As for the legalities of setting up an LLC to protect you and your partners, I would consult with an attorney for best judgement. 

I have looked for examples of landlords that were protected by their LLC and always come up empty handed.

For most, this isn't a realistic option so they update some of the most important regions themselves and copy the data from other providers where they don't have coverage.This is a big problem with these big consumer-grade real estate analytics platforms—you don't really know the source of that data, its frequency, etc.

Forming an LLC for your rental property can offer liability protection, but no real tax benefit.

An LLC is useful for two things: anonymity and legal protection.

And for sure its a cautionary tale to others and going forward you will know how to protect yourself..

Apparently, local jurisdictions here are saying they want more affordable housing, but in the same sentence will also say that there will be more regulations, more environmental protections, and more hoops to jump through to develop starter homes. 

Sometimes, buying an existing property can be more cost-effective and less time-consuming and maybe require slightly less permits, etc. 

While an LLC can offer liability protection and tax benefits, it’s not essential for a single property—personal liability insurance and an umbrella policy may suffice for now.

Requiring occupant to have renters insurance is another possibility for extra protection.