Pros and Cons of making a rental property (triplex) in an LLC
@Janette Perez As far as I see it, there are two advantages to setting up your property in an LLC:
- Liability Protection (and this is the main one) - if you have a lot of other assets, putting your property in an LLC isolates those assets in the case of a law suit or some other liability issue. For example, if you do not have an LLC and someone slipped on your stairs and you were held liable, they could sue you for damages and collect on your other assets. If you have an LLC, they are limited to collect only on the assets held by the LLC. This is often overkill for one property unless you have other assets to protect.
- Convenience - setting up an LLC is generally less convenient than just buying the property in your name and keeping it there, unless you have multiple partners you're purchasing it with. An LLC makes it easy to manage the property among multiple partners.
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