Todays question is How To House Hack Without Your Tenants Discovering You’re Their Landlord.
What Is House Hacking?
In case you’ve never heard of this term before, it’s real estate investor slang for living in one of the units of your rental property. Your income from tenants is paying for the mortgage and for your place to live, hence the “hacking.”
How Do I Hide That I Am My Tenants Landlord?
In the words of Drake, If you’re reading this it’s too late for most of you. Deeds are public record. So assuming you bought the property in your own name you’re only one internet search away from an angry tenant finding out who you are.
If you ever have an issue with your tenants then they will look up the true owner. Professional tenants are really good at that. And even if you transfer from your personal name to an entity after purchasing the property, your name will appear as the transferor. So you will still be found out.
For maximum property ownership anonymity, you should purchase your rentals using an entity such as a limited liability company, revocable living trust, or land trust etc. This way, your personal name never appears in a public record.
So, assuming you decide that you want still attempt to hide your ownership in light of the above, here’s how. You can simply create a property management company that leases the property on behalf of the landlord. You yourself can be the property manager.
It’s not illegal. But things may get weird if your tenants discover that you’re their property manager and their landlord.
Assuming you did purchase your property using an entity, then that entity can lease to the tenants and make you it’s property manager. Or you can create a separate property management company to lease on behalf of your entity. Limited Liability Company annual fees are somewhat high in Maryland so don’t go too crazy.
If your next rental property will be located in Maryland or D.C. and you are considering hiding ownership by using some of the strategies in this post such as creating a property management company, do not hesitate to contact us.
P.S. I should also mention that your businesses articles of organization is public record as well. So if you used your name on any public business filings it may be too late for you as well.
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