Can I rent part of my home via an LLC?

[Laura M.]

I have a number of properties that I rent out, and am trying to properly set up an LLC for those. One of our rentals is a detached granny unit in the back yard of our personal residence. We are currently renting it to people who are doing 4 month traveling details for a government entity. This gov't entity actually has actually suggested that we become contractors for them, so that they can pay us directly to retain the property for their traveling employees. Apparently the paperwork is a pain in the rear, but probably worth it to have the place always rented. Of course we need to have a business entity in order to do this. The unit doesn't have its own meters.

 Is there any way we can shift our liability for this rental away from us personally and towards our LLC via some sort of a contract between us and the LLC?  I know I need to consult a lawyer, I’m just wondering if anyone has thoughts about how this situation might be handled.