Can I insist tenants send payments to new LLC?

[blksheep]

What is the name of your state? Ohio

I have been doing property management on the side for a few years now. I just recently created an LLC. Can I insist that the tenants now send all rent payments to the LLC? Same address but different name they are written out to? I have some tenants that are real PITA and try to push my buttons. I foresee them refusing to write their checks out to the LCC and insist on writing them to the name listed in their lease (mine of course). After sending them a certified letter notifying them of the change can I refuse any payments not written out to the LLC?

 

[Zigner]

Why can't you simply endorse the back and then have the LLC endorse and deposit it?

 

[blksheep]

I can and will do that if I must - but that does not answer my question. I am not looking for alternatives - I am pretty aware of what they are. But thanks anyway.

 

[Zigner]

I can and will do that if I must - but that does not answer my question. I am not looking for alternatives - I am pretty aware of what they are. But thanks anyway.

Yes, you can insist that they pay to the LLC...
But, I think you're making a mountain out of a molehill.


ETA: If you attempt to evict based on them sending YOU the check instead of the LLC, you will get slapped hard in court.

 

[mommyof4]

It seems the tenants aren't the only PITA in this situation.

 

[blksheep]

Sometimes you guys are not very nice. Assuming things about people's motives and then judging them with those assumptions can be a slippery slope. I have a very straightforward question. But for those of you that want to tell me that I am being a PITA let me explain my motives to you.

Currently my tenants write a check directly to me. This past year I have had to start traveling overseas. Some of my tenants refused to write out their rent checks to my husband. They were just being jerks. They all know him and he has done work on their units. They call him without hesitancy when an issue crops up. I created the LCC with me and my husband as equal members and singing control. I anticipate additional travel on my part and would like to dismiss the potential issue of delaying depositing of the rent checks.

Hence my question. I am not trying to be a PITA but make it easier for the non-PITA tenants and my family.

 

[Zigner]

OMG, you created an LLC instead of ordering an endorsement stamp?

Apparently, you AREN'T aware of all the alternatives.

 

[blksheep]

Again Zinger - your assumptions astound me. There were multiple reasons to create the LLC. I did not create it only for the endorsement issue. Why are you acting like this? I have been very respectful and had what I thought was a simple question. Have I offended you in some way? If I have I assure you that I never had intentions to do so. Have a nice day.

 

[tranquility]

You can, but you *must* make a written notice of assignment first. (If your lease allows.) Then, the LLC has the right to collect. If you have to do an unlawful detainer, you will have a bit of difficulty proving things up in court, but it is possible. Unless you place the building in the LLC, you will have little benefit beyond the ability to cash the check and will have additional costs both in compliance and fees. As Zinger said, go to Staples, get an endorsement stamp made for less than $20 and solve the problem with no more hassle.

 

[Zigner]

Again Zinger - your assumptions astound me. There were multiple reasons to create the LLC. I did not create it only for the endorsement issue. Why are you acting like this? I have been very respectful and had what I thought was a simple question. Have I offended you in some way? If I have I assure you that I never had intentions to do so. Have a nice day.

All of my prior answers are correct. Your concern is the potential for delaying depositing the rent checks. An endorsement stamp costs under $20 and would make the issue moot. I tend to think that you have some ulterior motive (such as getting rid of tenants that you consider to be "problem" tenants). As I said, if you try to evict based on this wacky excuse, you will get slapped hard in court.

Just to make sure you remember what you said:

But for those of you that want to tell me that I am being a PITA let me explain my motives to you.

Currently my tenants write a check directly to me. This past year I have had to start traveling overseas. Some of my tenants refused to write out their rent checks to my husband. They were just being jerks. They all know him and he has done work on their units. They call him without hesitancy when an issue crops up. I created the LCC with me and my husband as equal members and singing control. I anticipate additional travel on my part and would like to dismiss the potential issue of delaying depositing of the rent checks.

 

[tranquility]

I just read the complaint post against Zinger. Ah..OK, fine. To the question you asked, yes, you can assign the rights under contract (lease) unless there is a clause in the lease preventing it.

I'd be willing to bet it will cause more problems than it's worth and won't be the most cost effective or best way to handle things, but you seem to want to keep the true motivations secret, so...I'm done.

 

[LindaP777]

Again Zinger - your assumptions astound me.

Yeah, Zig! Quit giving correct answers and give her the one she wants to hear! Sheeze!

 

[Zigner]

Yeah, Zig! Quit giving correct answers and give her the one she wants to hear! Sheeze!

No matter how hard I try, I always revert to my evil ways

 

[seniorjudge]

No matter how hard I try, I always revert to my evil ways

Are you trying to get a spanking again?

 

[Alaska landlord]

What is the name of your state? Ohio

I have been doing property management on the side for a few years now. I just recently created an LLC. Can I insist that the tenants now send all rent payments to the LLC? Same address but different name they are written out to? I have some tenants that are real PITA and try to push my buttons. I foresee them refusing to write their checks out to the LCC and insist on writing them to the name listed in their lease (mine of course). After sending them a certified letter notifying them of the change can I refuse any payments not written out to the LLC?

Congratulations on starting an LLC. This was a great move on your part.
Your tenants will probably need training so notify them of the change and reinforce by reminding them again a week before checks are due that checks are to be addressed to the LLC and not you. Make sure that all correspondence to your tenants have the LLC name at the heading and have your tenants call you if they have any questions. Pay a visit to anyone that still addresses their check to you and nicely explain to them again how the checks are to be written and that future checks will be returned and a late fee attached. Tell them it’s a legal tax matter and it’s out of your hands. Once they know you mean business they will comply.