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Is rental property a liability?

Is rental property a liability?

As a property owner, a landlord usually has some degree of liability for rental property. Conversely, if someone is injured or damage to the property is caused by proven negligence on the tenant’s part, the tenant can be held liable.

How can I protect myself from rental liability?

Owning your rentals in an entity (typically an LLC- Limited Liability Company) is just one of many asset protection strategies for protecting your personal assets from liability arising from your rental activities.

What kind of insurance do you need for a rental property?

In fact, one policy could be structured to cover several rentals and even your personal assets/residence. Having proper liability, property and maybe an umbrella insurance policy is critical for rental property owners. However, it isn’t the fail safe in every possible claim.

Can a landlord be liable for the safety of a tenant?

Be careful who you hire and make sure they are liable for any damages or negligence so you can include them in any lawsuit and hopefully mitigate any of your damages. HOWEVER, on the other hand, the landlord is not required to be the “insurer” of the safety of tenants or others who come onto the property.

Do you have a duty to maintain a rental property?

You have an inherent duty to maintain the property in a safe condition and the law does not generally permit a landlord to disclaim responsibility for his/her/its own negligence. This includes if you hire a ‘property manager’.

Owning your rentals in an entity (typically an LLC- Limited Liability Company) is just one of many asset protection strategies for protecting your personal assets from liability arising from your rental activities.

Be careful who you hire and make sure they are liable for any damages or negligence so you can include them in any lawsuit and hopefully mitigate any of your damages. HOWEVER, on the other hand, the landlord is not required to be the “insurer” of the safety of tenants or others who come onto the property.

In fact, one policy could be structured to cover several rentals and even your personal assets/residence. Having proper liability, property and maybe an umbrella insurance policy is critical for rental property owners. However, it isn’t the fail safe in every possible claim.

You have an inherent duty to maintain the property in a safe condition and the law does not generally permit a landlord to disclaim responsibility for his/her/its own negligence. This includes if you hire a ‘property manager’.