Lease in LLC name or in owners name titled on property

Dayton, Ohio
Managing Your Property
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Lease in LLC name or in owners name titled on property

Angie Hensley
Member since 2024 · 1 post · 1 vote

We have rental Property that I just created an LLC for. Should the lease be in the LLC name or in our names that the property is titled in?

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  • Kevin Sobilo
    Realtor · Hanover Twp, PA · Member since 2018 · 3k+ posts · 3k+ votes
    2y

    @Angie Hensley, until you do something additional the LLC has no authority to sign a lease to rent out the property.

    Typically, people will quit claim deed the property over into the LLC's name knowing that they run the VERY small risk that the lender could call the loan due using the due-on-sale clause.

    Alternatively, you might be able to make the LLC your "property manager", but that too has potential legal implications as in many states to manage property it doesn't own an LLC might need to be a real estate brokerage to legally do the property management. So, you would need to ask a real estate lawyer in your state.

    Many people skip the whole LLC and just get an umbrella liability policy for themselves to protect their assets which is what the LLC is basically there to do.

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  • Michael SmytheBusiness Member
    Real Estate Agent · Metro Detroit · Member since 2023 · 4k+ posts · 3k+ votes
    2y

    @Angie Hensley 

    Most states require a lease to identify the owner of a leased property, whether a person, trust, LLC, IRA, etc.

    Landlord = Lord of the Land = Owner per deed

    Agent = someone legally representing the owner

    Property Manager = Agent

    Logical Property Management4.9459 Reviews
    WebsiteView Page
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