ownership (by Drew [FL]) May 11, 2019 8:26 AM|
ownership (by Robert J [CA]) May 11, 2019 9:01 AM
ownership (by S i d [MO]) May 11, 2019 9:24 AM
ownership (by AllyM [NJ]) May 11, 2019 9:36 AM
ownership (by S i d [MO]) May 11, 2019 9:46 AM
ownership (by Oregonwoodsmoke [ID]) May 11, 2019 9:47 AM
ownership (by DJ [VA]) May 11, 2019 7:58 PM
ownership (by Drew [FL]) May 12, 2019 8:49 PM
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ownership (by Drew [FL]) Posted on: May 11, 2019 8:26 AM
State Specific Question About: FLORIDA (FL)
Is it safe to rent to tenants as a husband and wife or is it safer to be a business and rent to people? --172.243.xx.xx
ownership (by Robert J [CA]) Posted on: May 11, 2019 9:01 AM
A husband and wife team owners who rent out their property to people need to named on the "fire/liability" policy as "covered". You need to carry enough coverage and obtain a "Umbrella Policy" for extra coverage. So if there are any legal issues -- the both of your, and if you have a family trust all named and insured for protection. --47.156.xx.xx
ownership (by S i d [MO]) Posted on: May 11, 2019 9:24 AM
Hi Drew, welcome to Mr LL!
I'm not quite sure what you're asking, but my guess is somewhere along that pathway to thinking about being a land lord someone told you to form an LLC or other business entity to hold your property so you don't risk losing your life's savings and home in the event you are sued. While that can be part of a viable strategy (I use it!), there is a lot more to consider.
First you want to check out the requirements for setting up and maintaining a business entity in your state. There are rules and fees that are unique. An LLC in Missouri will be different than in Florida: different costs to incorporate, maintain, etc. Also, one example of differing costs is in Missouri I have to hire a lawyer if we sue a tenant to evict, because an LLC is a separate legal "person" in the eyes of the law, and I cannot represent a "person" in court as that would be practicing law without a license. Go figure. So there's an extra expense since I have to hire an attorney vs. just filing myself. I would hire an attorney anyway, but just keep that in mind.
LLCs are just e one aspect of liability protection, but you will also want to look into knowing your state's land lord/tenant laws backwards and forwards, know your local municipal ordinances and housing codes, study up on Federal Fair Housing and the Americans with Disabilities Act, and also look into umbrella liability insurance. All this to say: protecting your assets is a multi-layered task.
Tell us a little about your plans and maybe we can offer more helpful advice. --173.20.xxx.xxx
ownership (by AllyM [NJ]) Posted on: May 11, 2019 9:36 AM
I have been doing this as a private person for 25 years. My parents ran it that way also. Eventually they put half in a trust to avoid inheritance taxes. But they had no trouble as a husband and wife and neither did I. Just treat everyone as you would like to be treated and make sure every rental is good enough that you would use it yourself. --173.61.xxx.xx
ownership (by S i d [MO]) Posted on: May 11, 2019 9:46 AM
I read AllyM's post, and while I agree with her on treating people fairly and ensuring rentals are in good condition, I don't believe that's a comprehensive solution.
Sometimes what we don't know can hurt us. And there is a LOT to know.
For example, let's say you are showing the property and the prospective renter tell you they have an animal. But you don't allow animals. They tell you they have what's called an "ESA" and that they are allowed to have it. But you don't know what an ESA is and the person doesn't appear to have a disability, so you ask for a letter from a doctor explaining to you in detail what their disability is and also demand proof of vet records. What you DON'T know is people claiming the right to an Emotional Support Animal (ESAs) do not have to have letters from doctors, that you are legally not allowed to ask about the nature of their disability, and immunizations are not required for ESAs. You have just violated the law, and if the "prospective renter" happens to be a Fair Housing tester, you could get hauled into court and fined severely.
The world is full of ways to mess up with the law, and new ones are being written into law every day it seems. The condition of the property is only one aspect of what you'll be dealing with. Since there's no perfect land lord school that will address everything you need to know and do, I stand by my recommendation of the multi-layered asset protection:
1) Education: know the laws and ordinances
2) Business-like conduct
3) Business entity
4) Liability insurance
There are other things to consider, but that's a good start for a new land lord.
ownership (by Oregonwoodsmoke [ID]) Posted on: May 11, 2019 9:47 AM
Thanks Robert for figuring out what the question means.
Drew, it they are going to sue you, they are going to sue you. It is safer to keep good liability insurance paid up and to keep your rentals in good repair to eliminate trip hazards and other possible dangers.
Limited Liability Company ( LLC ) provides only marginal protection. But some landlords find tenants easier to deal with if the tenants don't know that they are the owner. --98.146.xxx.xxx
ownership (by DJ [VA]) Posted on: May 11, 2019 7:58 PM
I highly recommend the bootcamp advertised on this site. You will get excellent training there on this question and SO MUCH more.
And keep coming back here to post & read
I've done it both ways. Most folks starting out with there first house just own it in their own name. Sid is sharing good information. Just don't wait until everything is all set up and perfect to start doing something - gotta take that leap --68.10.xxx.x
ownership (by Drew [FL]) Posted on: May 12, 2019 8:49 PM
thanks to you folks for those that have responded to the subject of ownership. Your responses where very helpful and has given me a lot to consider and learn about. --172.243.xx.xx
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