All Forum Posts by: Tom Gunnison

I've heard of the same and have used 6mo leases to comply with HOA rules where necessary. Definitely violates the spirit of the law but has worked ok for me so far :)

@Luke Miller Right. Which means that as long as you don't have run into any complaints you'll be just fine. Risky though for sure. 

I think if you're buying with the intent of renting short-term you need to make sure the #'s still work if you have to go long term. All mine cash flow wonderfully right now but will also be just fine if I need to drop the short-term model. I imagine this is the case for most folks. 

Seems that way based on the Neighborhood committee's most recent hearing. Not sure Denver will be able to enforce that sort of ordinance but it certainly seems like they're going down that road. Extremely lame rule in my very humble opinion. They ought to regulate and tax short term rentals at the city level instead of eliminating them altogether. Would be fairly simple to set up the framework. 

I'm looking for a contractor in/around Colorado Springs who specializes in foundation repair. Single family rehab project in the downtown corridor. 

Any recommendations would be greatly appreciated. 

Thanks,
Tom

I've done a couple portfolio loans on non-warrantable condos with First Bank. Castle and Cook might also be a good bet.

Good luck.

@Paul Choate

I agree. I'm not arguing that there's no difference between operating individually v. operating under a corporate umbrella. 

I do, however, see quite often on this site folks assuming that operating under a corporate umbrella is an absolute shield against all liability. I just thought I'd throw my 2 cents on this thread in order to try and dispel that misconception. 

It has been my experience as a practicing attorney (I practiced for 2 years so I'm the authority on absolutely nothing) that most suits brought by tenants against landlords raise a negligence claim which exposes the individual/land lord to personal liability no matter how they hold title to their asset(s). It has also been my experience that most landlords are surprised to learn that they may potentially be liable personally if the plaintiff's theory wins the day. 

That's all I'm saying.

@Paul Choate 

LLC members or managers are liable for their own fraudulent or tortious acts even if the acts are committed (or not committed) in the service of the LLC. Individuals can always be held personally liable for negligent, fraudulent or illegal acts or omissions. Merely operating under the umbrella of an LLC does not change this rule.

So, to use the "slip and fall" hypothetical from above -- If you own and manage a piece of property in an LLC and your tenant slips and falls on a sheet of ice and alleges that you were negligent in your performance of your landlord duties, you and all of your assets are at risk.

Stated another way, if you manage your own properties, you will not gain any liability protection by owning the asset and performing the property management under an LLC. A tenant who is injured by your negligence will sue you personally - your LLC will not protect you.

Don't take my word for it.

There seems to be a massive misunderstanding re: an LLC's (or any other corporate entity) ability to insulate an individual from personal tort liability.

In sum:

Conducting your personal business through an LLC provides no protection against tort liability (e.g., negligence) -- which, in my estimation, accounts for 99% of all tenant or invitee v. landlord disputes. The use of corporate forms — like LLCs, S-Corporations, or Incorporation — has many important purposes, but avoiding personal tort liability for your own conduct is not one of them.

You could get a non-refundable option fee (apply to purchase price?), charge premium rent and apply a small % to the purchase price when their option is up. Make the purchase price negotiable in a year or whenever so you're not locked in at a potentially below-market price. You can draft very owner/seller friendly language as well. 

Your renters would have every reason in the world to take great care of your property and play by your rules.

Ryan,

I'm born/raised in Kansas City. Happy to put you in touch with my network there. PM me when you have a moment.

Tom