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Property Management
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How Can You Make Rental Property Insurance More Affordable?
Shopping around for coverage is an important way of determining which rental property insurance policy is most affordable. In addition, do the following:
• Look for Bundled Discounts. If the property owner has a number of properties or already has homeowners and auto insurance policies with a particular insurer, find out if bundling the rental property insurance policy with other existing coverage will result in a discounted rate on the premiums.
• Ask About Safety and Security Upgrades. Upgraded fire, flood, or security features may result in a discounted rate on rental property insurance. Be sure to compare the cost of the upgrade with the potential savings and find out what documentation is required by the insurance company to qualify for the discount.
• Don’t Over-Insure Your Property. Make sure that you carefully review the policy limits and compare to the current property valuation in order to ensure that the amount of coverage is appropriate for the property in question.
• Look for Carriers Who Offer Flexible Options. Many rental property insurance carriers offer a variety of flexible options, allowing you to customize coverage so that you don’t overpay. It may make more sense to purchase a basic policy with add-ons rather than an expensive comprehensive policy that offers coverage you don’t require.
• Require Tenants to Carry Renters’ Insurance. While there are many aspects of rental property insurance that are unique to that type of policy, others may be duplicated by renters’ insurance policies. By making sure that all of your tenants are purchasing and maintaining renters’ insurance and checking that their coverage is being renewed on a regular basis, you can pass some of your coverage needs on to the tenant.
What Can You Do to Prevent Property Damage, Accidents, and Injury Before They Occur?
The best defense is a good offense, and this is just as true when it comes to protecting the property you manage. While it is important to carry appropriate insurance coverage, there are many steps you can take to protect and preserve the value of a property so that, ideally, you never have to make a claim.
Consistent property maintenance is one of the most
important ways to protect the value and condition of the rental property. While the tenant will no doubt be in charge of many of the maintenance and upkeep requirements associated with the property, the property owner may wish to pay for regular system maintenance in order to keep everything working at peak efficiency and head off problems before they occur. Use the time between tenants as an opportunity to thoroughly inspect the property and check for deferred maintenance and other potential problems. Make repairs and upgrades on a consistent basis to prevent damage from outdated systems or fixtures.
Consider paying for regularly scheduled maintenance like lawn care or pool maintenance. Unraked leaves can cause mold, mildew and water damage or present a slip and fall hazard. Improper pool maintenance can result in significant structural damage. When in doubt, you may save money in the long run by taking more responsibility for property upkeep. Consult with an attorney to determine how to structure your lease in order to limit the personal liability of the property owner. This would also be a good time to discuss what type of ownership structure will provide the best protection for the owner’s assets.
Consider requiring renters’ insurance from your tenants in order to provide an additional layer of protection against liability from accident or damage. It is important to implement a system for checking in regularly with tenants for verification of ongoing renters’ insurance coverage. You can help tenants to understand the advantages of renters insurance and obtain adequate coverage -- and Rent Spree can help. That’s why we’ve partnered with Sure to provide a fast and efficient renters insurance process for you to share with your renters. They can take advantage of on-demand quotes and easy sign-up for renters insurance policies. You’ll then be able to check for ongoing coverage right from the RentSpree dashboard, providing you with maximum convenience and reliability.
As a rental property owner or property manager, you should understand your coverage options. By researching insurance carriers and available policies, you can stay informed and up to date on the ways to better protect the value of the property you own and/or manage.
RentSpree is the preferred, online tenant screening provider of the Apartment Association of Greater Los Angeles. With it, you can put together a completed application package in one simple step. This includes a completed rental application, credit report and score, criminal background check, and national eviction history. RentSpree can handle the entire screening process for you and it takes just two minutes to start screening! Better yet, you can receive all reports back instantly at the property or at another time of your choosing. Visit https://aagla. rentspree.com to learn more.
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