INVESTORS – AVOID PERSONAL LIABILITY – CREATE ASSET PROTECTION

Our message to buyers is clear – Investors Avoid personal Liability – Create Asset Protection.

Investors who are buying real estate should be aware that owning property in their name exposes them to liability. The most substantial business reason to create a legal entity (like a corporation, trust, partnership, limited liability company, etc.) to own your property is to protect yourself from personal liability, i.e. to provide asset protection. By forming a legal entity you are separating that legal entity from yourself, an individual.  This legal entity now has the legal right and power to make all the decisions that an individual could make, but with the added feature that the individual investor(s) are not personally liable for its actions. For example, if a legal issue arises out of the business being conducted by the legal entity, liability for its activities is limited to the assets of the company, i.e. your investment, as the claimant’s only recourse would be against the legal entity. 

 One very common legal entity that investors use for asset protection is a Limited Liability Company, aka LLC.  A Limited Liability Company provides considerable asset protection to members carrying on a business like property ownership. Members of the company do not have personal liability for the enterprise – absent a personal guaranty.  Instead, liability for company activities is limited to the assets of the company, i.e. a member’s investment.   An LLC also provides some protection from the judgment creditors of the individual limited members if a judgment is entered against the member after the creation of the company, and also protects the members as a result of the actions, or inactions, of another member by dictating the rights of a member’s creditor.

 When it comes to managing your single, multi family, REO, Second homes or commercial properties, rest easy – Octazon Management has got you covered and can protect your assets and take away your property management headaches and distractions through our full-service or back office property management services.

When providing management services to Realtors, Octazon will NOT provide the leasing, rentals or sales– so you never have to worry about losing control of your relationship with the owner. 

With Octazon, we bring order to residential property ownership.  Call us 888-324-9528 or email us at info@octazon.com . Check us out @ www.octazon.com 

THE BREAK IN – WHO’S RESPONSIBLE TO REPAIR OR REPLACE

If you manage or own a bunch of properties, it is likely that at some point you will receive a call from one of your multi-family tenants that someone busted a window or door and broke into their unit. The tenant will then request that the landlord fix their door or window or other burglary damages. What’s a landlord obligated to do in such a situation?


The answer is not so simple – and encroaches upon a gray area.

In general when a situation like this happens (an alleged crime is being reported by your tenant), ask the tenant if he/she filed a police report. If he/she says no – ask why not? If one was not filed it is suspect that some burglar really broke the door and window. Perhaps the tenant did and is making this up to have the landlord fix the problem.  Under FS 83.51(4), a tenant is responsible for any damage caused by the tenant, a member of the tenant’s family, or other person on the premises with the tenant’s consent.


If however the tenant did file a police report, ask for a copy.  If this tenant was truly a victim of a third party crime, it is quite possible the judge will allocate the repair responsibility to the landlord – despite language in the lease to the contrary.   When there is a criminal act involved, it is very challenging to predict how a judge will respond and you can’t simply rely on the language in the lease.


Therefore, if a police report was generated and the tenant is asking for the door/window to be repaired, the owner should get the door/window repaired ASAP and then later on figure out who will be responsible to pay.  


If the same situation occurred in a single family home or duplex and the lease allocated all repairs to the tenant, such a clause may hold up since these types of properties allow for the landlord to place greater burdens and obligations on the tenant.


When it comes to managing your single, multi family or commercial properties, rest easy – Octazon Management has got you covered and can take away your property management headaches and distractions. Our full-service property management company can handle everything from tenant and vendor management to maintenance and landscaping, to providing an up to date PDF strong LANDLORD lease prepared by an attorney (through Octazon Law), 3 day notices, eviction management, detailed financial reports and many other services through our advanced technology that allows us to stay connected and maintain transparency with our clients.

When providing management services to Realtors, Octazon will NOT provide the leasing, rentals or sales – so you never have to worry about losing control of your relationship with the owner. 

With Octazon, we bring order to residential property ownership.  Call us 888-324-9528 or email us at info@octazon.com . Check us out @ www.octazon.com