Collecting Rent in a different name

[Robert Palladino]

Hello All,

I have a rental property in Philadelphia that is owned in my own name. I formed an LLC for this house prior to purchasing the property, which I later decided not to use because I figured lending would be easier without having to go through commercial lenders when I go to refinance later.

My Question:

Can I collect rent using the LLC even though the property is not owned by the LLC? I assume it's no different than a property manager collecting rent for me.

Do you see any potential legal or tax issues with operating this way?

Thanks in advance,

Rob

[Kevin M.]

@Robert Palladino technically speaking, if your LLC is operating as a property manager, its engaging in a licensed real estate activity in Pennsylvania and would need to be licensed by the Real Estate Commission. You, as an individual, are allowed to act as a property manager for real estate in your name, but once you involve the LLC as the collecting entity it would need to be licensed.

I would just use your regular name. Set up a PO Box or virtual mailbox for all rent and correspondence so tenants don't have your address. Use Google Voice for phone number. You can be decently "anonymous" to tenants even using your name.