Quote:
Originally Posted by HardDrive
Why an LLC? Just the added insurance barrier?
We are about to buy a rental house, so do tell......
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I believe the "limited liability" part is to your advantage (EDIT: Cash beat me to it, see above). There are also some tax advantages as well. If structured and maintained properly, an LLC can protect your additional assets outside of the LLC if someone wants to come after you. So, you would want to form one for each rental property, or at least limit the assets in each. It doesn't take much to "pierce the corporate veil" though, so you need to do your homework, and make sure that you set it up properly AND maintain/run it properly.
Regardless, I would make it a requirement (written into the lease) that all tenants must carry renters insurance, with a specified minimum liability coverage if possible.