Renting to an LLC

[David Garcia]

Hello BP, I have a question about renting to an LLC. I have a property with two units and have a couple that is interested in renting the front unit under their name to live in. They also want to rent out the back smaller unit under their LLC, one of them works from home and runs their own business. My question is what are the pros/cons of renting to an LLC and should I have their names on the lease for the rear unit along with the LLC name? Thanks in advance...

[David Garcia]

Quote from @Bill B.:

I’d ask a local expert. But I would either lease to the llc and both people or to the llc with both people as guarantors. I’d also have a good idea of what they say they’re going to do in the empty space. If you’re ok with what they say they’re going to do, I would ban everything else. “The space to be used EXCLUSIVELY FOR…”. You don’t want it to suddenly be a car body shop or a short term rental. 

@Bill B. - ok that makes sense. Most definitely will specify what it may be utilized for exclusively so it does not turn into a body shop or STR. Thanks for the advice and responding.