Separate LLCs buy real liability isolation at a real annual cost, and for a handful of properties one LLC covering all of them is often the more sensible structure. The case for one LLC per property: a claim tied to one property can't reach into the others. The case against is cost and paperwork. In California, for example, each LLC owes an annual franchise tax (the figure has been $800 per LLC per year; confirm the current amount), so five rentals in five separate entities runs several thousand dollars a year for protection you may rarely, if ever, actually draw on. Whatever structure you choose, the discipline that actually protects you is keeping the money separate: - Fund each entity properly from the start. - Keep a separate bank account per property or per LLC. - Never pay property expenses from a personal card. Commingling funds is how the liability shield gets pierced, no matter how many LLCs you own. Entity structure is a legal and tax question, so run your specific setup past an attorney and a CPA. This is not legal advice.