Can an LLC help clean my personal liability from my rental property without transferring this property's title under the LLC?

Asked over 2 years ago - Redmond, WA

I bought a real estate property for rental. To avoid personal liability, I setup an LLC, hoping it can clean my personal liability potentially occuring in my rental business. Unfortunately, the loan has a condition that this property's cannot be transferred to an LLC before the loan is paid off.

If I compose the lease to use the LLC (instead of my personal name) as the landlord and my tenants sign the lease, will it be good enough to clean my personal liability from this property's rental business? Appreciate any help!

Attorney answers (4)

  1. Irving A Sonkin

    Contributor Level 12

    5

    Lawyers agree

    1

    Answered . You might want to try making a master lease from yourself to the LLC. Then the LLC will have the right to lease the property to tenants. This will reduce, but not eliminate potential personal liability. Make sure that you have sufficient insurance to protect you against risks

    The advice given is general for information purposes only and should not be relied on. You should consult with an... more
  2. David M von Beck

    Contributor Level 10

    3

    Lawyers agree

    Answered . Without actually transferring ownership of the property to the LLC, it is unlikely you can avoid personal liability as a landlord in this context.

  3. Sergei Tokmakov

    Contributor Level 7

    2

    Lawyers agree

    Answered . Maybe you can rent the property to your LLC for a reasonable price.
    Purchasing a liability insurance is another way to limit personal liability.


    http://thecorporateattorneys.com

    <a href="http://thecorporateattorneys.com/">San Diego business lawyer Sergei Tokmakov</a>.
  4. Adam Morrow

    Pro

    Contributor Level 11

    Answered . I would need some more information - your LLC designation may help, but not necessarily if someone names you personally in addition to your LLC in a suit.

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