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

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!

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Attorney answers 4


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

Kathryn Rae McKinley

Kathryn Rae McKinley


You may want to contact your lender to see if it will allow the transfer. In many cases the lender will. It may want to keep you on the hook individually, however, either as a co-borrower or as a guarantor.


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

<a href="">San Diego business lawyer Sergei Tokmakov</a>.


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 attorney of your choice to fully advise you about your legal rights and obligations.


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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