LESSONS LEARNED: HOW TO PROTECT YOURSELF AS A RENTAL PROPERTY OWNER This case serves as a cautionary tale for rental property owners. Here are essential steps to protect yourself from similar disasters:
IMPLEMENT ASSET PROTECTION STRATEGIES
• Establish LLCs or other legal entities for each rental property to shield your personal assets. • Consider creating a trust to further protect your investments.
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• Ensure you have comprehensive liability insurance that covers environmental hazards, including mold. • Evaluate your policy limits and consider umbrella insurance for additional coverage.
MAINTAIN ADEQUATE INSURANCE COVERAGE
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CONDUCT REGULAR PROPERTY INSPECTIONS AND MAINTENANCE
• Address potential hazards, such as mold, before they escalate into legal issues. • Keep detailed records of maintenance and repairs to demonstrate your diligence.
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• Work with an asset protection attorney to tailor a plan that fits your specific needs. • Regularly review your insurance policies and legal structures to ensure they remain effective.
CONSULT LEGAL AND FINANCIAL PROFESSIONALS
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CONCLUSION Mr. Landlord’s story is a sobering reminder that litigation risks are real and potentially catastrophic for rental property owners. Proper asset protection and comprehensive insurance coverage are not optional; they are essential components of a sound investment strategy. Don’t wait until it’s too late. Proactively protect your hard-earned assets and ensure peace of mind for your financial future.
BRADLEY BARTH, ESQ. Partner BarthCalderon, LLP (714) 704-4828 ext. 114 For a complimentary planning assessment click here.
Bradley Barth is a partner and Supervising Attorney of the firm’s Transactional and Estate Planning Department encompassing business formations and transactional matters, estate planning, domestic and offshore asset protection, probate, trust administration, tax and real estate law. He views his role as a trusted and long-term advocate of asset protection planning in helping his clients achieve and protect their financial goals and lifetime accomplishments.
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