I have a short term/vacation rental property that I own in MI. I started an LLC and was going to put that property in it for liability reasons. How do I go about transferring the property into my LLC? Will this have any effect on my mortgage or insurance for the home?
@Reva Gorbaty Is this the only rental property you own? If not, how many others do you have? Have you gotten quotes from your insurance company to add it for short-term rentals and also quotes for an umbrella policy (usually VERY cheap to add a million or more to existing policies.)
Hi Richard, currently this is my only property however I will be acquiring more. For the further I don't know if each property will go under the same LLC or individual ones. As for insurance, I have been talking with them and getting quotes for million $ liability and umbrella. I was under the impression from the insurance company that all I would have to do was change the name on my policy from mine to LLC.
You may want to check the Due on Sale clause with your lender holding lien on the property. Sometimes this transfer of ownership can trigger it and the bank require the note paid in full immediately. Each lender Is different, but you'll want to check with them. Would hate to have the mortgage due in full because transfer of ownership.