Legal Question in Business Law in California

Re: Use my house as basis for Property Rental LLC

If you have a mortgage, and you transfer the house to an LLC, it's likely your interest would no longer be tax deductible. I don't know how many college profs want or need short terms rentals with chefs and masseuses. The best racket going for renting out rooms in your house is to start a rehab.

Re: Use my house as basis for Property Rental LLC

Disclaimer: The materials provided below are informational and should not be relied upon as legal advice.

Transferring the property to an LLC may protect you against future tort and contract liabilities. However, it will not protect you against extisting contract and tort liabilities. You will be well advised to also purchase sufficient insurance coverage for all possible liabilities. An LLC holding one property should work fine. You should consult your own attorney to help protect your legal rights.

Re: Use my house as basis for Property Rental LLC

I would add to the previous comments that transferring encumbered property to anyone, including an LLC, is probably going to violate your loan terms. If you own the property free and clear, you could transfer it to an LLC, but then if someone were injured they would sue the LLC and the LLC could lose its asset, the house. Insurance is your best bet.