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- Landlords should transfer their rental property into an LLC if they can
- The deciding factor is whether or not the property is subject to a mortgage
- If the property is not subject to a mortgage, then definitely transfer it to an LLC to avoid liability from renters
- If the property is subject to a mortgage, the mortgage lender must give permission to transfer it to an LLC
- Often their answer is no. In some cases they will agree, but may raise your interest rate
- If you still want to transfer your property under mortgage to an LLC, you need to consider the economic ramifications of an increased interest rate.
- In any case, discuss this matter with an experienced New Jersey business attorney.