> Small mom-and-pop should be allowed to do many things that extremely wealthy landlords and/or corporations are not allowed to do.
The problem is, then you end up with structuring/smurfing. It's already a common thing in real estate to have one LLC per each building in a development to prevent creditors from clawing money back from the actual developer corporation/fund, no need to entice this even more.
Besides, small landlords already are notorious for egregious violations of regulations. Creating effectively two classes of renters doesn't solve the problem, at all.
There need to be greater transparency requirements around that, and legislation targeted at "beneficial owners", with ruinous penalties for any attempt to conceal beneficial ownership. Anything other than full disclosure of all beneficial ownership would mean that if it is discovered, the penalty is you will lose all the real estate you own.
The problem is, then you end up with structuring/smurfing. It's already a common thing in real estate to have one LLC per each building in a development to prevent creditors from clawing money back from the actual developer corporation/fund, no need to entice this even more.
Besides, small landlords already are notorious for egregious violations of regulations. Creating effectively two classes of renters doesn't solve the problem, at all.