🏘️ Just Transferred Your Rental to an LLC? Here’s What to Do Next.
By Mike Massey Law, PLLC – Real Estate + Asset Protection Attorneys
So you’ve successfully deeded your rental property to your LLC—a smart move for liability protection. But you’re not done yet.
To avoid headaches down the road (and to preserve your asset protection), you’ll need to update a few important documents and policies. Here’s a quick checklist of what to do after the deed is recorded.
✅ 1. Update Your Property Insurance Policy
Once the LLC owns the property, the LLC must be listed as the named insured on your homeowner’s or landlord insurance policy.
Also:
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If your name is still on the mortgage, add yourself as an “additional insured” or “interested party”
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Make sure the coverage is appropriate for rental use, not personal residence
📌 Failure to update could result in a denied claim—especially if the insurer finds out after a fire, flood, or lawsuit.
✅ 2. Review or Update Your Title Insurance
Your existing title insurance policy is likely in your personal name. Some insurers offer an endorsement or assignment to carry it over to the LLC.
Ask your title company or real estate attorney:
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Can the policy be amended?
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Is a new title policy required for the LLC?
✅ 3. Amend or Redraft Your Lease Agreements
Your lease should now reflect the LLC as the landlord. Update:
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The landlord’s legal name
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Payment instructions (LLC’s bank account)
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Notices and contact info
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Security deposit clauses (held in LLC name)
If you’re using a property manager, make sure they have the updated lease template and the LLC’s entity documents on file.
✅ 4. Get an LLC Bank Account
Keep property finances completely separate. Use an LLC-only bank account for:
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Rent payments
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Repairs
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Mortgage (if still in your name, reimburse via formal process)
Mixing personal and LLC finances is a surefire way to lose liability protection in court (piercing the corporate veil).
💡 Bonus: Add the Property to Your Estate Plan
Now that your property is owned by an LLC, make sure your revocable living trust or succession plan reflects:
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Who inherits the LLC
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Who controls it if you pass away or become incapacitated
🗂️ In Summary: Post-Transfer To-Do List
✅ Update homeowner’s or landlord insurance
✅ Review or amend title insurance
✅ Update leases to reflect LLC ownership
✅ Open and use an LLC bank account
✅ Check city/county compliance rules
✅ Update your estate plan to include the LLC
📅 Need Help Finalizing Your Rental Transfer?
We help landlords and real estate investors in Texas every day—from deed prep to LLC formation to post-transfer cleanup.
📞 Book your free consultation today:
👉 https://mytxwills.com/book-a-meeting/
📜 Disclaimer
This blog post is for informational purposes only and does not constitute legal advice. Reading this post does not create an attorney-client relationship with Mike Massey Law, PLLC. Please consult a licensed attorney for personalized legal guidance.
