Renters insurance is great for any tenant to have—and can potentially ease any problems caused by fire, flood, or theft to your Converse TX investment property.
While renters insurance won’t cover the cost of your repairs, it will cover your tenant’s property should anything go wrong. You care about your tenants—and no one wants to see them lose everything that they own. So the question arises: should you make renters insurance mandatory? The short answer is yes; let’s look into it more closely.
Why Require Renters Insurance?
Renters insurance protects both the tenant and the landlord from financial loss due to circumstances that may happen unexpectedly to the property; this is a fantastic asset for tenants! We know that renters insurance covers the tenant’s valuables—but what does renters insurance do for the landlord?
If the worst happens, and your tenant is unable to continue living in your property, some forms of insurance will even cover the cost of a temporary living situation for your tenant. This will give you time to repair the damage to the property without worrying about what to do with respect to your tenant’s housing needs. Though you may be out a tenant while the repairs are being done, your tenant may decide to return once the repairs are complete. This way, you won’t have to look for a new tenant to take over the lease.
In the case of an injury on the property, renters insurance will shield the landlord from any possible liability. The tenant will not look to the landlord to pay for the medical expenses, as they will utilize their insurance to cover these costs. However, this advantage is only available to tenants who choose the right insurance policy.
Know the Law
It is not legal for a landlord to require tenants to have renters insurance in Texas. This applies to any tenant that is currently residing in one of the landlord’s units.
However, it is legal to make renters insurance a provision in the lease. When the lease is signed, both parties agree on the utilization of some form of renters insurance. This way, the tenant will be required to maintain renters insurance or risk violating the lease agreement.
Low-Cost Peace of Mind
For landlords, renters insurance means peace of mind. Renters insurance costs the landlord nothing—and keeps any liability out of their hands. Whatever may happen to your property—whether it be a fire, storm damage, or theft—you know that your tenant will be covered, and your property protected from the possibility of a lawsuit resulting from any of these unfortunate events. There is no downside to requiring renters insurance from your tenants through your lease.
For the tenant, renters insurance protects them and their property from multiple “named perils” that might occur. If a fire breaks out, the tenant will have peace of mind knowing that they will be able to recoup their losses through their insurance. Some renters insurance will even help the tenant with a place to stay should they become displaced by any incident that may occur at your Converse investment property.
Most renters insurance has a very low monthly payment to boot, so it doesn’t put a dent in the finances of your tenants. Any tenant who values their belongings will understand and set up their insurance. However, not all insurance coverage is equal: specific forms of renters insurance exclude coverage for damage from catastrophic events—like flooding.
The cost of renters insurance is minimal, and its benefits are enormous! If you are concerned about losing out on potential tenants due to this requirement, keep in mind that any tenant who doesn’t care about their belongings may not be the right tenant for you. A tenant who carries renters insurance is likely to be a better, more responsible tenant than one who does not. The low cost of renters insurance adds very little to your tenants’ expenses—but provides massive benefits.
Have a Property Manager Take Over!
Hiring an expert property manager in Converse is a great way to take all the pressure of owning investment property off your shoulders—especially if you plan to add more! A property manager will not only fill your vacancies and handle rent collection, but they will also work with you to decide whether or not renters insurance should be a stipulation of your lease. A Converse property manager can oversee all aspects of your growing real estate portfolio while you direct your time towards gaining more holdings.
Real Property Management Campanas is here for all of your questions about any aspect of the landlord experience. Our professionals know how much effort goes into running an investment property business, and their wisdom will help you succeed in growing your long-term wealth.
If you are interested in having your property managed by Real Property Management Campanas, have more questions, or just want to speak to one of our team members, then contact us online or call us directly at (210) 314-1039 today!
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