Business Structure for Multiple STRs
For those of you who own more than one STR. How do you have it structured?
I see a lot of discussions about placing properites in an LLC, but the discussion tends to end there. When I look at Airbnb profiles, I often see owners that managed those properties under their own name. "Joe" is the host and also hosts 5 other properties. Isn't that risky from a liablity standpoint? When people sue they often sue the property and the property manager. If the property manger is the owner of that property it seems like he puts that property and all his or her other properties at risk.
I'm trying to create a structure that will provide me with a reasonable amount protection without being a nightmare to manage. After listening to some podcasts on the subject (BP Rookie 105 for example), it seems like something like this would provide the best protection.
The management company would basically be "hired" to run the properties but wouldn't actually own anything. Funds would go through the management company, to the property (pay bills) then go to the investment company which is where I would gain my paycheck.
Of course I also have an umbrella policy and each LLC would have its own liability coverage.
Am I making this to complicated? I would love to hear how you guys have set up your businesses.
Thanks.
Last, to respond to some comments that I know are coming.
- Yes, I understand that a forum is not the best place to get legal advice.
- Yes, I have an appointment with a Lawyer on Tuesday so I'm not just relying solely on this thread.
- Yes, I do know how to use the search function, but I still haven't found what I'm looking for (♫ U2)
- Yes, I overthink everything... that's just who I am.