Imagine you’ve just inherited your childhood home, a modest property in a quiet neighborhood not far from where you live now. While it may be a great house, you don’t wish to move there but you’d like to keep it for its income potential and possible tax deductions. You’re able to do some of the simple maintenance and upgrades yourself. Sounds simple, right? Well, not always. There is a lot to learn before becoming a landlord.
What do I need to know before becoming a first-time landlord?
For starters, you will need a tax advisor, an attorney and a trusted independent insurance agent.
Where do I find a rental contract?
There are many websites that offer templates for a rental agreement, but it’s important, especially for new landlords, to seek out a qualified attorney who can make sure the agreement covers your best interests. For example, there must be a requirement that the tenant purchases and maintains rental insurance to cover their belongings.
What kind of insurance do I need?
Tenant occupied insurance is a must for any landlord. There are many more complexities in insuring a rental property than your owner-occupied primary residence.
Insurance for Tenant-Occupied Dwellings in Denver
Your rental property is an important investment and a regular source of income, and it is critical to protect your property against any potential risks. The best way to do this is to find an independent insurance agency like the top-rated Noel Selewski Agency that can source the best coverage for you that is affordable and meets your needs.
Types of Coverage
As a landlord, whether you have one single family investment property or multiple apartment buildings, there are many types of tenant occupied insurance available in Denver. There is no single solution for every landlord’s unique situation, and it’s important to choose a top-rated insurance company to partner with that has your best interests at heart.
Tenant occupied insurance policies recommended by the Noel Selewski Agency in Denver begin with a comprehensive package including physical structure property insurance and general liability.
Physical structure property coverage: This type of coverage protects you in case of damage to the building’s basic structure, such as the foundation, roof and walls. This type of coverage may also include detached structures on the property, like garages and maintenance buildings. This insurance will compensate you for the cost of any repairs necessitated by damage from snow, hail, wind, fire, or vandalism.
General liability: This is to protect you in case of potential lawsuits if a tenant is injured on the property. Liability coverage can help pay medical expenses and legal costs when a tenant sustains an injury. Typically, this type of coverage doesn’t cover everyday accidents of tenants, such as a tenant falling or slipping in his or her bathroom. But if a leaky roof causes a tenant to slip and fall, liability coverage may pay medical costs and legal bills.
You may also purchase additional endorsements to add to your policy for other types of losses, including loss of rent and personal property insurance.
Loss of rent: This coverage is for compensation to you for any potential lost income while your property is being repaired due to damages that require your tenant to temporarily move out of the property.
Personal property coverage: Standard rental property insurance doesn’t cover theft of or damage to items such as lawn equipment and office equipment used by the owner in the management of a rental property. However, by adding a personal property endorsement, the landlord may be able to protect all types of personal items. This type of endorsement may also cover appliances included in rental units.
How to find great renters
After obtaining the right level of tenant occupied insurance, the difference between a stress-free, financially lucrative experience and a disastrous, costly one lies in choosing the right tenants in the first place. Here are a few tips for finding the right tenants for your property:
Be sure to familiarize yourself with the Fair Housing Rules and do not make decisions based on race, religion, gender, or disability. It’s not only the law, it’s the right thing to do.
Get references and check them
It may sound tedious, but when you are down to two or three top candidates, it is definitely worth it to contact at least their last two landlords, their employer, and personal references.
Background checks are a must
There are numerous options for background checks, and they will show you if the information on their rental application matches the state’s records.
Require a large deposit
Some landlords learn this the hard way. Be smart and require a substantial deposit that will actually cover damages in case your new tenant turns out to be a poor choice.
Contact a trusted insurance partner
It’s important to educate yourself on what you need to know as a first-time landlord. And remember, you can get more information and advice from the Noel Selewski Agency in Denver. As a trusted partner, we have the experience in tenant occupied insurance to protect your investment and help with any bumps along the road.
Talk to one of our independent agents today about the best property insurance for you: