A bit nervous about renting out second home for the first time

[Scott H.]

Earlier this year, we bought a second home that we will be renting out for the first time in January. Unfortunately, we had to take out a mortgage on the small property, not under an LLC. I have read nothing but people saying that to rent out your place, you should be an LLC to protect yourself. Well, that will not happen before January. Now what? How can I protect myself until we can place this home into anLLC? I know, load up on liability insurance. How much? Any other suggestions? Am I worrying too much?

[Andrew Michael]

It sounds like you are on the right track already but I would get some sort of umbrella policy and require the tenants to purchase renters ins.  BUT in my opinion the biggest hedge against tenant issues and potential litigation is filling your unit with high credit score renters.  I find that tenants with credit over 680 require much less time and rarely take issue with anything.  I would guess those more likely to sue over something would be the lower tier tenants. 

Rest easy my friend, it will be ok.  Just do your due diligence.