Are my landlords committing fraud?

Question

I have recently uncovered that my landlords are not the owners of the property I rent, as I was led to believe. All of their rental properties (5 in total) are all listed in their daughter's name and the home they live in is not listed under their name either and is listed to a relative living in California. It was not disclosed anywhere in my lease that they are not the legal owners and are agents of the actual owner, they represented themselves as owners. They also demand all tenants pay cash and not check or money order. I am wondering if this is legal, it seems fraudulent to me and I am soon ending my lease with them but would like to be well armed with knowledge when I go speak with them.
The listed owner of the properties is their daughter that i know lives in another city yet her address on the deeds to all rentals is listed as my landlords address where she does not reside. We are attempting to leave our rental with them and I uncovered this. Does it mean anything or nothing at all?

Answer 1

The method of how an owner of rental units manage their rental is of no concern of yours. It is perfectly legal of a owner of rental property to have someone else take care of the mundane things and not be bothered by finding tenants, collecting rent, doing repairs and other things they want nothing to do with. This could be a family ran business, and this is the arrangements they have decided would be most convenient for them in operating their business.



The method of payment is normally accepting credit cards, automatic direct deposit or transfer of funds from the tenants bank account to the landlords bank account. It is also reasonable to have tenants pay in cash. There is no bounced check, trying to get the tenant to make good on these bounced checks and paying the bounced check fee at the landlords bank.



Your discoveries mean little if anything. You are still required to pay your monthly rent.



I am at a lose as to why the ownership of the rental unit would have anything to do with you leaving once your lease or rental contract has been completed.



I hoe this has been of some benefit to you, good luck.



"FIGHT ON"

Answer 2

No it does not mean anything. They are not legally required to disclose their ownership status, they are most likely employed by the relatives as property management for those relatives.



As for not paying in check or money order, Most places don't accept those anyway because it's to a guaranteed payment, and nothing sucks more then rent owed bouncing. Any landlord I've ever had has requested cash or email transfers (which are bound by strict clauses in the lease)



I'm not sure how you came across this info, But it's not any of your business and you're ruining your reputation for other landlords

Answer 3

The lease should state who is the legal owner of the property, your lease agreement is between you and the owner. It would not be a valid contract if the owner's name did not appear on the contract and this should be disclosed if this is the case.



For example I could rent a house then sublease to someone else, but I'm sure somewhere it would have to show I am subleasing and not the owner.



Do you receive a receipt when you pay the rent, if not you have no proof you paid the rent, not good for you.



Finally in most states unless your the owner of the property you have to be licensed to manage the property on the behalf of others.



Read your lease carefully before doing any thing.

Answer 4

the contracts are not binding unless the daughter has an agreement for them to collect rents

it could be all legitimate, if the daughter wants these people to be her managers for her property

however,

the daughter could be evading income tax reporting if she is not reporting the rents

the relatives renting the property could be pocketing some of the rent and sending some to the true owner

paying in cash is a sign that someone is not reporting the income, could be a drug purchased property

this could go to a report to the IRS and estimate the value of the rents not being reported, this is how the IRS learns of the cheaters

Answer 5

Nothing you state is fraudulent. It is perfectly legal to have a relative act as your agent and be the landlord of your properties. This should have no effect on your rental agreement at all.

Answer 6

It's legal to not be their properties. Owners often hire someone to be the manager or landlord. But it sounds like they aren't reporting the income at tax time, if they're demanding cash.

Answer 7

it's illegal I hope you at least get a recite for the rent you pay, Laws are at the dept of consumer affairs I would check the recorders office for the name and address of the actual owner there are many of these types of rip offs not saying it is but better safe than sorry...if they are not paying taxes on the renta income the IRS could deposes you in 24 hours

Answer 8

No, they are not. They don't have to disclose that they don't own it. They can require any form of payment they like. If you do not like how they operate, move when your lease is up.



It means nothing at all to your attempts to break your lease.

Answer 9

It could be they are committing fraud but nothing you list here would prove it. If you are about to leave then I guess it doesn't matter..



Many families have their finances convoluted and confused. That may not be a good thing and may cause problems but it does not mean they are committing fraud.

Answer 10

There is an apt renters association in your area. Find out from them.

Answer 11

Sounds fishy to me, Be careful because the property could be foreclosed on you will be without a home.

Answer 12

they can be agents but not demand cash