Personal property rental to LLC renta

5 Replies

I have a personal asset that I will quit claim into an LLC the renter has been there for some time and will then start paying rent to the new LLC. My question is should the address should be the actual address of the rental property? Should I just set up a different mailing address? I guess I just don’t want the tenant to get business mail. Thoughts and advice on this?

@William R. Matthews IV Depending on the rules on your state/county, if you change title to the LLC you may trigger a transfer tax. If you have a mortgage and change title to LLC, understand that you may trigger the due on sales clause.

Some of my fellow investors transfer to a land trust and make themselves the beneficiary. This may eliminate both potential side issues. Additonally if you ever sell the property in the future, you can just change the beneficiary and avoid the transfer tax

I would never have the rental as the business mailing address. Is there a reason you wouldn’t use your own mailing address or PO Box?

@Matthew Enos thanks for the reply. I’m in Virginia and have another mailing address I can use I just don’t want the tenant to get spammed. The asset is paid for already so no worries on the previous mentions. You think I should set the entity up with the rental prop address and just have the mail come to my personal address?

@William R. Matthews IV I set up mine with the LLC address as my personal address. I was required to have a physical address and we didn't own an office or another physical location

Originally posted by @Matthew Enos :

@William R. Matthews IV  Depending on the rules on your state/county, if you change title to the LLC you may trigger a transfer tax. If you have a mortgage and change title to LLC, understand that you may trigger the due on sales clause.

Some of my fellow investors transfer to a land trust and make themselves the beneficiary. This may eliminate both potential side issues. Additonally if you ever sell the property in the future, you can just change the beneficiary and avoid the transfer tax

I would never have the rental as the business mailing address. Is there a reason you wouldn’t use your own mailing address or PO Box?

 Thanks for this info very helpful

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