Should I open a separate LLC for my STRs?

Question

Does anybody have some options on lumping STR properties with long term rentals in the same LLC or would it be better for them to be separate entities.  Just would like opinions not legal advise.

Jason Marino · Answer

The previous comment by Mordechai is accurate. The best practice with multiple properties is to attempt to compartmentalize each property into a seperate LLC or limited liability vehicle. This limits the ability of a law suit on a single property to access assets that are not related to the law suit. At scale, some larger investors will decide to batch several properties into a single LLC.

Craig Frankie · Answer

STR - short term rental

LLC - Limited Liability Company

Mordy Chaimovitz · Answer

I was advised by a mentor to avoid lumping properties into one llc as much as possible.

one of the main benefits of an llc is that it protects personal assets that are not in that corporation from litigation.

Similarly if you have ten properties in one llc and you have a lawsuit in one of those ten properties, Then all ten are liable.

However if you separate them, then your other entities/properties should be protected as they are not part of that corp.

has anyone heard otherwise?

Eric Mcginn · Answer

If you don’t have lots of personal assets to protect you really don’t need to worry and it. But many commercial lenders will require you to close with an LLC so having one will give you flexibility.

You don’t need a lawyer to open a LLC but it’s a good way to maintain a relationship for when you need other stuff and should only cost a couple hundred bucks a year. For them to maintain your LLC filing.

Himanshu Singh · Answer

Do you need to have a lawyer or CPA once the LLC is setup ?

Eliott Elias · Answer

I keep everything on one LLC for clean record keeping and so I can file one tax return

Jasper Johnson · Answer

What is STR or LLC? Sorry, I am new hear

Should I open a separate LLC for my STRs?

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