Sub-Lease to Tenant


Faster, easier, less expensive, and better than deeding your rental property to an LLC (or other business entity). If your rental property is owned by an individual, but you would like to lease the rental property to a tenant from your business entity (for asset protection and/or some other reason), then you need to lease the rental property to your business entity (i.e., LLC or corporation) and then do a sub-lease from your business entity to the tenant.  To do this, you will need: (1) a business entity, (2) a Master Lease from you (the owner of the rental property) to your business entity, and (3) a Sub-Lease from your business entity to your tenant. The Sub-Lease can be either a Short-Term Rental Agreement or a regular residential rental agreement.

This is “high level” asset protection. Because you will lease the property to your new LLC, the LLC will not own the rental property and, therefore, the rental property is not an asset of the LLC. If the LLC is sued and a judgment entered against the LLC, collection of the judgment is limited to the assets of the LLC. In addition, because this is not a sale, you will not need approval from lienholders or lenders for the rental property and/or a separate title insurance endorsement from your title insurance company. The money you save by doing a Master Lease and Sub-Lease, instead of a sale/transfer of the rental property, will offset all or most of the expense of al Master Lease and Sub-Lease.

Both the Master Lease and Sub-Lease will be drafted specifically for you (or the owner of the rental property, e.g., trust) and the rental property. I will draft the master lease from you to your business entity and then custom-draft a sub-lease from your business entity to the tenant. I only need to draft the master lease and sub-lease one time. Thereafter, you may use the sub-lease for subsequent tenants.  My fee for drafting the foregoing documents is $1,495.  If you do not have an LLC or corporation, I can form an LLC for you in about one week for an additional fee of $500.

Call me today to get started: 1-866-957-6247

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