Everyone seems to think that property investment is a great way to guarantee income, but if you have turned your space into rental units, you might have experiences that say otherwise. If your cautionary tale to other investors warns that tenants always pay rent late, you might want to get out being a landlord altogether. As unfortunate as it may be, dealing with late rent can be common for many property owners, and there are ways to reduce the financial burden it puts on you.
When you consider the damaging effects of lost rental income, as seen on https://www.rentrescue.com, having an insurance policy that can reimburse you for lost rent can be a lifesaver. The overall costs of these policies are well worth the protection it provides in the event of tenant evictions, legal costs for court cases, and issues of tenant abandonment. A strong rental insurance policy could potentially offer:
- Three to six months of lost rental income for issues of abandonment, eviction, or tenant death
- Legal fees associated with eviction filings, damages, or other suits against a tenant
- Potential tax deduction for the premium expense
- Low monthly premium cost per unit
Owning rental property carries many areas of liability, and too often a landlord only considers property and bodily harm concerns. The loss of rental income can add up, financially crippling a landlord that depends on each unit’s rental costs.