Investor · Southeast, MI · Member since 2012 · 2k+ posts · 1k+ votes
There's another thread going on about LLC vs. higher liability insurance.
I'm just wondering if any of you have ever been sued by your tenants? If so, what happened?
Some people are setting up an LLC on each house. I think that's going overboard.
Everyone is always so paranoid about lawsuits. I've had over 100 tenants and have never been sued by anybody (I'm knocking on wood right now). I know many landlords, but I've never heard of any of them being sued either.
I had one disgruntled tenant that I evicted threaten to sue me over an alleged illegal eviction. She wasn’t able to have me served as I keep a low profile and am not easy to find. After a bunch of nasty phone calls, I never heard from her again.
Also, if there's already a thread on this, I apologize. I didn't see one.
Just curious if anyone has any first or second hand stories about this very thing.
I gave the secretary of state Bill Gulley 's address for my LLC...just for an added layer of protection! I figure..let him deal with any of my headaches! HA!
Providing you have good liability cover and make sure you cross insure with your property manager why worry? We have 1 million of our own and 5 million with our PM. They have never had a successful suit in 30 years so it is a pretty notional only risk right?
Brian Hoyt i couldn't agree with you more - people are so afraid of LL - & the movie "Pacific Heights" does a lot of 'em in.
I remember last spring, I was getting into my 3rd rental & I was chatting with this guy. He said I was nuts to do it (of course, quoted Pacific Hts) & told a story of a neighbor rental (these were $300-$400k houses) where the tenants never paid rent...then got another tenant (this time screened from a real estate agent) &, again, skipped on payments.
Bottom line is, yes, tenants may not pay you...after all, people lose their jobs...things happen. But (knock on wood) most do pay on-time (I've had 71/73 months of rent collected on time thus far).
Our biggest industry trouble is not collecting the rent.