All Forum Posts by: Dzenan Catic

@Kyle J. @Sudhanshu Singha

That’s kind of what I was wondering in regards to what utilities follow the tenant and what stay with the property. I am from Michigan so I’m not sure if each state has separate laws for that, but which utilities stay with the property ? The last thing I want is to have an encumbrance on the property when I go to sell it later down the road. 

Hello, 

I am renting out my first property. It is a single family home. How do I go about utilities? Do you have the tenant put the water, gas, electricity, trash in their name and show you proof that they are paying them every month? or do you put the utilities in your name (or in the name of the llc) and just send the bill to the tenant to make sure it gets paid that way?

Curious if anyone ever had any troubles with tenants not paying utilities and how you went about that?

Thanks for your help!

@Clint Coons

I appreciate the advice! I will find that out as well. 

@Clint Coons

This is the response I got from the banks title team. Does this mean that I would be okay? I asked if the quit claim deed would cause my title policy to be void: 

"No. If the owner quitclaims the property into an LLC that is wholly-owned by the owner then the title policy continues
in full force and a Form 107.9 endorsement is not required.
If, however, the owner quitclaims the property into an LLC that is not wholly-owned by the owner, then a Form 107.9 endorsement would be required to name an additional insured. NOTE: A similar result will occur when dealing with a corporation. If the stock, shares, memberships, or other equity interests are wholly owned by the owner of the property
then the title policy continues in full force and a Form 107.9 endorsement is not required. If, however, the owner quitclaims the property into a corporation where its stock, shares, memberships, or other equity interests are not wholly-owned by the owner, then a Form 107.9 endorsement would be required to name an additional insured.”

@Clint Coons

Thank you for that info. I really appreciate it! I will look into that with my lender. They told me to just do it through a quit claim deed, but I will ask about the other options and make sure that the title policy doesn't get void. Is there anything else I should look out for ? 

@Matthew McNeil 

I am referring to buying the property in my name and then transferring it into an LLC via quit claim.

According to legal zoom:

"For owners of rental or investment real estate, it’s common to form a limited liability company and transfer title to the property from the individual owner to the LLC.

Transferring property to an LLC can limit your personal liability if someone is injured on the property and files a lawsuit against the property owner. People who own multiple rental properties sometimes form a series of LLCs to insulate each piece of property from liability claims involving other properties."

I was talking more so for the protection of your personal property in case someone tries to sue the llc. You are correct on the mortgage still being in my name even if its transferred into an LLC after purchasing. When you buy property with an LLC from the start, aren't you still liable to make the mortgage payments by being the guarantor on the loan anyway?

@Nick W. Graham thanks for the reply. I will check it out!

Hi guys,

When you put your property in an llc , do you make sure that everything is in the Llc’s name (Insurance, mortgage, all the lease and rental paperworw, etc.) ?

Also, when you have multiple properties, how would you go about setting that up? A book I read suggested that you should have every property have its own llc and bank account. Seems pretty tedious and tough to keep track of when you have 10 or so different properties. Can you have them all in separate Llc’s but have a group llc that owns those Llc’s and then all of your leases and expenses go through that group. 

For example:

Property1:123 main st Llc

Property 2: 456 main st llc

You form “main st capital” . Main st capital owns both llcs and then all of your lease agreements say “main st capital” on them and your rent collection all goes through main st capital as well as expenses and everything else. You pay your mortgage through main st capital for all Properties and such. Does this still protect you from piercing the corporate veil?