By hiring a property management company to look after your property you are saving yourself time, money and sanity in the long run.
Let me explain.
You are renting out your property for one reason. To make money. And it can become expensive to manage your property alone. When you choose not to hire a property management company you may make mistakes that they know not to make. This can include mistakes when approving tenants, wasting time completing tasks that property management companies are trained to do and you will probably end up paying separate people to do jobs that are all already included when you hire a property management company. All of these factors ultimately mean you will be paying more out of pocket in the long run.
Renting out your own property can also take a lot of your personal time. Even more so if you are having to learn the ins and outs of property management at the same time. Not to mention your tenants could call you at any moment with questions and work orders and before you know it your whole weekend is gone. Let a property management company deal with the every day stresses that residents can bring on.
A major part of finding good tenants for your property is to have a good screening process in place. Screening a potential tenant entails more than you may think! You will need to preform credit checks, Look at the rental history, employment history and much more!
Are you saying “ok I can handle all that myself!”? Well, you may want to think again because a property management company will also have many years of experience. Plus, a whole team taking on different tasks to make the property run smoothly. They will know the law and know how to make the most money that will back into your pocket!
So yes, a property management company is SO worth it! Stop managing your own property. Let us help! Contact us today so we can tell you all about what we can do for YOU! All County property management (817)567-2500
Types of rental property insurance
1. Standard Home Owner’s Insurance
2. Landlord Insurance
3. Vacation Rental Insurance
Standard Home Owner’s Insurance protects your home and property against damage or loss due to a covered claim. Also this will provide liability coverage to protect you from legal repercussions in the event someone is injured in the home.
Landlord Insurance offers all the same protection as home owners’ insurance along with a few extras such as
• Provides $1m or more in liability coverage
• Covers legal cost in the event of a lawsuit
• Protects government regulation related lawsuits
• Protects from tenants who damage the property
• Provides loss of rental income if the property becomes uninhabited
The down sides are you will pay more for this coverage compared to the basic home owners insurance. Roughly 25% more.
Things that are not covered by the landlord insurance policy:
• Your tenant’s personal property
• Pet damage
• Natural disasters (floods, hurricane, earthquakes)
If you own a rental property that is located in a location prone to these types of disasters, you may want to consider purchasing more coverage for the property.
How do I know if I need landlord insurance?
• Short term: if you don’t intend to lease the property longer than a week or two I would recommend checking with your insurance provider to see if a plan offers short term coverage.
• Regular basis short term: if you operate a short-term rental property it would be best to purchase a hotel or bed and breakfast policy
• Long term: if you are planning to rent your house or rental property for 6+ months then you will be required to purchase business insurance.
Vacation Rental Insurance
If you live at the property part of the year and rent it out the rest of the year then it would be wise to purchase this type of policy. These policies tend to be more expensive because there is more time that someone will be residing at the property. On average this cost about $2500 a year
As you can see the insurance world is complex and can be very overwhelming. If you are concerned about the coverage you need for your property we highly recommend speaking to your insurance agent or a professional in the business. And as always feel free to reach out to All County!
Here is a link for the top 10 homeowner insurance companies to get you started!
What is renter’s insurance?
Renters insurance is essentially financial protection for you and your stuff. It’s like home owner’s insurance for tenants. However, it is much cheaper because it only includes what is inside the home. Some landlords require it, however often it is up to the tenants if they want to purchase it.
Personal Property Coverage
Most policies will cover property that has been stolen or damaged by fire or vandalism. If you live in an area that is prone to flooding or earthquakes that will be a separate policy.
Nearly everything you own will be covered. Tv, Jewelry, Furniture, Clothes, etc. Things it doesn’t cover include, car, pets, roommates’ stuff.
Insurance companies will reimburse you in one of two ways. Replacement Cost policies which will pay for the cost of replacing your stolen or damaged things with new ones. For example, if your bike was stolen, they will pay the cost of replacing your stolen bike with the cost of a new one. Then there are Actual Cash Value policies that pay to replace your things based on the value of them at the time of the incident. So, as you can guess the replacement policies will be more expensive.
The second type of coverage you will get is liability coverage. Which protects you if someone gets injured in your rental and sues you. It sometimes covers medical payments if someone is injured in the property.
How much does renter’s insurance cost?
Renters insurance is one of the most affordable policies you can buy. However, the cost varies by a few different factors. But the average cost I about $180 a year. According to the insurance agency group it is typically around $15 a month.
What can influence the cost of your policy?
• Your location: In general, if you live in a location that is prone to sever weather you can generally expect your rate to be slightly higher.
• Your credit score: In general, the higher your credit score the lower your rate will be.
• Amount of coverage: The more coverage you want the higher your rate will be. This depends on how much you own and the value of the items.
• The safety features installed in your unit: If your unit has a security system such as a house alarm, cameras, etc. already included or one that you choose to place, this could lower your monthly payments because having that amenities will reduce your potential risk of having a robbery.
Are you in the know on what is currently happening in the real estate market here in Texas? Did you know that most young families and young professionals are turning to renting rather than buying? Available homes for purchase are also few and far between making many choose to rent long term.
This means that rental properties are needed more than ever! So this may be your perfect time to invest in real estate! Do you have a home that could be used for your rental property investment already? Or have you found a home for a steal? Well you are already one step closer to making money off a real estate investment! Have you been worried about not making money, or running into trouble getting it leased out? Good news! The market here in 2021 makes it the best year for you to start your investment because those two factors are very unlikely to happen at this time.
Let me explain. Young families/ professionals who are just starting out may not have the cash to put a large sum of money down when buying a home. And as everyone knows Texas has become a very hot market in the past couple of years. This alone has caused housing prices to rise and these young people often times are getting out bid. Along side the rising cost of preexisting homes, housing materials prices are also at an all time high which has turned many away from building homes also. These factors are making it next to impossible to purchase a home. So what are these people to do. I’ll tell you. RENT!
Considering investing yet? Want more information on how to start? Ready to take the plunge? Visit our website or give us a call today so we can help you make the most off your investment! www.allcountygroup.com