5 Ways Landlords Can Protect Their Properties

To a property owner, the safety of a tenant in a rental property is paramount. Equally important is securing the protection of the rental property to ensure longtime profit from it, increase its rental value, and avoid damages and other risks.

Owning rental properties are profitable personal assets that come with risks such as those produced by the rental property itself. For instance, as a property owner, the law holds you accountable for personal injuries incurred by a tenant within the rental property. Outside risks also come into play when your equity as a property owner is threatened by lawsuits, which could affect your real estate property investment.

This is why protection strategies for rental properties exist in the form of landlord insurance, rental agreement, or lease agreement, to protect business and personal assets from creditor claims. It is a must for property owners to educate themselves and use a combination of these property protection ways to limit risks in a single property asset.

It is recommended that property investors or landlords have a go-to legal advisor and finance expert to discuss crucial matters such as local laws, legal requirements, and legal expenses entailed in developing a rental property protection plan.

Here are basic strategies to put in place in order to protect your real estate property investment:


1. Prioritize safety

Prioritizing the safety of your current and prospective tenant is the best way to avoid a lawsuit or insurance claims for an injury incurred on your rental properties. It's best to be aware of the basic legal requirements for repairing and maintaining the property. When repair requests are reported by tenants, promptly respond at once. Initially address hazards such as molds, asbestos-containing materials, carbon dioxide, and lead. Install carbon monoxide detectors, maintain HVAC systems, and leaks immediately.


2. Hire a property manager

Investors who are handling several rental properties or who do not live near their rental should consider seeking the help of a property manager. Having an official point person can help with concerns on property maintenance, security, and sorting out an problems that an investor might not be able to address at once. Spot checks on the property can be done regularly by property managers to ensure that the rental is in good condition.


3. Hold tenants accountable by requiring security deposits

Requiring a security deposit from a tenant motivates them to keep a property in perfect condition. This deposit is made by tenants to secure the payment of rent and utilities. The said security deposit can also be used to repair damage if your rental agreement directly states it. Having a damage deposit ensures funds for the repair and replace of damaged assets beyond reasonable wear and tear.


4. Screen tenants before signing a lease agreement

Landlords can avoid irresponsible tenants by doing a background check on them prior to doing business with them. Setting an interview with interested applicants or asking for character references from employers will give you a chance to decide if you can trust or refuse them.


5. Get the right rental property insurance

Reduce the risk of unprecedented costs by taking out the right insurance policy for your specific needs. The best rental property coverage should be able to protect you as the landlord and your property assets, including furnishings within the rental property. Rental property insurance or landlord insurance should be able to offer the following:
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• Liability coverage should be able to protect the landlord if someone on the property gets injured and takes legal action. Potential costs could include bodily injury and emotional distress claims, medical bills, loss of income due to injury, funeral costs, and legal and court fees.
• Property damage covers repairs after damage has been done to the rental property and any damage inflicted by fire, natural disaster, or theft. This also covers the personal assets or equipment of the landlord such as landscaping equipment or power tools.
• Loss of rental income protection covers rent not received when a tenant moves or relocates when a damaged property is undergoing repairs.

Running your own rental business comes with risks but they can be avoidable if you are aware of each and use strategies to ensure the protection of your real estate investment. Good risk management habits is key to seeing past the potential liabilities before they strike. Knowing which tools can certainly mitigate insurance claims and lawsuits.