Putting the property in a company
A real estate holding company is usually an LLC that holds a rental house, a small building, or raw land. The LLC can appear on the deed, sign the lease, and keep the rent account. Some owners use one LLC for one property so a claim tied to that building is easier to separate from other assets. Others hold a small group of properties in one company.
The company should have an operating agreement, its own bank account, and records of rent and expenses. If the mortgage, the insurance, and the repairs are all paid from a personal account, the deed is doing less work than it appears to. A series LLC is a different tool and needs its own legal review before you use it for property.
Insurance still matters
An LLC is not an insurance policy. A landlord still needs property coverage and liability coverage sized to the building and the people who live or work there. Lenders commonly ask for proof of insurance. Extra liability coverage is a question for your insurance agent, based on the property and the leases.
If a claim is larger than the policy, or if a loss is excluded, the articles of organization do not pay the difference. Keep the policy in force and tell the insurer how title is held so the named insured matches the owner.
Lending and title rules vary
Many home loans and commercial loans limit transfers of title. Moving a house into an LLC can conflict with a due-on-sale clause, or the lender may require a personal guarantee and fresh approval. Some lenders consent. Others will not finance a purchase in an LLC on the same terms they offer an individual. Ask the lender before you sign a deed.
Title companies and county recorders differ on how the deed should name the LLC and what proof of signing authority they want. A transfer can also have tax consequences that depend on the property and the owner. Rules vary by loan type, by county, and by whether you still live in the property. This is general information, not legal advice. Wyoming Digital LLC can form the company if you decide to use one. The package is $99 plus state filing fees. We are not a law firm and we are not a tax advisor, and we do not review deeds, loans, or insurance.
Common questions
Should each rental be in its own LLC?
Many owners separate properties so a claim is easier to contain. Others keep a small portfolio in one LLC. Loans, insurance, and the cost of extra filings all affect that choice. Ask counsel and your insurer.
Does the LLC replace a lease and local rental rules?
No. You still need a lease, any local rental registration, and compliance with landlord-tenant law where the property sits.
Can I deed a mortgaged house to an LLC?
Only after you understand the loan. Talk with the lender before you record a deed. A transfer the loan forbids can create a default.