How to Protect Your Personal Assets as a Landlord

By PropsManager Team | Dec 17, 2025

How to Protect Your Personal Assets as a Landlord

Real estate is a high-liability business.

1. Insurance

Your first line of defense. Ensure you have high liability limits ($500k+) and an Umbrella Policy.

2. Legal Separation (LLC)

Holding property in an LLC (Limited Liability Company) separates it from your personal assets. If someone slips and sues the LLC, they can generally only go after the assets inside the LLC, not your personal car or house.

3. Commingling Funds

Never mix personal and business money. If you pay for groceries with the rent check, a lawyer can "pierce the corporate veil" and say your LLC is a sham, exposing your personal assets.

4. Privacy

Use a PO Box or business address for correspondence. Don't let angry tenants know where you sleep.

Conclusion

Consult an asset protection attorney. The cost of setup is nothing compared to the cost of losing everything.