Rentals in 92555>Question Details

Ariadne Subj…, Home Buyer in Moreno Valley, CA

Paying the rent

Asked by Ariadne Subject, Moreno Valley, CA Fri Jun 15, 2012

I rented a home from an Owner and found out that the house was owned by an LLC(thanks to you guys) now I finally got the contract via email and it says that the check/money order should be made under the daughter's owner's name ...however it does acknowledge that the prop belongs to the LLC...im confused is this ok?

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Perfectly ok. They could ask you to send it to me and as long as it is what the owners want it perfectly fine. Sending it to me would make me happy too.
1 vote Thank Flag Link Fri Jun 15, 2012
Ariadne,

Your rental agreement should clearly outline who you should make your rent checks payable to.

Make sure you get a receipt, and save a copy of your canceled checks. This way you will have proof you paid your rent.

It is not uncommon for the rent checks to be made to a party other than the owner of the property . I rented an apratment once, where the complex was owned by a group of investors,my rent checks were made payable to the property managment company.

No need to worry.

Kawain Payne, Realtor
0 votes Thank Flag Link Thu Jun 28, 2012
Check with a lawyer.

However, it can be OK. The LLC can direct that you make the check to whomever it wishes. For instance, there might be a property management company, and you'd make the check to the manager, not the LLC. So the owner and the check recipient can be two different people or entities.

Follow the directions on the lease. If the lease says to make the check to the daughter, then--according to the terms of the lease--that's the person who receives the check. (Again, confirm with a lawyer.)

The owner and his daughter are also at risk, even if nothing fishy is going on. The reason is that there are certain obligations that an LLC must conform to. Otherwise, it's possible to "pierce the veil" of the LLC--basically meaning that the protections of the LLC vanish. And if the property is owned by the LLC but you're writing a check to someone individually, then the LLC is weakening its position or value as an LLC.

It's also possible that the LLC is trying to engage in some questionable activities--perhaps showing a paper loss for tax purposes when in fact it's making a profit. (Not too much advantage to that, since most LLC profits or losses flow directly to the owners' tax returns. Still . . . ) However, that would be their problem (with taxes and the IRS), not yours. Keep your nose clean. Pay your rent per the terms of the lease. And check with a lawyer for confirmation.

Hope that helps.
0 votes Thank Flag Link Fri Jun 15, 2012
Don Tepper, Real Estate Pro in Fairfax, VA
MVP'08
Contact
It may be okay as long as he really owns the home. I had a borrower show up at a closing with a woman claiming to be his wife, they signed everything and then the closing attorney asked for a copy of her driver’s license, BOOM.

Jim Simms
NMLS # 6395
JSimms@cmcloans.com
Financing Kentucky One Home at a Time
0 votes Thank Flag Link Fri Jun 15, 2012
Thanks the LLC is EASTKINGS LLC ....this is part what part of the contract says: "tenant should pay $1700.00 monthly payable to property manager Eastkings LLC and mail to Angela Quintanilla" however my sister did not make the deal with an Angela she made with a Carlos....idk what to do????
Flag Fri Jun 15, 2012
Tim,
you're going get yurself in deep doodoo.

This situation has RED FLAG written all over it!

beware!
0 votes Thank Flag Link Fri Jun 15, 2012
Thanks the LLC is EASTKINGS LLC ....this is part what part of the contract says: "tenant should pay $1700.00 monthly payable to property manager Eastkings LLC and mail to Angela Quintanilla" however my sister did not make the deal with an Angela she made with a Carlos....idk what to do????
Flag Fri Jun 15, 2012
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