Before establishing your LLC, contact your lender if you have a mortgage on the rental property. Let them know that you plan to create an LLC as part of managing it. Most residential mortgages possess "due on sale" clauses which forbid transferring ownership without consent from the lender in writing. Buying out your mortgage may be a wise decision for you, as it would make title transfer to your LLC much easier. However, if this is not an option for you, transferring the property still remains feasible - although keep in mind that closing costs and higher interest rates could become involved. We suggest consulting with a lawyer from your region; they should be able to advise on the best way forward towards protecting yourself against liability risks depending on whether or not the original purchase was made as residential or commercial property.