As a landlord, whether as an individual property owner or licensed property manager who has many properties, you may choose to run your property management business under a fictitious business name. However, if you choose to do so, make sure it is properly registered, and remember to pay the fees to maintain it. Failure to do so could cause you serious problems with any business agreements you make.
Who Must File a Fictitious Business Name Statement?
In California, anyone who transacts business for profit under a fictitious business name must file a fictitious business name statement in the county in which the business has its principal place of operations. In the case of individuals, a fictitious business name is any name that does not include the businessperson’s surname or a name that suggests the existence of additional owners.
You Cannot Enforce Business Agreements Made When a Fictitious Business Statement is Not Properly Filed
A businessperson who fails to file and/or maintain a fictitious business name statement when required to do so may not sue on any contract or agreement made under the fictitious business name per Business and Professions Code § 17918. For landlords, non-compliance with the fictitious business name requirements will prevent you from enforcing any rental agreements made under the fictitious name or allow you to maintain an unlawful detainer action in the business’s name should you need to perform an eviction.
If you do choose to conduct business under a fictitious name, remember to file your fictitious name statement and to keep your statement current to prevent problems running your business.
