What necessary skills that a rental property owner should be implementing to reduce the risk?
In facts, most of the landlords do face some risks on a daily basis such as legitimate, malicious lawsuits and frivolous. They can range from injuries from faulty appliances and rehab work to obsession by landlords, drug activities or tenant’s pets injured neighbors’ kids.
So how can a rental property owner protect their assets and other streams of income from these problems?
1.Perform Quality Work & Inspections
Do remember always to check whether the renovation and repair work is done perfectly. A few issues such as faulty wires on washing machine or cold and hot water piping switched incorrect way can be takes to do real harm and out yourself in trouble.
2. Get Good Insurance for your Property
Don’t think that house insurance is not a big deal, but when some problems happened into your property, you will be glad you have it. The basic property insurance is coverage for fire, however, this fire insurance is not enough to gives you a protection. If you need a full protection against explosion, natural disaster such as flood, earthquake and other possible risk, you’ll need to invest in good property insurance as well. (Click here to read more about property insurance). And you should collect part of the insurance fees from the tenant as well because this is usually very inexpensive for them. Besides, you should always check whether the insurance is renewed on time.
3. Keep All The Records
That can be inspection reports, receipts, maintenance requests from tenants and more. It can protect yourself from any case because you can show them the evidence. If you want to go paperless, it is good to upload every receipts or reports into whichever property management software that you use.
4. Be Acquainted With Real Estate Attorney
If you are in property investment long enough, the chance are that one day you will need to be acquainted with real estate attorney as you can call on an attorney or ask them to write a warning letter for you. This is always more efficient if you have already picked a good one and have them on retainer.
5. Be Smart To Use Professional Services
Property agents and third party property management companies can offer an excellent buffer from liability. They physically limit landlords from making legal mistakes and then always have to take on the expensive costs of legal representation or make claims on their insurance issues (if there is any error is made).
6. Protect Your Privacy
In order to not putting yourself out there as any easy target, it is advisable to using your business address instead of your home, or investing through a partnership to protect your identity, separate business and personal assets and become a less attractive target.
Dear all the landlord, how do you protect yourself and your businesses? Comment below to share your thoughts or experiences with us.