Protecting Yourself from Liability (sole prop/LLC/UI)

1 Reply

I am starting out in the short term rental market and would love to hear you have set up your real estate to protect yourself from potential law suits.

I already purchased the property in my name and it has a mortgage, so transferring to an LLC is unlikely.

Operating as a sole-prop is there much that can be done to protect personal assets other than buying adequate insurance and an umbrella policy?

@Mike Williams   Two things I do: yes, for sure a good umbrella policy.  Mine is through Liberty Mutual for $2M and costs about $600 per year.

The other thing is to run it as a clean business and document everything.  For example, the insurance company may require an inspection every year or two, and generally will have a list of items (change railing heights, fix a loose brick on the steps).  Complete the items, take photos and document.

Welcome to BP and good luck!

- Tom

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