Liability Protection : Short Term Rental ADU on PrimaryResidence

[Ek D.]

Hi,

I am planning on setting up 2 rental ADU on my property in Seattle, it's a 1/2 Acre Lot so space is not a constraint, but I need some inputs on liability protection strategies anyone has implemented for a short term rental ADU on your primary residence backyard.

For instance, Are there options to split the lot and sell the ADU Occupied land to a LLC, and this LLC is operating the Rental Units in the backyard? So in case of a lawsuit, it would be separated from any equity in the primary residence?

Thanks

[Sherief Elbassuoni]

@Ek D., I am not a lawyer, and you will need a RE lawyer for that. You can discuss with the lawyer the option of creating a condo-association and have the main unit and the DADU as a condo association. Then the DADU can be movedsold to LLC.

THe lawyer will give you more details about this option