Is it possible to Rent a property under your LLC?

Question

I am new investor and currently building my portfolio.  However, I would like to get a few properties for AirBnB.  I want to know is it possible to rent a property under your LLC?

James Mcsweeney · Answer

I strongly recommend that you talk to a CPA with expertise in real estate before doing this. You should probably also discuss the transfer implications and costs in your state with a real estate attorney.

Shannon Phoenix · Answer

Yes!  You answered my question!  Appreciate this feedback.  Will take this into consideration!

Adam Martin · Answer

I don't think we have been answering your question but correct me if I'm wrong.  I think what you are asking is can you rent someone elses property under an LLC as a long term rental and then list it yourself under airbnB.  My assumption is the goal is going to be to limit your exposure in case something goes wrong you don't want to be personally liable.  I don't see why you couldn't do that however realistically many landlords are hesitant to go for this deal as they have more risk for their property and are limited on the upside but may be able to demand higher rent.  I feel they would be even more hesitant to rent their property to an llc but you may find someone out there willing to do it.  Good luck as there are many successful investors who use the strategy of rental arbitrage and is an interesting niche but it may be a tough road finding a willing owner, especially if you are not willing to use your personal assets as backing and would prefer the LLC method.

Kenneth Garrett · Answer

@Shannon Phoenix

Yes, you can own a property in a LLC and rent it out.  On the lease you will still need to sign your name on the lease (check your state laws) as the pm if you’re going to self manage.  I self manage all of my properties and I use my LLC as the owner and pm.  Otherwise all information is LLC related.

Shannon Phoenix · Answer

@Kenneth Garrett

Thank you for the information.  I have not been on for a while as my other business began picking up.

I do understand the dynamics of the LLC.  However, my question was more so directed towards the ability to rent a property under my LLC versus my name.  I am not looking to purchase at the time in the area that I’m hoping to do this in but would like to rent a property instead for Airbnb purposes.

Kenneth Garrett · Answer

@Shannon Phoenix

How you hold ownership has nothing to with renting a short or long term rental.  An LLC is designed for asset protection in the event there was a law suit stemming from the property. Holding property in an LLC limits your ability to finance the property.  You are required to get commercial funding not residential.

Shannon Phoenix · Answer

@Natalie Kolodij Thank you

Natalie Kolodij · Answer

Yes.

Is it possible to Rent a property under your LLC?

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