As a property manager, you offer your tenants a decent place to live for a fair price. However, building maintenance and legal fees can get expensive when things don't work out like you imagined. How can you give yourself and your tenants peace of mind at all times- require them to purchase renter's insurance. It is very inexpensive and offers the property owner and the tenant financial and legal security in case a disaster happens.
Here are VerticalRent’s Top 10 reasons landlords should require renter's insurance:
- Renters insurance lessens the threat of you being hauled to court for a lawsuit if damage occurs to the tenants property, vehicle, or physical being. Unless the damage occurs entirely because of the property owners actions, tenant renter insurance will cover damages and loss.
- It also protects you in case a third-party is injured while visiting your tenant. An inexpensive $100,000 liability policy will cover the tenants and any visitors to their property who happen to be involved in a physical injury or altercation.
- Renter's insurance absolves you from financial responsibility to property damage after a fire. The tenant cannot ask you to replace their smoke or fire damaged items. They simply file a report with their insurance company.
- Damage occurring from a flood, earthquake, or other natural disaster will also be covered by the renter's insurance policy. This damage occurred through no fault of the property owner so the property owner has no liability for replacing damaged items.
- Vehicle damage in common parking areas or tenant issued carports is not the responsibility of property owners. A combination of automobile insurance and tenant insurance will take care of any claims.
- Rental insurance is a must for any tenant who moves in with a pet. Bites, scratches, and property damage by pets can happen unexpectedly. The property owner could be held responsible if the tenant does not have liability insurance. For pet owning tenants, require a minimum of $100,000 in liability insurance specifically covering pet attacks.
- It requires renters to take care of the property. Knowing that any damage that occurs is the financial responsibility of the tenant and/or their insurance company helps encourage people to keep the property clean and maintained.
- It helps weed out potential bad tenants. If somebody is not willing to take out a renter's insurance policy, are they serious about wanting a long-term lease with your property management group?
- Rental insurance is very inexpensive and easy to obtain. You can require renters to obtain it by adding an addendum to the lease.
- It provides the property owner with peace of mind. You won't have to worry about people tearing up the place, moving out, and leaving you with thousands of dollars in repairs. Relationships with tenants can be greatly improved when there is no 'blame game' taking place.
- We hope this list has been helpful to you. As a property owner, you have enough to worry about without dealing with tenant problems. We offer services for property owners to help you find the best tenants for your building. For help screening your potential renters, contact us. We offer background checks, credit screenings, and online rent payment programs.