How to Protect Your Assets as a Landlord
Seeing the successful results of your rental property is much more satisfying when you know that you are legally protected from liability.
If you are currently the landlord of a rental property, you hope that the return on your investment is worth every potential liability. However, these liabilities pose a serious risk. Seeing the successful results of your rental property is much more satisfying when you know that you are legally protected from liability. To learn more about landlord asset protection, read on.
Create an LLC
It’s a good idea to place each of your rental properties into separate LLCs. Creating LLCs with your attorney is a process that can end up saving you a lot of headaches. If there is ever a lawsuit, you don’t want to have to defend all of your personal assets from the plaintiff’s claims. An LLC acts as a buffer between you and your personal assets (except for lead paint liability in Baltimore City). It means that only the assets of the LLC can be legally at risk, as opposed to all of your assets. To stay organized, create a separate checking account for each LLC.
Hire a Property Manager
You lead a busy life. It takes a lot to manage a property by yourself–especially as a landlord, when your time is already consumed by the associated responsibilities. A property manager can handle these problems for you. They can also focus on the laws associated with owning and renting property, so you don’t get caught in a sticky situation. By helping to keep your property up-to-date with legal necessities, a property manager can save you from lawsuits.
Formalize Partnerships
Partnerships that are informally agreed upon can make you liable for situations out of your control. If your partner is personally injured while doing something for you, your assets could be at risk. It’s important to make sure that you don’t have any relationships close to your rental property that are not legally formalized. This will protect you from liabilities.
LEVIN GANN P A can assist you in protecting your assets as a landlord!
If you are seeking out the perfect law firm that will serve you best, LEVIN GANN P A is here. With over a century of experience, we work closely with a wide client base to reach success. We’re not afraid to approach cases with aggressiveness and creativity. Our skilled attorneys do not believe any case is too big or too small to tackle. LEVIN GANN P A knows exactly how important it is that you achieve justice. Don’t wait–get your free consultation today.
Call 410-321-0600 for more information, and we’ll find the best solution together. To keep up with updates on both LEVIN GANN P A, as well as other legal matters, you can follow us on social media using our Facebook, Twitter, Pinterest, LinkedIn, and Youtube.