Many lawsuits involving an issue with the lease or contract signed by this Operating Company would have to list that entity as a party to the law suit rather than the owner of the property.

Hey everyone, I’m looking to see if anyone has experience converting a large detached garage to an ADU Dwelling (in-law suite, granny suite, etc.)

To turn it into a mother-in-law suite you have to pull permits to install plumbing and other services.

How do I set up in a lease, to protect myself (landlord) from tenant putting together a lawsuit against me for property damage during unforeseen circumstance like fires or earthquakes etc. when they didn’t purchase rental insurance?

It’s very likely they’ll be no lawsuit.

That’s a lawsuit waiting to happen. 

After talking with my agent and she did a little digging, the owners on in 2 law suites just on this one property.  1 is with a injury case from a former tenant that has been going on awhile and the other is one of the partners is suing the other partners on. 

Sooner or later some of these deals are going to start blowing up, and when that happens a lot of lawsuits are likely to follow, as well as complaints lodged with the regulatory authorities.

I would establish all payments and rent collection through the Traditional LLC, and if there ever is a law suit you can dissolve it and start a new one.I would house each property into a Land Trust which I would be the Trustee, and the LLC would be the Beneficiary.

Finally, the relationship you keep with your property manager will define your ultimate success...my clients all know that if they have a catastrophic loss, a lawsuit, or most recently a lead paint exposure report from the local health department we will work together to resolve the issue professionally and ethically.