PO Box for LLC address.

[brockovich]

I don't hide from my tenants and haven't for ten years. I have never had an issue and I sometimes instruct them to bring the money directly to me with penalty if they are late. I suppose it could haunt me someday but I typically try to stay friendly with tenants and maintain a good relationship. I have only had three evictions in 10 years so I guess using my home address for my LLC hasn't hurt me.

[justin0419]

j1dias,
If you are conducting business in your business name, then official documents will come addressed to your business name.  So you need to inform not only your broker, but also the post office of that.  You need to make sure your broker is cool with the idea of you doing things on the side and having his business office address associated with it. 

[j1dias]

I don't hide from my tenants and haven't for ten years. I have never had an issue and I sometimes instruct them to bring the money directly to me with penalty if they are late. I suppose it could haunt me someday but I typically try to stay friendly with tenants and maintain a good relationship. I have only had three evictions in 10 years so I guess using my home address for my LLC hasn't hurt me.

Brockovich - thank you for your insight. I don't think the idea is to hide from my tenants. For one, I am planning to manage the properties myself (actually, my wife will do the property management and I will do some - not all - of the maintenance). So we will not hide from them. But I do want some level of privacy.

And based on my limited understanding 3 evictions in 10 years is very good. Congratulations! You must be doing things right. However I am not sure if I will be able to do the same. For one, I am planning to start with low income rentals and then move to mid to high-income. And I believe that number of evictions increases as you have more low-income rentals... What are your thoughts on that?

And one last thought - low number of evictions may be a result of very low rent. Would you agree with this? Please, understand that I am not saying you have low rents. By sharing my thoughts and soliciting feedback/insight I learn and become a better investor... :O)

Justin - Thank you for the comment. From my broker's perspective this is not "on the side". This is my main activity in real estate. He knows that the only reason I got my license was because I wanted to do it for myself. And the only reason I signed up with him was because he is also an investor and he said that he could help me start my business. I am still going to share this idea with him to get his perspective.

Thank you all - have a great weekend!

[brockovich]

My rentals rent beteen $450-$575 per unit. I am in Ohio. I concentrate on 3 and 4 unit buildings mostly. I would agree that to a degree low rents could result in less evictions. I am typically at or just below market but offer more amenities. My tenants know they get a lot of value for the money, especially after they are there a few months and experience problems. This keep them happy and keeps them paying.It is not uncommon for them to tell me I am the best landlord they have ever had because I handle repairs immediately and take good care of the yards. I have some tenants who have been with me since 2000-2001. My vacancy rate is less than 3% on an annual basis so yes I would rather keep my rents competitive, with low evictions and low vacancy rates as I realize the gains by keeping my rentals fully rented to capacity. They have my cell phone number and I have their work number, cell phone number etc... This keeps the relationship open and more cordial and if there is a problem(repairs, late rent) etc... we can get in touch woth each other to resolve the issue. Lastly, my tenants pay all utilities and I allow pets(with extra fees of course) they give me a competitive edge also becasue many ppeople own pets. Some on here will swear not to take pets but again I have only had 1 real problem in ten years with excessive damage caused by a pet. Since I average more than $250 of extra income per for pet fees this easily offsets those rare instances when I have a problem. Hope this helps.

[BLL]

There are 4 address for a business.

The address where legal service may be delivered. This must be an address where someone can accept legal service. It doesn't have to be where you conduct business or store records. You can use your attorney's address or a friend or family member's. The only requirement is that a person of legal age can sign. This address must be disclosed in filings with the state and I prefer to use an attorney's office since the first thing you do when you get served is call him. If he accepts service, he has time to review it and can tell you immediately if the claim is valid. Otherwise, you wait for him to call you back after you send him the paperwork and worry.

The second address is the mailing address. This can be a PO Box, UPS store, or any other address the USPS accepts. It doesn't need to be the place where you actually conduct business. However, this address must be disclosed in filings with the state since that is where documents will be sent. I think a UPS store or private mailbox company is the best option.

The third address is where you store business records. This must be a real address where records are stored, not a PO Box. Some states, not all, require this address to be disclosed in filings. It does not have to be the address where you actually conduct business unless you store records in the same place.

The last address is your place of business. This is the location where you actually conduct business. It is not a PO box, etc. and it may or may not be the address where you keep business records as some people keep their records with an accountant or bookkeeper. Depending on your state, you may or may not be required to disclose it.


Government documents will come in the name of the company. Legal service will probably name the company first and anyone else involved in the transactions. Attorneys tend to sue everyone even if they have a minimal involvement. Expect to get sued personally every time your business gets sued. That doesn't mean you will lose or are responsible, but it does mean you have to pay to defend yourself.

[j1dias]

Brokovich - thank you so much for sharing your experience. And I am glad to see that you have been successful in establishing a cordial relationship with your tenants. I believe in treating everybody with respect. And this seems to be working for you.

BLL - Thank you for the explanation. Arizona does require you to provide:

"known place of business in Arizona" and "Name and street address of statutory agent in Arizona".

As a real estate agent working for my broker, I can use the broker's office address as my address (this is one of the reasons why you pay a monthly fee to him). I will be the statutory agent for the LLC. So I am planning to use the broker's office address in the Articles of Organization. I will talk with him during the week to confirm that he is fine with this. But I can't imagine any reason why he would have a problem with this.

Thank you again and have a nice weekend!