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Liability Management for beach rentals?

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  • Liability Management for beach rentals?

    I own several short term beach rental properties.  What is the best way to manage my liability exposure on these properties?

  • #2
    In addition to appropriate insurance coverage, you should use one or more LLCs (NOT S-corporations). If you are in a state allowing series LLCs, that would be perfect. Otherwise, you have 2 choices:

    • Put them all in the same LLC. Less complexity and lower cost for administration but if the LLC is sued for one of the rentals, all are at risk.

    • Put them in separate LLCs. More administrative burden and costs but your liability is limited only to individual properties in the event of a lawsuit.

    Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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    • #3
      Thank you Johanna!  That is consistent with my thinking.

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