Rental Property Investor · Fairmont, MN · Member since 2019 · 184 posts · 123 votes
Hello BP, looking for some guidance specifically to Minnesota landlord/tenant statutes.
I have formed an LLC to be used as my property management company to manage the rentals I (well a different LLC that I control) owns.
How should I list the "person authorized to manage the premises" and the address. Can this be my LLC and the address be the address for the LLC (which would be the LLC's registered agent's address)? I'm trying to avoid putting my personal address here, but want to make sure I'm legal and avoid a $200 phone call to my lawyer. Thanks in advance.
According to MN Statutes 504B.181 Landlord or Agent Disclosure.
Subdivision 1.Disclosure to tenant.
There shall be disclosed to the residential tenant either in the rental agreement or otherwise in writing prior to commencement of the tenancy the name and address of:
(1) the person authorized to manage the premises; and
(2) the landlord of the premises or an agent authorized by the landlord to accept service of process and receive and give receipt for notices and demands.
Real Estate Broker · Minneapolis, MN · Member since 2011 · 5k+ posts · 6k+ votes
6y
@Lucas Miles what your going to run into is municipalities who will require a physical address and actual person with contact info in order to get a rental license.
Unless your a licensed RE Broker your still going to be personally liable on the PM of the properties as you must be property owner, w2 employee of the property owner, or licensed RE Broker to do property management in MN. In the first two, the chain of liability still direct connects to the property owner, which must be a designated person (at some point in the chain of things you will hit that requirement of a designated person).
So if your doing split LLC's for liability separation, sorry won't work. If your doing it for tax reasons, then ok but just know a person will have to come into play at some point in the chain of things.
Real Estate Broker · Minneapolis, MN · Member since 2011 · 5k+ posts · 6k+ votes
6y
@Lucas Miles what your going to run into is municipalities who will require a physical address and actual person with contact info in order to get a rental license.
Unless your a licensed RE Broker your still going to be personally liable on the PM of the properties as you must be property owner, w2 employee of the property owner, or licensed RE Broker to do property management in MN. In the first two, the chain of liability still direct connects to the property owner, which must be a designated person (at some point in the chain of things you will hit that requirement of a designated person).
So if your doing split LLC's for liability separation, sorry won't work. If your doing it for tax reasons, then ok but just know a person will have to come into play at some point in the chain of things.
Real Estate Broker · Hugo, MN · Member since 2016 · 688 posts · 596 votes
6y
@Lucas Miles hopefully @Brad Schaeppi will answer here, but I believe as long as your registered agent has a real address and not just a PO Box you should be good. Be sure to post it in tryout lease also to avoid issues later.
Rental Property Investor · Fairmont, MN · Member since 2019 · 184 posts · 123 votes
6y
@James Hamling thanks for this information, I'm less concerned with providing my personal address to municipalities as this information shouldn't easily accessible by anyone. My concerns are from an asset protection standpoint, and to separate the "tenant interaction" face of the business with the passive ownership. I think I'll reach out to my attorney for a final recommendation if this is acceptable or not.
@Amber Gonion thank you, my registered agent does have a real address so should be good there.
@James Hamling thanks for this information, I'm less concerned with providing my personal address to municipalities as this information shouldn't easily accessible by anyone. My concerns are from an asset protection standpoint, and to separate the "tenant interaction" face of the business with the passive ownership. I think I'll reach out to my attorney for a final recommendation if this is acceptable or not.
@Amber Gonion thank you, my registered agent does have a real address so should be good there.
So you won't have actual ownership entity stated on tax records? Because that is all very easily found public record, I know as I go through these weekly. And if it is a business entity it is about 45 sec search on S.S. website for the registered business, with registered addresses and or persons.
Point is there is only 1 way for separation and that is actual separation. In this internet age all it takes it a little tech savvy and most anything R.E. is easily found, only the few using true asset protection methods are actually hidden, and it's much more detailed and technical then just making a different LLC to collect rents.
And your info with government agencies is public record, as those are public services. I have had tenants get owner info from public works before just by asking, even gotten phone numbers, it's annoying but happens.