First House Hack

[David Innocenti]

I own a single family home in the western suburbs of Chicago which is my primary residence.  The home has a one bedroom 700+ sq. ft. in-law apartment in the basement which I've just remodeled.  I have a tenant wanting to move in June 1st.  I'm trying to decide how to handle the lease.  I started an S corp for the purpose of investing in rentals but because the home is in my name not the business I'm not sure how to handle all the paperwork.  I though about using the business as a property manager.  Does anyone have suggestions what would be the best way to setup this transaction?

Thanks...

[Jaron Walling]

@David Innocenti If this is your only rental unit you DO NOT need an LLC or S-Corp. It's a waste of time and money. If you already owned 25 rentals that's a different story.

You found and screened a new tenant but don't have a lease? The lease is arguably the most important aspect of owning and managing rentals. Do not place a tenant without a good lease reviewed by a few people. Hit the search tab in the BP forums and find quality lease clauses. At minimum grab a basic lease for your state from an online website. It's a ADU in a primary residence. I think you're over thinking it a bit.