You want to "control everything, own nothing" so as to be as unattractive a lawsuit target as possible.You want to assure that a lawsuit from one property will not endanger others, or at least not a "large" portfolio of smaller properties.You want to emplace a layer of protection between your entity structure and yourself personally, as well.

My passion for real estate dates back to 2004 when I bought my first home 4/2 mother in law suite, with swimming pool in Pensacola, FL. 

I'd rather stay away from lawsuits and arguments and keep things moving.

Then I'd be glad to have him gone and focus on the next tenant...If he really damaged the place (and you know from my application he has some financial means), then you may want to have a landlord tenant lawyer or general practitioner look at the exact next steps for the eviction or civil lawsuit.

The lawsuit, which alleged that the turf state laws harmed consumers by preventing access to the national market for commercial real estate brokerage and depressing real estate prices, was filed by a group of consumers, real estate brokers with Marcus & Millichap Real Estate Investment Services, a national commercial real estate services firm based in Encino, Calif. leading the suit.

-The additions put on the property (in-law suite and garage apartment) were not permitted or inspected.

If the lawsuit was based on condition of the property, they will certainly go after the property manager.

My understanding of the MA laws is:1. last month can be mingled in your accounts, but the 5% interest has to be given2. sec dep can not be mingled in your accounts and the 5% or has to be given.So, instead of trying to figure this out every year (and you have to calculate correctly), I find it easier to open each separate account, then every year have the bank update the account and subtract the original amount and .....the rest goes back to the tenant.This also (in my mind) a much better way to prove to the courts that you gave the right amount and did return it.Note:  another rule is that you are suppose to have the accounts protected from your assets so that no lawsuit can take it. 

This is what makes law suits!

But these expenses are 100% necessary compared to a lawsuit that would subject my other 10 properties from any negligence from the 1 that may have an issue.