Legal Question in Real Estate Law in Oregon

Re: rental properties

Yes and Yes. Remember to insure the property under the name of the LLC.

Re: rental properties

Forming separate LLC's to own and operate separate rental properties is commonly done and makes sense from both a limitation of liability and an accounting standpoint.

Bear in mind however, that an LLC does not avoid all personal liability. If you personally do something that causes another harm, you can be held personally liable, even if the act was part of your duties on behalf of the LLC. Also, if you personally guarantee an LLC obligation, you will be personally liable for the obligation no matter what. There are other nuances too.

Still, the LLC idea you mention is a good one that does provide "a good amount of liability protection." It is not, however, something that solves all potential liability problems down the road.

Best of luck.

Very truly yours,

Re: rental properties

Make sure that after forming your LLCs (whether each property is seperate or all the apartments are contained in one) that you follow the formalities in maintaing the LLCs.

Mainly, sign your all your contracts (with vendors, contractors, tenants, etc) as the managing member and have your agents sign in the name of the LLC.

Also keep your annual registration current, keep annual minutes, and don't commingle assets.

Forming the LLC can be the easy part, whether you're in the habit of running it as one may decide whether a plaintiff or creditor will be able to "pierce the veil" and reach some of your other assets.

It's certainly worth doing, but it will take extra work to keep it up.