But if your neighbor does not have a business license and insurance, you may be open  to more liability for injuries or damages caused by his performance, either to tenant or tenant's guests, or if neighbor injures himself while working on your property.       

If someone were injured or killed, I can see liability arising from that.When you sell, if your Realtor knows that there was unpermitted work he must disclose. 

Thirdly, if you personally injure somebody, in the way that people such as a stylist carries insurance against forms of malpractice, then your LLC will not help you.The truth is, LLC will not help you in most situations a STR can cause you problems. 

A lawyer friend of mine told me this could be all sorts of problematic if they ever got injured.

I was badly injured at work and living on my mother-in-law's couch.

If someone gets injured on one of your properties and sues you, you could risk losing all of those properties, plus your own personal assets.Many people suggest that you should have a different LLC for each rental property.  

That lawsuit is a claim for fraud, and that’s what fraud typically is...a misunderstanding and someone being “injured” and wanting to hold the other responsible for it.

You have been injured.

@Tim BradleyThis is a great story....since no one was injured.

Now they don't want the arborist to continue cutting, even though I told them the trees could fall and injured even kill someone.