STR Site - Forum General Advice 1 2 3 4 5 Next » A Short Term Rental (STR) Forum Community

[32Lat10]

Hi, I am in process of acquiring a new property for sole purpose of STR in AirBnB and VRBO. My agent recommended me to do an LLC and have the title under LLC name. I will still get mortgage with my guarantee and get individual rental property mortgage. They are saying it's better for legal protection as I can run it under the entity now and keep accounts clean vs my personal. Any advice on this? Is this really useful or is my agent just telling me something to close the house?

[ally140]

Talk to an attorney and an accountant- not your agent who just wants your commission. There are plenty of people on here who recommend an LLC but it all depends on your scenario.

[Inspired]

Sure put it in an LLC but your main protection should be short term rental insurance with an umbrella policy. The host guarantee from airbnb is worthless.

[the810]

We have an LLC for our small Airbnb biz, but primarily because of tax savings. As our attorney said, “Anyone can sue you for anything, any time.” The protection offered by an LLC isn’t to prevent suits but more to prevent the loss of personal assets due to a successful lawsuit as well as potential tax benefits. Negligence is almost always the key component in a successful lawsuit.

[yyznomad]

It helps with liability for sure but good liability insurance is just as effective. Both are better than one. As others have said, make sure you have an umbrella policy. If your're smart and put the mortgage in the LLC then you can just sell the LLC when you want to sell the property and no refinance would have to happen. But most people don’t want to do that because the rates are higher and you need to find the right lender willing to work with you.