Do YOU hold rentals in an LLC or your personal name?

[Ryan Daniels]

Has this topic been beat to death?

Do those of you who are renting out homes/apts/mutli-fam structure your investments to be owned by you personally, or by an LLC which you own?

I earn a pretty decent living outside of Real Estate (where I currently earn nothing). Having a somewhat sizable income, I have accumulated a fair amount of assets in the form of cash, stocks, bonds, and other physical assets. I think sometimes that this may present a target to renters who occupy the types of units that I am investing in. As such, I have major reservations about owning the properties in my name, in the event that a tenant slips and falls, or brings suit for some other problem.

I will be utilizing a property mgmt company for any rental properties that I buy, wherever I buy them. I don't actually want to meet the tenants at all, beyond reviewing their screening process. I will not be the one interfacing with the renters at any point... I already have a full time job.

So, do you use an LLC or some other corporate structure? Why or why not?

FWIW- i already own an LLC for my main working gig, so I'm familiar with that it takes to create and maintain one.

[Scott M.]

Yes, beaten to death. Bottom line is there is no one size fits all. Those that hate LLC's and those that love em. For some reason those that hate LLCs always say "make sure you have adequate insurance". As if having an LLC negates the need to have adequate insurance. It isn't an either or discussion. You need adequate insurance no matter what route you go to hold title.

Everything we own is in LLC's and about 90% of our client base is the same way. 10% in their personal name.