Renting Single family home to run Assisted Living Facility

[Greg Caputo]

I have rented my single family home for the last 4 years  to a tenant who runs a residential assisted living facility from that home. They run the facility for a limited number of clients. 5 bedrooms so they can have only 5 people being cared for. Things have been great in the last 4 years so far with rent on time, minimal requests from the tenant, house being kept in top condition all the time etc. These facilities are run under state supervision with frequent visits from health department, some sort of a nurse, helpers always available etc. 

My rental agreement is between me and the tenant who owns this business. Looking for suggestions to minimize my risk incase someone sue the facility and in turn coming after the house owner/me.

At this point, other than the typical home insurance, I have taken a umbrella insurance for $2M on this property. Thought of going with LLC route (as in changing the ownership of this house from me to a LLC owned by me). My understanding is that there can be problems with the lender calling in the mortgage where I will have to pay the mortgage balance. I called my bank and they confirmed this.

Looking for suggestions and comments. Thanks!!!