Your home is one of your largest assets and choosing to rent it out, while a potentially fun and profitable endeavor, comes with many risks. The decision to let someone you may not know rent your property is not an easy one, but there are a few ways to make sure you protect yourself. While setting up your Michigan Home Rental Liability, keep in mind some of the risks that can become an issue with your rental home.
Sometimes it takes longer than expected to Rent Out the Property. This may be due to market conditions or it could be that the state of the house is not quite as appealing to potential renters. Whatever the reason, for every day that the home sits vacant, you as a homeowner are having to pay all expenses out of pocket instead of being able to rely on the incoming revenue. While the home remaining vacant for a short period of time might not be an issue, it may become a problem if it remains empty for an extended period.
As with the ability to find a renter, market conditions and the state of the home can effect the amount of rent you are able to charge. A home that is well kept and in a desirable location will allow you to charge a higher rent than a home that is run down or in an undesirable neighborhood. Further, the housing market is unpredictable. What might have been a good price last year might be factor that may be driving people away this year. Experts recommend keeping track of the local housing market prior to putting your home up for rent.
Disruptive tenants may be the biggest risk with renting out your home. The tenant is generally not as invested in the maintenance of the home and may let it get run down, break things, leave lights and water running, or simply annoy the neighbors. Tenants that violate term agreements by bringing a pet into the home after stating they wouldn’t, paying late or even refusing to pay can cause a serious drain on the owner’s finances and be difficult to deal with.
Renting a home comes with major liability risks. Any injuries to tenants occurring on the property that are found to be due to a lack of maintenance or dangerous conditions can leave the homeowner liable and may lead to legal action. Homeowners also risk discrimination accusations by potential renters. Therefore, written policies that demonstrate fairness is typically a good idea.
At Capital Insurance Group, we know your concerns when renting out your home. Call us today for more information on how we can help you find the renter liability coverage you need at 888.296.0418.