Entries from August 2009
WHAT EVERY LANDLORD NEEDS TO KNOW ABOUT RENTER’S INSURANCE
By David Rush, Kistler Financial Group Inc.
Renter’s insurance is a “must-have requirement” for every tenant, especially in today’s litigious world.
WITH A RENTER’S INSURANCE PROGRAM, YOU CAN …
- Significantly reduce your liability risk. When someone is injured on your property, both the renter and the landlord may be liable. If your renter’s liability is covered by insurance, your liability as landlord could be significantly reduced.
- Help your renters’ protect the value of their personal property, which in turn can reduce or eliminate any claim against the landlord for property damage. This is the renter’s best bet for recovery after a catastrophe, like the California fires.
- Help your renters find great coverage, with quick, easy enrollment and low rates. Renter’s insurance is available for less than $.50 per day (based on the national average). Often coverage can begin by 12:01 AM the day after they call and make payment.
Find more on renter’s insurance by contacting Kistler Financial Group Inc. or through www.american-apartment-owners-association.com
Categories: Renters Insurance
Tagged: Renters Insurance
A bad tenant is like a mother-in-law who just won’t leave – only worse! Evictions are a slow, painful process, and the damage may be done before you can undo your bad decision.
Don’t hand over those keys until you have checked:
Credit Reports are not the only way to judge a tenant, but they do show, at a minimum, the applicant’s ability and willingness to commit to financial obligations.
Eviction History shows you what a current landlord reference might not – especially if they are eager to unload their problem tenant on you.
Criminal Background Checks protect you, your other tenants, and neighboring property owners. Nothing lowers your property’s rental appeal faster than giving the keys to a known at-risk tenant.
Avoiding Identity Fraud is a huge challenge today. Verify the information on the application – check employment and banking references, talk to the current landlord.
Go with your gut! Look for signs your applicant isn’t on the up-and-up:
Sign up now for tenant screening services – credit checks, criminal background checks, eviction history. Join American Apartment Owners Association today for deals on tenant screening, bad rent collection, legal forms and directories, and so much more!
courtesy of www.joinAAOA.org
Categories: Tenant Screening
Tagged: credit report, tenant background, tenant check, Tenant Screening, tenant screening provider, tenant screening report
The type of applicant you attract to your property is contingent upon a number of factors. The neighborhood, cleanliness of the property, rental asking price and your marketing methods are just a few things that dictate the quality of an applicant. Starting with a good applicant is the fist step in landing a quality tenant. A quality tenant is not just someone that pays the rent on time, but, also respects the property and the other tenants in the building. That is where good screening comes in.
Screening a prospective tenant is not pure science. It is a combination of ordering and understanding the appropriate reports available, verifying the information provided by the applicant, and ultimately a judgment call based upon a big picture view of the information provided and the applicant himself.
First, the reports that are available today are a tremendous help. A basic credit report or decision based upon a credit report is not the end all, but certainly should weigh heavily in making the final determination. The credit report will show, at a minimum, the applicant’s ability and willingness to commit to financial obligations. This will immediately tell you a great deal about a person. Eviction and criminal background reports are important for the obvious reasons that allowing someone to rent with a troubled history may not be the best choice for any property manager. Probably the most important report available today is those that check for fraud. Stolen identity is a huge problem today and protecting yourself from renting to someone that is not who they say they are is critical.
Verifying the information on the application can take some time but is well worth it. Confirm the employment and banking information. When it comes to current landlord, it is best to ask to see a current rent receipt. Calling a landlord for a recommendation may not always get an honest response, particularly if the current landlord is anxious to see the tenant move out.
Ultimately the decision to rent to an applicant is made from a variety of factors, not the least of is your “gut feeling”. Generally, if everything checks out but the prospective tenant is in a rush to move in, pays in cash, or can not provide you with sufficient documentation or confirmation for a few days, you probably want to hold off giving him the keys.
courtesy of www.aNewTenant.com
Categories: Tenant Screening
Tagged: credit report, prospective tenant, Tenant Screening, tenant screening provider, tenant screening report
Collecting delinquent rents can be a difficult and discouraging chore. Allowing a tenant to get away without paying is even worse. Once a tenant has skipped out or been evicted for back rent, you must take the extra step and aggressively pursue him. Not only are they essentially steeling from you but if you let it go, they will go on and cheat another landlord. We are all in this together and need to keep each other informed of bad tenants. Reporting to the Tenant Registry and the major credit bureaus puts all of us on notice that a bad tenant is out there and we should not rent to him.
Rent Recovery Service (www.aBadTenant.com) provides an online collection service that will take your past due rent accounts on a flat fee or contingency fee basis. The flat fee basis is very inexpensive and completely automated. The contingency fee based method is more aggressive and open-ended. Either method is effective and ultimately brings the money back to where it belongs…your bottom line!
In today’s uncertain economy landlords and property management companies can ill afford to lose money and let tenants get away with living in your building for free. Take charge and take back what is rightfully yours.
courtesy of www.RentRecoveryService.com
Categories: Debt Collection
Tagged: Debt Collection, debt collection agency, delinquent rent, delinquent tenant, rent recovery
Nowadays more property management companies are requiring that residents carry personal liability coverage as a condition of their lease agreements. One reason why they are requiring it is simply because many renters do not choose to obtain it voluntarily. The question of whether to purchase various types of elective insurance is difficult for many because it is money spent on the unknown. This can be especially true of renters insurance. Although many people are long-term renters, many residents live in their properties temporarily and do not want to invest any additional funds in renters insurance. Overall, most renters don’t believe they need insurance. A survey conducted by Cambridge Reports, Inc, for the Insurance Information Institute found that fewer than 3 out of every 10 renters purchase renters insurance. So why should any resident invest in renters insurance and why is it important for you to require it?
Renters insurance provides a simple peace of mind when it comes to the resident’s valuables and personal liability. Nearly 75% of residents have no renters or liability insurance, and community owners often end up paying the price. Losses can be in the form of damages caused by fire, smoke, explosion, and in some instances, water.
Have you ever thought about what would happen if you or one of your residents accidentally started a grease fire and it damages one or more of your units? Don’t think it can’t happen. The Wall Street Journal recently reported a fire that swept through an Austin, Texas apartment building leaving all the building’s units uninhabitable and 20 tenants without homes. Just this month an apartment fire in Detroit took the lives of a mother and her 3-year-old son. Investigators said the fire started on an electric stove. Catastrophes such as these could easily happen on your property and cause immeasurable damage.
Policies for renters insurance will cover your residents’ personal property in the event of a fire, theft, or other liability damages. The policy can also cover living expenses if there are forced to vacate their home because of damages due to a covered loss.
By encouraging your residents to obtain insurance you are informing them that they are the ones responsible for potential losses or personal liability. Explain to them that renters insurance is really the only security they have to replace their belongings in the event they are damaged or destroyed, and to protect their personal liability if others are accidentally injured in their home. Requiring renters insurance can ultimately offer peace of mind to both the property manager and the resident.
courtesy of www.joinAAOA.org
Categories: Renters Insurance
Tagged: Renters Insurance
As a Property Manager you may see the logical benefit in encouraging residents to carry risk insurance. It reduces the chance of your having to tap into your own insurance deductible in the event of a residents’ “negligence ”. But you may ask yourself how can this yield profits for me? How much does it really affect my bottom dollar?
There are several ways that requiring renters insurance can increase your revenue, reduce your expenses, and protect you from risk. Consider that nearly 75% of residents have no renters or liability insurance, and property managers often end up paying the price. Losses can be in the form of fire, smoke, explosion, and in some instances, water. If one of your residents caused a fire, they could damage not only their rental units, but other units as well. This could cost you an immeasurable amount of loss if your resident does not have renters insurance coverage.
As an incentive for obtaining renters insurance, property managers can offer monthly lease or rental options at a discounted rate. This will encourage more residents to lease or rent in your property thus increasing revenue. Some insurance companies will offer a transaction fee for every resident that enrolls in their renters insurance program or a revenue paid per door. Simply by presenting their renters insurance program to your residents, you can create an additional source of revenue.
courtesy of www.american-apartment-owners-association.com
Categories: Renters Insurance
Tagged: Renters Insurance
