The property owner and tenant relationship is a delicate balance. The relationship requires responsibility from both parties. Renters insurance is a product that adds a layer of protection for the tenant, as well as the owner of an Atlanta rental property.
When owning and operating a rental property, investors must prioritize every possible protection to preserve cash flow and build long-term wealth. These protections include the best insurance coverages to protect against renter mishaps, natural disasters, or break-ins and thefts. As your portfolio grows, these protections become even more critical! Our Atlanta property managers are here to help you understand what renters insurance is all about and how it can help as a critical component of the leasing equation.
What is Renters Insurance?
Renters insurance provides protection for tenants living in a house or an apartment. A traditional renters insurance policy will help protect renters and their belongings while also providing some financial assistance in the event that the home becomes unlivable for a short time.
Every policy can have varying coverages and limits, and each renter must decide what's best for their needs. It's a smart way to protect themselves and their property while living in a rental home in Atlanta.
Can You Require Renters Insurance?
In most instances, property owners can require tenants to have renters insurance—and it's smart to do so. If something goes wrong in one of your rental properties, your landlord insurance covers you and the property. However, landlord's insurance offers no protection for the residents living in your rental home. With renters insurance for every tenant, property owners can worry less about tenants trying to make a claim against you or your real estate investment business if their belongings become damaged during the lease term.
Property managers can confirm that the state of Georgia doesn't require property owners to require renters insurance, nor does the state require tenants to have it. However, rental owners have the option to require this type of coverage as part of the qualifications to live in a property. Make sure you develop custom lease agreements that include language detailing this condition of becoming a resident in your rental.
Renter's Insurance Doesn't Cost Property Owners Anything
One of the best reasons why it's a smart idea to require all residents to have an active renters insurance policy is that it doesn't cost you anything! Since tenants purchase renters insurance, investors add to their layers of protection from renter mishaps without paying anything out of pocket.
There will be times where accidents take place in an Atlanta rental property. What can you do? As long as you have landlord insurance and your resident has renters coverage, you can both rely on your policies to fix the situation and get everything back to square one.
Apply the Requirement Fairly
Often, having a requirement for tenant insurance helps investors find and place better quality renters. If a potential resident isn't willing to pay for coverage to protect themselves and their belongings, they probably aren't a good fit for your rental anyway.
However, it's critical not to use this requirement as a way to discriminate against specific residents. When requiring renters insurance, make sure that applies to all residents, including potential renters going through the screening process and existing residents with an active lease or who plan to renew.
Work with an Atlanta property management company to apply fair criteria and tenant screening practices when marketing rentals and placing new residents. The right property manager helps investors protect properties and income by navigating the laws and avoiding discriminatory practices.
Renters Insurance Is a Low-Cost Protection
Property management companies recommend that when asking residents to carry an active policy, help them understand that renters insurance is affordable! While the cheapest policy or insurance companies might not be the best coverage, renters in Georgia pay an average of $214 per year to maintain an active policy. That's a small price for residents to pay to protect their finances and personal property while living in your rental. This low-cost coverage also gives property owners peace of mind that renters care enough to protect themselves during their lease term.
Work With An Atlanta Property Management Company to Enforce Renters Insurance
Renter's insurance is a smart thing for residents to put in place when living in an Atlanta rental property. Work with your property management professional to include this requirement in the qualifications for living in your properties. Renters Warehouse Atlanta helps property owners create custom leases that include the ideal qualifications and rules to protect investors and rentals. We also work with renters to make sure they have insurance coverage and answer any questions they may have about finding the best policy.
If we can help you set up this layer of protection for your residents and properties, give us a call! We're to help with any aspect of our professional property management services.
What else should property owners do to protect their investments? Get our free guide to learn more!