All Forum Posts by: Harshal Gaikwad

@Joe Homs    Thank you very much for the reply again.

As I understand, then:

" I don't need to do Step 1 at all (Moving Title to our Rental LLC). I just need to the assign the Rental LLC to the Trust and we'll be all set"

Pls confirm this is accurate?

P.S.: I will google and contact Anderson Business Advisors asap

@Joe Homs thank you much for the detailed response again. It makes sense, however just summarizing my understanding:

1. Step 1: We can move Title to our Rental LLC

2. Step 2: We assign the Rental LLC to the Trust

3. That's it - no need to modify the existing lease. The Trust owns the rental LLC, so we are covered

Kindly confirm if I got the steps right? Sorry bit of a novice on some of these things and highly appreciate your guidance Sir!

Also, asking 2 additional questions:

A. Should I just send  a ‘notice of ownership change’ to the tenants once step 1 and 2 are complete and take an acknowledgment?

It will just be an informational statement that I completed the ownership change but am still the owner and no terms of the lease change including where they remit rent. FYI they already remit rent to the LLC business account which is stated in the lease.

B. Kindly provide me the website or contact details of Anderson Business Advisors. I will contact them for getting Step 2 above done. I have another attorney I work with but will definitely would not mind working with Anderson Business Advisors.

Thanks in advance for your response

Much appreciated!

Best Regards

 
Harshal

@Joe Homs Thank you so much for the response sir!

A few more clarifications: 

The revocable trust we have has many other assets attached too including primary residence, bank accounts etc which we don't want to attach to the LLC. The LLC was created for the rental property alone. So changing the beneficiary of the trust to the LLC may not be an option! Also the rental LLC is registered in the state of California as the rental property is in California!

Having said that, what is the best option now? The current lease with the renter is in the name of the Trust.

Can we redeed the title to the LLC and do not change the Lease? we have filled in the docs just need to send to the County.
My assumption is that Trust will ultimately own the LLC (we are going to assign LLC to the trust, once the tile is redeeded to the LLC?

Hope this explains the conundrum! 
pls guide the best next steps

Thanks 

Harshal

Hello Community:

I have currently rented a property to a tenant and signed the rental agreement in the name of Trust. The Trust is the on the Grant Deed (Title) as well.

We have recently created a rental LLC and I am in the process of re-deeding the property to the Rental LLC. In addition, I will be assigning the rental LLC to the Trust, so Trust owns the LLC as well.

Question ins regarding the lease itself since we are still in the middle of it. Here are some of the options I read:

1. Create a simple lease amendment notifying the tenant of the Landlord Ownership change and that nothing else in the lease changes.

Get this amendment signed by all parties

2. Do nothing: The Trust ultimately owns the LLC and therefore even if the property is re-deeded to the LLC, trust has ownership right too

3. Send tenants an notice of ownership change that you no longer own the property but now the LLC does

The tenant will be making payment to the Rental LLC account that was specified in the lease. so that's not an issue.

Which of the options above are the best? Google search isn't giving me an authoritative answer.

Any expert advice will be helpful. For context, property is located in Southern California.

Many Thanks in advance