What is a Rental Property Land Trust

Rental property land trust is an association formed by real estate investors and property owners. The association or the land trust is the owner of all the properties. In other words, it is the trust that owns the title of the properties whilst in reality it is the landlord or investors that own the properties.

Explanation of Rental Property Land Trust

A rental property land trust is a tool for investors and property owners which can offer numerous advantages. In common perception, a rental property land trust is ideal for people who own multiple rental properties, but that is not entirely an accurate assessment. Even if a landlord owns one property, it would be helpful to own the property through a land trust.

Benefits of Property Land Trust

The benefits of rental property land trust are similar to how a business owner or entrepreneur can be benefited if he or she has a limited liability company or a corporation instead of a sole proprietorship or partnership. The primary purpose of a rental property land trust is to protect the individual landlord from all the challenges that come with ownership. It is the trust that would be the front or the owners of those properties for public to know. Landlords or investors would derive all the profits and rewards of their investments but if there are any lawsuits or other legal proceedings against the owners of the property then it would be the trust and not the owners individually.

How it Works

A rental property land trust separates the entity of ownership of the properties from the private entity as in the investor or the landlord. A rental property land trust ensures privacy for the owners because the ownership details would be that of the trust. Investors or landlords would not have their personal details flashed onto the public domain. No one can file any cases against an individual. All cases must be against the trust. This helps landlords or investors to protect their personal assets since only the assets of the trust would come into consideration.

Managing properties that are under a rental property land trust is much simpler than properties being directly owned by a landlord or investor and being listed in their names. From IRS proceedings to disgruntled employees or past tenants getting back to square off with the landlords or investors, there is a lot of preventive cover for individuals if their ownership is through a rental property land trust.
Posted on Mar 24, 2014


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