630-780-1034
Facebook
Gateville Law Firm

Asset Protection Tips For Rental Property Ownership

Posted on in Residential Landlord Evictions

Kendall County Rental Property Lawyers

Property Protection Attorney in Yorkville and Kendall County

Property ownership is a big responsibility and is a huge liability concern. Real estate investors and landlords are often ill-prepared in how they structure their rental property ownership structure. Proper business structure is vital for real estate owners because one lawsuit can wipe out a lifetime of wise decisions.

Real Estate Asset Protection: Kendall County Real Estate Attorneys

Realtors and lenders often say that renters should fire their landlord. In many cases, landlords regret their decision to invest in rental property. Rental property is a long-term investment, which must be protected. In many cases, we see families that have real estate title vested in each other’s names or in one person’s individual name. This is a tragic mistake.

Limited Liability Company Attorney for Real Estate Investors

At Gateville Law Firm, we assist property owners, landlords, and real estate investors structure their rental property to protect their hard-earned investments. Last week, we had a consultation where spouses own two rental properties in Aurora surrounding Will County, Kane County, and Kendall County. Property title ownership was in both spouse’s joint name, which was a big mistake. 

The proper way to structure rental property is with the creation of an LLC or otherwise known as an “Limited Liability Company.” An LLC provides asset protection and lawsuit protection for landlords in case of a lawsuit. Furthermore, couples make the mistake of setting up one LLC to own multiple rental properties. Each rental property should have its’ own LLC. The benefit of separate LLCs is each property is protected against liability concerns of the other property. Multiple LLCs is like have virus protection on each computer. The virus protection provides a safety net for each computer or in this instance, each rental property.

Kendall County Series LLC Law Firm

Series LLCs provide cost-effective real estate protection and asset protection for rental property owners that own multiple properties. Lawsuits are a significant liability concern for real estate investors. Inadequate asset protection is a serious concern because one lawsuit could threaten a family’s entire real estate portfolio.

Series LLCs were developed because real estate investors demand simply and cost-effective techniques to manage multiple property ownership. A Series LLC allows a landlord to pay a higher price for the parent LLC and purchase additional sister LLCs for $50. Series LLCs are an excellent legal strategy for rental property owners that own three or more rental properties. 

Series LLCs provide asset protection where a landlord can segregate ownership of each rental property into its’ own LLC. One of the benefits of a Series LLC is the ability to file one annual return for the family of LLCs owned by the Series LLC or the Parent LLC. The goal is for each rental property to be owned by its’ own LLC under the Parent Company Umbrella.

Kendall County Rental Property Lawyers Serving Yorkville, Plano, Aurora, Plainfield, and Joliet

The attorneys of Gateville Law Firm serve rental property owners, landlords, and real estate investors in the Yorkville and Kendall County area and nearby suburbs. Gateville Law Firm concentrates in real estate and estate planning law for real estate owners. Our attorneys are uniquely qualified to assist landlords and property owners with the following transactions:

  • Landlord Evictions

  • Formation of Limited Liability Companies or otherwise known as “LLCs”

  • Real Estate Closings for Landlords and Real Estate Investors

  • Estate Planning for Real Estate Owners

 

Reach out today at 630-780-1034 to have a qualified rental property attorney assist you.

 

Back to Top