Asset Protection: Setting up a property management company as LLC

[Jacob A.]

I think I came across this idea on BP but cannot find that post. Basically to protect from lawsuits one creates a property management company as an LLC. You rent the property to the LLC and the LLC sublets it to the tenant. The advantages are:

1. Property remains in your name. Helps in getting financing and insurance.

2. If sued, the LLC does not have any assets. Setting the property as an LLC puts at least one property at risk.

3. Avoid having to set up multiple LLC for each property.

4. Avoid having to do any title transfers.

Any disadvantages?