TRUST VS PARTNERSHIP VS COMPANY VS LTC FOR RENTAL PROPERTY
Trust vs Partnership vs Company vs LTC for rental property: Which structure is best? Each has its advantages and disadvantages. Although not exhaustive, we hope that this chart will give you an overview of the four most commonly-used structures and their pros and cons.
Note that some partnership agreements do allow annual changes in distribution of income or losses; check the wording of your agreement if you’re not sure. Note also that in the case of rental property owned by individuals, income or loss can only be unevenly distributed if this is what is on the title. A partnership agreement doesn’t override what’s on the title with regards to distributions if it is rental residential income, both short-stay and long-stay.
We hope that this has helped a little when comparing Trust vs Partnership vs Company vs LTC for rental property and trying to work out which is best. Please be sure to check out our other articles which discuss these in more depth, such as:
- TRUST VS LTC FOR RESIDENTIAL INVESTMENT PROPERTY
- SHOULD YOU FORM AN LTC TO OWN YOUR RENTAL INVESTMENT PROPERTY? and
- RENTAL INVESTMENT PROPERTIES & LTCS – A GOOD MATCH?
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