Your Hendersonville rental investment is a smart strategy for creating passive income and growing your wealth. However, just like any other investment, you need to protect your money and the investment. In this case, it’s the rental property.
These five ideas will help you protect your investment from a variety of risks.
1. Purchase Landlord Insurance
Accidents happen, and as the owner of the property, you could be held liable. Landlord insurance protects you. A typical insurance policy will cover the building itself and other permanent structures on the property.
Your insurance policy should also include liability coverage. This coverage protects you in the event that someone gets injured while on your property. Having complete insurance coverage protects you, your investment, and your financial status for continued growth.
2. Buy a Home Warranty Plan
Your insurance policy doesn’t protect everything in your rental home. This is where a home warranty plan steps in. It will cover a wide variety of home systems and appliances that are located inside of the home. Should something break and require repair, your warranty plan will cover the cost and prevent you from having a huge out-of-pocket bill.
Many warranty plan providers will act as a go-between with service contractors. This means you only have to make a single call to your provider, and they handle the rest.
3. Run Background Checks on Applicants
One of the biggest risks to your rental property investment is the tenants living in the home. Renters will never treat a property as well as you would. Even if they do care for your property, natural wear and tear will cause the home and everything in it to age.
Things get much worse when you have a tenant that doesn’t take care of your property. You could end up with thousands of dollars in damages to your property. Then any income generated will be lost as you pay for repairs. Run a background check on every applicant. Find out how reliable the applicant is by checking their credit score, criminal convictions, and renting history. Always make the search country-wide. This will catch out-of-state infractions.
4. Conduct Regular Inspections
Do not depend on your tenants to give you an accurate assessment of your rental property. To ensure your property stays in good condition, you need to inspect it periodically. Do this for both the exterior and interior of the home. Make sure your lease includes your right to inspect and always follow the law on providing proper notice to your tenants. Arrange to have any maintenance or repair needs taken care of. This prevents the problem from getting worse.
5. Hire a Property Manager
Taking care of your rental properties can become a full-time job and overwhelm you with tasks. Active management of your rental properties ensures you know exactly what’s going on with your properties. This can take away from your full-time job and family life.
Hiring a property manager gives you someone you can depend on to help you take care of your rental properties. Your manager can do everything from marketing to screening tenants, performing inspections, and scheduling maintenance or repairs.
Protect Your Hendersonville Rental Investment
Protecting your rental property investment is crucial for ensuring you make the most of your investment. You don’t want to lose any profit or value gained because of a bad tenant, accident, or unexpected maintenance repairs. With a bit of forethought and planning, you can be ready for any unexpected expenses.
Contact our team of knowledgeable property managers and let us help you protect your property investment.