If you're not in a community-property state, it's more likely than not that you are in an ice storm right now.  If someone slips and falls on the rental's sidewalk, it's just not the LLC that gets sued, it's the individual owners, because why not?  Especially because it's financed by a mortgage just in their names.  But they will have nothing to worry about if they have adequate insurance coverage, same as if they had no LLC.  If they don't have insurance (to pay the legal fees, if not the claim) they will have learned that an LLC provides a false sense of security.  Do they have an umbrella policy, or even know what that is?