Does renting my property to a SPV avoid liability?

by Readers Question

8:37 AM, 23rd March 2017
About 2 years ago

Does renting my property to a SPV avoid liability?

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Does renting my property to a SPV avoid liability?

I believe that by letting out properties in my own name I am potentially subject to unlimited liability lawsuits from tenants (apparently very unlikely but not impossible).

Would I be able to restrict the limit of my liability by renting out my property to a SPV (Single Purpose Vehicle limited company) for market rent. The SPV can then go and rent this property out and enter into an agreement with the tenants.

That way God forbid if any thing goes wrong the tenant will sue the SPV and not me.

I am not a dodgy landlord. I regularly inspect all properties and get the relevant gas and electric checks done. I just want to be on the safe side.

Any lawyers here who can shed light on this or any other landlords who have done something similar?

Many thanks

Shehreyar



Comments

Neil Patterson

8:44 AM, 23rd March 2017
About 2 years ago

Are you perhaps considering rent to rent?

Please see >> https://www.property118.com/?s=rent+to+rent&submit=Search+Articles

and >> https://www.property118.com/guaranteed-rent-to-rent-lease-contract-template-download/41817/

However basic Landlords insurance will cover Public Liability for unlikely but large injury claims.


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