Mitigating liability risk in California

[Alexander Ho]

Hi,

This is a question I have regarding an income property my partners (3-4 individuals) are looking to acquire. I spoke with a mortgage broker and it is best to purchase as joint tenants with our individual names listed on the title for better mortgage rates. At close of escrow, is it recommended to start a LLC to mitigate any tenant liability risk by associating our individual names on title?

What are some recommendations and steps you would suggest, the last thing we need is a personal injury claim within the property.

Does anything change if you keep the individual names on title but on the lease agreement with potential tenants vis-a-vis a LLC or a property management company?