Owner vs. Prop Manager

[Nick Lemieux]

Hey Everyone!

So I am on track to close on my first property on November 30th. It will be a house hack 3BR 1.5 Bath, where I plan to live in one room while renting out the other 2. Being in Boston, I think I will be able to get it rented quite quickly. However, I'm unsure how I should approach prospective tenants.

I've read before that saying you are the property manager ( owned by a family, friend, etc) instead of owner is the way to go about it. But, I also don't want to have tenants feel like I deceived them. Inevitably I could see one of my friends letting it slip some night. How does everyone else handle it??

Thanks!!

Nick 

[Bettina F.]

Nick, there can be a lot of testing by tenants when you are a LL.   As a new LL , it  might be easier to pretend to be the manager if you have "nice guy syndrome" and  if you want to avoid getting burned by tenants.   All this ruse does is buy you a little time ("I have to check with my uncle" or "I have to check with my partner") when someone asks you if they can be late on their rent or paint their room purple. 

If you already have life experience saying "No", can stick to your guns, and can channel your inner Thomas S. , you do not need this ruse.

Within your first year you will either be burned by tenants, and decide LLing is not for you, or toughen up and no longer need the ruse.  It is all about your self- confidence.  Increase your self confidence by knowing your local laws, and knowing what to do in a worse case scenario.  Know the eviction process.  Have some snappy comebacks ready for common tenant requests.  Have a screening process in place and follow it.  Have enough money in the bank so you do not make financial panic driven bad decisions.

In either case, have a strong written rental agreement, and written house rules that your tenant signs before moving in.  Remember, it is easier to start out tough, and then loosen up for good tenants IF YOU CHOOSE, then start out loose and have to toughen up after you have trained your tenants to be lax.  I would use month to month rental agreements because I don't want to have to live with someone I cannot stand. 

You will have some wins and losses whatever you do, but with proper planning you will come out with MORE wins than losses.