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Hello
I have a few rentals and have always used my name on the lease. I’ve never used section 8 tentants before but have found a potentially good one after interviewing prior two landlords.
From a liability/protection standpoint, does it make any difference if I use my “management co. name” on the lease vs just using my name?
Thanks,
Dan
Dan,
If you use your personal name and the tenant sues you, they will come after everything you own personally – ie house, bank account, etc.
If you use a company name, like LLC or Corp then they cannot get your personal assets. However, if you own multiple properties under that one company a lawsuit could put them all in jeopardy. If a tenant won a judgement, it would go against every single property owned by that entity.
The better way is to use a Trust with that one property as the only asset and your entity as the beneficiary. Then if there was a lawsuit they would have a hard time finding who the beneficiary is and could not get any company assets or personal assets and they would not be able to go after any other properties.
Jack and Peter strongly advise holding title in a Land Trust. There is no filing fee with the state. There are no recorded documents. It is all very private and that is exactly what you need in this sue happy society.
Jackie
p.s. You can easily deed the property from your name personally into a land trust. You would just record the deed. All other paperwork is kept in your file cabinet.
Jack has a great e-book about using Trust — it si $9.95. There is also information in the foundations of wealth and 12 step road to riches online seminars.
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