Education and news for smart DIY landlords!
No matter how we try to convey the importance of something to our tenants, they may not treat it as a priority - until problems happen.
One of the things that landlords ought to specify in the lease agreement is renter’s insurance. Tenants should carry this insurance policy as it ensures coverage in case their belongings get lost or damaged.
Unfortunately, many tenants put off getting renter’s insurance because they think it’s a waste of money or that they are overconfident that nothing can possibly go wrong with their belongings. Who would anticipate a fire or robbery anyway?
You as a landlord also benefit in many ways from this insurance policy. Requiring your tenants to have it will not only protect them, but your business as well.
Without renter’s insurance, you can just imagine the stress and expense of being sued by a tenant who blames you because his laptop went missing. Avoiding the threat of a lawsuit can be done by simply requiring a renter to purchase a renter’s insurance.
If, in the screening process, a tenant applicant tells you that he does not have the money to pay for renter’s insurance, consider this a warning. This gives you an idea that the tenant may not be able to pay rent on time and consistently, and that you’ll be setting yourself up for failure.
Read More: Top Tips for a Successful Tenant Screening Process
Are you looking to retain tenants for many years to come? If so, a good working relationship is more than necessary. Positive relationships can spell a big difference between talking things out and a lawsuit. Requiring tenants to get renter’s insurance helps prevent a lot of disagreements especially if the loss is major.
Read More: Communication: The Key to a Healthy Landlord-Tenant Relationship
As a landlord, there’s nothing that satisfies us more than to get the most out of our investments. You can charge a higher rent, rent out storage space, or make some upgrades. Rarely do we realize that renter’s insurance also increases profitability since you won’t have to be held liable for anything that happens to your tenant’s belongings.
All of these advantages of requiring tenants to get renter’s insurance helps you sleep better at night. You have a ton of responsibilities on your plate already, and as much as possible do away with issues that are avoidable.
At the end of the day, we cannot control whether a tenant decides to get renter’s insurance or not. Some tenants are in favor of this insurance policy while to others, this requirement can be controversial. They may feel that it’s an additional expense and therefore a burden.
The best way to encourage tenants is to communicate the benefits of renter’s insurance clearly. Give examples of scenarios that allow them to understand that at the end of the day, this insurance policy will save them effort, time, and money.
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Finally, I offer you the opportunity to take a complete DIY landlording course: Landlord Prep: Video E-Course and How-To Tutorials. Everything you need to know to become not just a landlord, but a successful landlord, is here.