An LLC does not give you any tax advantages, more liability protection than anything, however, in a loan scenario, you are not on title and therefore do not have any liability exposure to my knowledge.

It's not a complicated process and the entire contract can be put together for around $1,000 or less.More importantly, make sure you are protected.

I must protect myself an my business."

That changed after I had a tenant, after the tragic death of his live in girlfriend, suffered a bout of depression so severe that when I visited him, not only was the lawn not mowed for over six months, but looks like he didn't have a haircut, shave, or bath for that long.

We have a 12 page management contract that we've added our real experiences to over the years, with the intent of protecting both us AND the landlord.

@Eli Benali please check with an attorney, but why are you taking it out of a protected environment and placing it into your names? 

Most leases will contain something like this:If Lessee fails to pay Rent, or otherwise Defaults under this Lease, Lessor may use, apply or retain all or any portion of said Security Deposit for the payment of any amount due Lessor or to reimburse or compensate Lessor for any liability, expense, loss or damage which Lessor may suffer or incur by reason thereof.I would not expect to give it back in this case, because essentially they have broken the agreement, but again it depends on the language of the lease you've had them signed whether they are "entitled" to it or not.

@Mason Blake if the insurance lapses, the mortgage company will put on insurance that protects their investment but doesn't protect you from liability.

What, if anything, can I do to protect myself from the nightmarish scenarios I hear about landlording in California?

.), then the tenant should have protection under their own renters policy to rent a hotel.