Landlord and Tenant agreements after ownership changes into LLC

[Nancy D.]

Hi,

I'm considering deeding my investment properties into individual land trusts, and then assigning my beneficial interest in the land trusts to individual LLCs to provide asset protection. My real estate attorney has advised me this is a way to transfer property to an LLC to ensure privacy.

My question is in regards to my landlord/tenant agreements that are currently in place. Do I have to amend the lease agreements to reflect the change in legal ownership of the rental properties once done? I'm not selling my properties, I'm merely transferring their ownership to an LLC (which is owned by me) so while I understand the legal aspect of deeding properties into land trusts, then assigning beneficial interest into LLC, I'm not sure what happens with my current rental agreements.

If I do change the legal ownership, do my current tenants have to be informed? Once leases are renewed, I understand we'll likely make a lease under the LLC.

[Jessica Zolotorofe]

It shouldn't be an issue. Usually landlord is defined as owner of the property, or your name and your successors and/or assigns. And even if not, you take title to the property subject to leases anyway, so the lease transfers to the new owner effectively as a mater of law. Tenant's rights aren't impacted, but you should (and may even be required to under the lease) send them a notice informing them that the entity or trust is the new landlord and rent has to be paid to that entity, or whoever you transfer to, in order to avoid commingling funds. Hope that helps!