Lease personally owned property under an LLC?

Question

I have 2 personally owned rental homes that both have mortgages in my name. I recently opened an LLC for purchase of a 3rd property next year. Until then, is it legal and will it make sense to begin leasing my 2 rental properties that are personally owned under the LLC? I know I will still be personally liable as I am the owner, not the LLC, and I will still hold insurance in my name. However, I am trying to build credit for my LLC and having income for the LLC would certainly help. Both leases are up in the next couple of weeks and I can switch to the LLC as the lessor on the new leases. Are there any risks with doing so?

My goal is to build credit for the LLC to be able to get a mortgage in the future. I do not want to quit claim the deeds to the LLC for fear of the lender calling the notes.

My goal is to build credit for the LLC to be able to get a mortgage in the future.  I do not want to quit claim the deeds to the LLC for fear of the lender calling the notes.

Bill Gulley · Answer

Yes, your LLC can manage with/for you, don't change title. An LLC doesn't establish credit by income, but it takes income to borrow to establish credit. Check the broker requirements in OK for owned RE managed by your subsidiary or entities. :)

Scott Thompson · Answer

Thanks for your input.  I would assume that this situation would be similar to having personal property and utilizing a property manager for them, only I would be the owner and the owner of the property manager.  Maybe somebody has done this before and can provide input?

Scott Thompson · Answer

Can anyone help?