. The question was whether I was the owner, and if so did I buy the whole house? Yes and yes. Followed by 'How many houses do you have?' This is our first one!

Kelly

Bill Gulley · Answer

None of my companies included my name, but there was never any doubt that I was the man. I really never used either term, manager or owner, unless I needed to say I own it. When I spoke to most, I used the plural "we", we can't do that, we need to have, we will do this, so that it was not a personal matter where "we" might imply partners or the employees of the company, but it really meant my wife and I. :)

Jerry W. · Answer

Craig Sturgill I have done it both ways. Originally I was in a company with others and it was nice to be able to say I need to check with the other owners before I can get back with you. I personally bought 2 SFRs and every tenant in those knew I was the owner. I actually prefer being thought of as a part owner, but in the end it only made a difference in probably 1 or 2 situations. You will actually have to testify in court if you evict someone, so being honest is important. Even if you are the owner I think its important to say I will have to get back with you on that, or I need to consult with someone else before I can give you an answer. It was best when screening tenants to be able to say I have to consult with someone else and go over all the applications before I can tell you if you are the tenant chosen. Do whichever one you are comfortable with. If you wish to say you are the manager when asked if you own them, say you are the manager, dont deny you are the owner.

Tim G. · Answer

I didn't have a choice, the disgruntled former manager sent my new tenants a letter with all of my contact info listing me as the owner.

I guess I could have lied my way out of it but I'm okay with it. I'm young, its my first place and frankly I just don't think it matters too much.

I have way bigger fish to fry in life, if that were my biggest problem. Well, that would be swell.

Craig S. · Answer

Thanks Ali Boone, Sam W., and Dawn A.. This is good feedback. I own an insurance agency where my name is in the business title and that actually sometimes seems to help people with trust, expertise, etc. But with real estate rentals, that doesn't seem to matter quite as much.

I do have to admit, I like to be known as the one who started the company, especially when it grows large, however I don't want to do so if it involves additional added risk...

At this time I am thinking the best route to go is to name my company something generic, however call myself the owner of the company until I either grow larger or see a problem with it sooner. I can also call myself a "Part Owner" if I want to still have the authority as a decision maker, yet still retain some room for "blame" if I need it.

Sam W. · Answer

Hey Craig,

My take...

I'm with you regarding honesty. I dislike the clunkiness of pretending to be someone else - reminds me of when the jig was up for the Wizard of Oz My, "Pay no attention to the man behind the curtain".

Tenants know I'm the owner and "the buck stops here"....for good and bad things. Also, have never had a rogue tenant come looking for me (but that certainly doesn't mean it can't happen).

With regards to an LLC name, I like using words rather than personal names. Just me.

Sam

Ali Boone · Answer

I had a landlord one time that I just found out recently, years later, that she was in fact the owner. The whole time I thought she was just the manager. Ha. Totally tricked me. She talked some about her reasons for the trickery and they all made very good sense to me. The main being that she said her tenants didn't hold her to having so much (if any) power in terms of things they wanted. Like if a tenant tried to convince her different carpet should be in there, she said they were much quicker to get off it if she said she'd 'have to check into it' instead of them knowing good and well it was up to her, so they wouldn't let up.

There are pros and cons for sure. I think I'd veer the way of not claiming to be the owner. Even good tenants may try to push harder knowing you have all the power. Also, from a liability standpoint, it's always better the less someone knows about who owns what.

Whichever way you go, I would recommend not using your name in the company name because even if you start out telling your tenants you are the owner, you may change your mind later but you'd be kind of stuck if your name is in the company name. Plus, again, the less anyone knows about the ownership of a company, the better.

Calling Yourself The "Property Manager" or the "Owner"?

Calling Yourself The "Property Manager" or the "Owner"?

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