I’m almost through Leigh Robinson’s “Landlording” and she recommends establishing a fictitious name and using it on your checking account for rentals because “it will help keep track of what’s a rental expense”. This didn’t really make sense to me–is it worth creating the fictitious name?
Regardless of what name you use, you should establish a separate bank account for your rentals. That alone will help contain your business related transactions to your business account. Whether you go the LLC route or just file DBA is a whole other animal.
thanks–I totally understand the need for a separate account, I just didnt’ understand her reasons for the fictitious name.
On a similar note, do you use a P.O. Box (if that’s even allowed?) for your address on the rental checking account so that your tenants can’t find out where you live if you need to write them a check to return their sec. deposit or some other monies? Or do you just get a money order? Thanks.
Yes, you can use a PO Box for your account address. We also have our rent checks sent to our PO Box. The PO Box is on our lease too. We also use a PO Box for our regular mail too. I’ll do anything I can to avoid having my address posted on a simple internet search.
Our residents have our cell numbers, but that’s it.
thanks again, Justin–although I guess if they were really determined to find out where you live they could probably do it somehow, but why make it easy for them?
Yeah, that’s the point. If someone is determined enough, they’ll find out. Same principle behind car/home alarm systems and things like that. If someone wants something bad enough, they’re going to get it. You just make things enough of a nuisance that it hopefully deters them from doing it.
Sounds illegal I wouldn’t even advice it.
OK. Now explain to me what is illegal about setting up a PO Box in your LEGALLY REGISTERED BUSINESS NAME to receive mail to…
If you’re referring to a “fictitious name” ok, but if you’re saying the PO Box for use as I described is illegal, I want to hear your reasoning.
I was referring to the fictitious name no nothing illegal about using a PO Box lol.
I actually don’t want to do the fictitious name anymore (I don’t see how it would help me). I just want to use my real name + a P.O. Box address for my rentals.
It’s a matter of personal preference. Some people (including me) like the anonymity using a business name provides. Other people may think it makes their operation sound more professional than just using your personal name.
I like the fact that our business isn’t constrained by the new 4 loan guidelines for Fannie and Freddie too.
Only reason I would use a fictitious name is if I planned on being a crook. Most tenants are happy with me because I treat them fair.