You should put your VRBO and Airbnb rental property in an LLC

Attorney Tom Olsen: Chris, we get this question on a regular basis. Let's just start something with something that's absolute. If you have a rental property that is a VRBO, Airbnb, people coming in and out of every few days, absolutely, positively, no ifs, ands, and buts, you should put it in an LLC. There is so much potential liability there.

Attorney Chris Merrill: Correct.

Attorney Tom Olsen: If you have rental properties that are one-year lease properties, we're on the fence with that, and LLC is not the be-all-end-all. It's expensive to maintain. There's plenty of cons against it. Generally, as a general rule, if you've got one-year rental properties, our standard answer is, your best defense is to be well insured, including having an umbrella policy. If you've accumulated wealth, whether it's cash in the bank, or whether there's equity, and rental properties, your best defense is to be well insured, including having an umbrella policy.