The reasons mentioned are accurate; record keeping, limit liability, tax benefits, financing.

Charlie,

If it's a vacation rental it could be for business reasons such as multiple properties, tax advantages, personal liability (injuries to people staying at property) etc…

Having said that I’ve seen 2nd home buyers and investors set up an LLC to help shield also.

Again the best advice I give anyone, 2nd home buyer or investor, is to contact an attorney or accountant on the legalities, tax breaks issues etc… I've done this on many rental properties all over Central Florida including the Kissimmee area for customers all over the world.

There's a Trucking company that bought an older motel, refurbished it to be used by drivers and company staff only for vacations.

Dave Lowe
Broker / e-PRO

Sometimes it's done for asset protection. Or, if the second home is being used for company purposes (let's say it's used to entertain clients), there can be tax advantages.

In any case, check with a CPA on the tax implications. And, if necessary, check with a lawyer regarding asset protection.

Hope that helps.

Charlie,

Could you clarify your question?

Hello Charlie,

Most of the people I work with buy properties to rent out to vacationers.
For some it's to keep the records and expenditures together just for investment properties.

I would suggest you speak with an attorney to ask these questions and see what options maybe available or best suited to your situation.