My tenant is preparing for a lawsuit against me, what do I do

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Guest: Recently, my tenant told me that she found mould in the house.

Justin: Okay.

Guest: And that her son, Her son was sick. Okay. So I think that that they’re kind of setting me up for a lawsuit

Justin: probably.

Guest: And uh, yeah. So, uh, I have an LLC, but it’s not properly done.

Justin: Okay.

Guest: And, and I like to know what I need to do to be proactive.

Justin: Yeah. Well we’d like to see a take a look at it and you’ll probably have you had anybody out there to go take a look at this and see if they can confirm the mould or see if it’s actually – mean there’s, there’s mold, there’s good mold, there’s bad mold and there’s mould that doesn’t do anything. So, uh, have you had anybody out there to take a look at the mold issue that she’s claiming her tenants claiming?

Guest: Well, I, um, she called me like maybe every two months saying something’s wrong with the plumbing, plumbing. I’ve sent a plumber out maybe every two months. Okay. Nobody’s seen any mould, but, uh, I, you know, I don’t know if a plumber, can you pick it up?

Justin: Yeah. You probably don’t want to have a plumber out there. Do any, you want to have somebody who specializes in mold and can actually make a determination or give you a report, right?

Mark: Yeah. You definitely want to keep track of how often you’re sending Plumbers out and make sure you keep copies of their bills. But if you have an LLC, I don’t quite understand. If it’s not formatted correctly, it could be entirely useless and they could go after you personally. Secondly, do you have insurance?

Guest: Yes, I do.

Justin: Okay,

Mark: so you have, you have landlord tenant, you have insurance on the rental property or an umbrella policy or something. Okay. Okay. Well that’s good to know.

Justin: Yeah, that the, I mean that, that’s good. Why do you think the LLC isn’t, isn’t set up properly or what’s what’s given you concern?

Guest: Uh, well, you know, you only way I had it set up, but I didn’t, you know, each year I didn’t put it in, what I should. I just paid for it.

Justin: Okay. Well, I mean that we might need to draft up an operating agreement. And um, you just say, you know, like you didn’t do at your meetings or what do you, what do you think you needed to do

Guest: after you have it set up a, I think yearly you’re supposed to add in your account. Is that right?

Mark: not neccesarily- you’re supposed to- Well you definitely have to update your filing fee every year. There’s things you do have to do, but

Justin: it’s kind of a pretty much runs itself. So you know what, if you give me a call on Monday, we’ll, we’ll definitely take a look at it for you and tell you if there’s anything to worry about and make a recommendation for you, for a mold guy to maybe come out there and take a look just to try to head off any of her problems. Cause if you can get a report that says there’s nothing wrong with it, that’s going to help prevent any kind of problems from her being able to sue you, she can sue you. But it wouldn’t, it wouldn’t go very well for if you have report that you sent someone out there to remediate it and they found nothing. So give me a call on Monday on the same number you called today and, uh, we’ll, we’ll go over what your LLC looks like and, uh, get you in contact with them. Old Guy. Okay.