Managing in Rental Property Starts with Insurance
Should you choose to rent your property there are important concerns that are applicable whether you handle the management on your own, or if you have a professional property manager as- sist you. We all know about “location, loca- tion, location”. These are three great reasons to think about purchasing a property. And, because we live in Coronado, those three reasons are all “checked”. When considering a rental, we have three more for you: insure, in- sure, insure! •
Insure – with insurance! Your
homeowner’s insurance is a very im- portant aspect of your rental. Check with your insurance company and find out what it takes to properly cover your property for use as a rental. They’ll ask you some good questions about whether
it will be a long term rental, a vacation rental, if it is furnished, if you’ll be al- lowing pets or smoking, if there’s a pool, trampoline – the list can be quite long! Investigating this now, before you place your “for rent” sign, is very impor- tant. Check to see what the deductible is, and what is covered and not cov- ered. Spend a little time thinking about your liability limits. There are a variety of options and amounts. You might want to check with your financial advisor/ planner to consider this. It’s not the little lawsuit that will affect you – it’s the BIG one! Make sure you discuss insurance with your tenant – let them know that your insurance doesn’t cover their per- sonal items. You’ll want to advise your tenants to carry renter’s insurance. •
Insure – regarding safety! Be Proactive – not Reactive! Make sure
your house is safe. Take a walk around the property and view it from a renter’s perspective. We get so familiar with our homes that we overlook items because we know about that rickety fence or that crack in the walkway. Clear your vision and look at the property with a new fo- cus. Make sure the fence is solid, look at cracks, check stairs, and think about electrical and plumbing issues you’ve put off because you know how to live with these minor nuisances. Look for things that might be safety concerns to others. Smoke detectors (and in some cases carbon monoxide detectors) are re- quired! Pro-activity is the best form of insurance when it comes to safety. •
Insure – legally! Make sure you’re covering yourself legally and that you’re using a bona fide lease agree- ment. Many folks think that a handshake will take care of things. Having a great contract will help you and your tenant (Remax, Continued on next page)
Francine Howard & Nancy Parrett
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