Using an LLC for Rental Property

[Carman Callahan]

Hello. I'm closing on my first rental property next week. I created an LLC but my lender will not allow me to get a mortgage OR title the property under the LLC. Since the property will be in my name can I use the LLC to run the property (i.e. use the LLC for the lease with the tenant, name bank account under the LLC, etc) or should I just not use the LLC for this property and keep everything, including the tenant management, under my name?

[Peter Giardini]

Carman,
Congratulations on your first deal.  Your lender is not allowing placing the lone in an LLC's name is most likely because the loan is a conventional loan being underwritten using Fannie Mae guidelines.
From an asset protection point of view you and your other assets could be exposed if you are sued.  Having the property titled in an LLC offers protection. 
Given that your loan is what it is... your thought of managing the property through your property management LLC is right on!  I find it best to get started managing your business as a business from the start and in this case it might be less confusing.

Best of Luck!
Pete