Owning investment properties can be an exciting and lucrative decision. However if you’re considering an investment in real estate (whether a vacation rental, long-term rental, or for re-sale), be aware that these properties can also create liabilities.
For example, a tenant might trip on a wobbly staircase. A guest could slip on an uneven sidewalk. Faulty electrical wiring causes a fire or shocks a tenant. A clogged chimney leads to a flue fire. Or a slow leak might result in mold that affects a tenant’s health.
Accidents happen. And when tenants or guests are injured on your property, victims can sue the property owner (you) for damages.
I don’t want to scare you off from real estate investment, but I do want to prevent you from falling prey to what could have been so easily avoided in the first place. Continue reading “Owning Real Estate in a Limited Liability Company: Pros and Cons” »