Do I need to start a business to rent my house out?

[Matt Z]

Hello,

I am in a similar situation as most Americans where my house is worth less then what I paid for it. I decided to make a leap of faith and purchase a new home which means I have to rent out my current home. It is very exciting but also makes me very nervous. This site has given me a wealth of knowledge in how to rent my house out and pre-screen candidates. But I am curious as to if I should set up my own business. I'm hoping to protect my assets and provide a tax break. Does anyone gone through this or have any advice? Any suggestions are very greatly appreciated.

Thanks,
Matt

[Brian Burke]

Matt,

You do not need to set up a business or form an entity. As a landlord, you will get all of the tax benefits of rental property ownership. To protect your assets, buy a landlord's insurance policy and an umbrella policy.

Good luck!