The property market is hot, particularly for those who are looking to invest in their own or their family’s futures. Buying a building or converting your home to contain flats to rent out will not only ensure that you have a consistent income throughout your retirement, but the monthly rent can also either offset costs or it can give your family a nice boost to your monthly budget. When you have this passive income, you have a lot of options. These options range from furthering your property portfolio to even simply going on holiday more often. With that in mind, costs can be huge when things break, fires start, or other natural disasters hit your property. That is why you need to compare landlord insurance quotes to find adequate level of cover for your property.
Before you put your property up for rental listing, however, there are a few things you need to do first. First-time landlords need to have all the legal aspects sorted beforehand in order to work above the law. You need to also be aware of your responsibilities, the market your property will be entering, whether your property is fit to rent, knowing how you will manage your property, and get adequate insurance.
There are many responsibilities you must take on as a landlord. You need to provide a safe place that is free of health hazards, is up to code, and has been professionally inspected beforehand. You will want to ensure that all aspects of your property have been recently serviced and are up to date. If you hire a managing company, of course, they will take care of this for you, and send for new inspections regularly to keep everything up to the correct standards and will notify you if something needs to be fixed or replaced.
Having insurance can help protect your investment and your tenants. Your insurance will cover the number of rooms in your property, property type, and the maximum number of tenants you will be renting it out to and for how long. You will also need to consider content insurance for your belongings. Renting out a furnished property can fetch you a higher rent, but that furniture will have to be covered.
The more comprehensive your insurance coverage, the better, because you want your investment protected from fires, water damage, break-ins, thefts, and so much more. If you know what is and isn’t covered, you can better prepare your budget.
It is also important to ensure your tenants adhere to your insurance policy. Subletting can completely invalidate your insurance, after all, meaning not only do you have non-vetted tenants living in your property, but you also have to worry about not having the coverage needed in case anything breaks.
Being a first-time landlord can be scary, but the benefits are huge. Make sure that your property is safe, that you have adequate insurance to protect your investment, and that you read through this infographic and complete the landlord checklist as soon as possible: