Airbnb-ing a Primary Residence

[Patricia Kwan]

Hi all - new to the Bigger Pockets forums, so apologies if this has already been asked before, but wondering if anyone here has experience renting out. a private room in their primary residence? I am trying to figure out if people generally run these are sole proprietorships or through an LLC. I'm not sure it's so straightforward to put a room in your primary residence into an LLC but at the same time worried about the risk exposure if I don't - any thoughts on the pros and cons of either would be appreciated!

[John Underwood]

Quote from @Patricia Kwan:

Hi all - new to the Bigger Pockets forums, so apologies if this has already been asked before, but wondering if anyone here has experience renting out. a private room in their primary residence? I am trying to figure out if people generally run these are sole proprietorships or through an LLC. I'm not sure it's so straightforward to put a room in your primary residence into an LLC but at the same time worried about the risk exposure if I don't - any thoughts on the pros and cons of either would be appreciated!

 Are you going to run a full background check on these people or are you going to just risk your family with renting to a potential child molester or serial killer?

[Sergey A. Petrov]

Check with your insurance company first - they might have an opinion on what you are planning on doing

[Patricia Kwan]

Quote from @Sergey A. Petrov:

Check with your insurance company first - they might have an opinion on what you are planning on doing

Planning on swapping over to Proper insurance!

[Sergey A. Petrov]

I think for just one room in your own home with proper and plenty of insurance, there should be no reason to form an LLC…

[Bruce Woodruff]

I also think you do not need an LLC for this. I, like John, would be more concerned about the dangers of having a weirdo show up. Make sure you are armed and dangerous.....