Sublease Issue
I own a three-family home. Suppose I lease the house to an S-Corp, which then leases the units to tenants. Of course, third parties who tripped and fell on the sidewalks, etc., could still sue me. But it seems to me I'd be gaining protection from the claims of my tenants (e.g., security deposit claims, failure to make repairs, etc.) at essentially no cost, except the cost (low in my jurisdiction) of setting up the corporation. Moreover, it doesn't seem this would activate the "due on sale" clause of my mortgage. Is there any reason this doesn't make sense?
Thanks.
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