By Ken Kmet, Condo Voice, Clearwater, FL

The level of lender foreclosures has increased in recent months, and that’s created an economic stimulus to the housing industry, in traditional and non-traditional methods in the pre-sale and pre-rental market. This stimulus may not be apparent to the general public, because most of these activities involve services that are not sale-related. Let me break down the basics and provide an overview for you.

The majority of banks have sold or given their mortgages to either Fannie Mae (FM1) or Freddie Mac (FM2), the U.S. government. You may not know who owns your mortgage. To check to see if Fannie Mae owns your mortgage, click here. To check to see if Freddie Mac owns your mortgage, click here.

Based on my observations, FM1 and FM2 have taken inventory of their properties and begun foreclosing on those that have the least amount of losses first. It doesn’t matter if the property is worth $20,000 or a million. The degree of foreclosure loss determines the order by which they foreclose or resume and finish previously started foreclosure processes. Another factor is the age of the previous foreclosure process.

Realtors are now being hired by FM1 and FM2 to list these properties for sale and rent. But before they can do this, a lot has to happen. FM1 and FM2 hire “scouts,” people who visit inventory properties to observe them from a distance, and to establish the “state” of the property for the lender. Is it abandoned, is it maintained, or is it occupied? If it looks abandoned, a sticker is placed on the front door, advising anyone who can offer information about the property to contact a provided phone number. I spoke to one scout who told me he visits an average of 50 properties each day. This indicates that a significant change has happened in the industry. Banks would not pay these expenses, which adds even more to their potential losses, to evaluate the state of their inventories, but the U.S. government does.

The scout files his report, and if there is no response within a short time, FM1 and FM2 hire a “preservation” service. Depending on the state of the property, if abandoned, the security department of the preservation service changes the locks and otherwise secures the property. There is some lawful question as to whether a lender can change locks on a property they technically do not own the title to. This is a case of it is easier to ask for forgiveness than get permission. And, if no one else cares about the property, it is better for the communities involved to have secured vacant property than non-secured, where homeless people and vandals can live in and most often destroy. I have seen examples of unsecured, abandoned homes where the conditions were unbelievable.

FM1 and FM2 are creating and stimulating the traditional and non-traditional real estate market, pre-sale, pre-rental, and after market. One wonders what this will do to property values as these properties flood the market. With borrowing rates low, and lenders (banks) being regulated with stiffer credit requirements and larger down payments, it is up to cash buyers to scoop up these properties while they can for cheap. But if there are not enough buyers, I see an incentive program coming in the near future from FM1 and FM2 to enable the purchase of these FM1- and FM2-owned properties by non-cash buyers who need assistance borrowing the money to do so.

One important note. It is a prime directive of any person or company hired by FM1 and FM2 to NOT disclose any information, including phone numbers, names, or addresses whereby FM1 and FM2 can be contacted by the public or the community association. All of my information is from the services named herein, as well as attorneys, realtors, contractors, and other national and local governmental departments related to and affected by this process.

By Linda Day Harrison, theBrokerList, Chicago, IL

If you are in the industry of caring for properties, leasing properties, or even selling properties, there is one tool you should never be caught without — the Emergency Calling List! It’s the one tool that does many things for anyone charged with caring for a property.

When you think about the word “emergency” it connotes visions of fires, floods, crime, etc. However, when you think of the words “crisis” or “disaster,” it sounds much more evil and sinister. The difference to me is that you can have an emergency, but if you are not prepared, it can quickly become a crisis or a disaster. There is a huge difference.

Being prepared, like Boy Scouts are always known to be good at, is an incredible skill. It takes thought, the ability to anticipate, and planning. On top of that, it does requiring testing from time to time and many “what if?” scenario considerations.

The first step to being prepared for any emergency, at the most basic level, is to start an emergency calling list. The list needs to be from the top down, and include all things you would need to know or people you can count on at 2 a.m. on Christmas Eve. Yes, can you reach these people at the worst possible time you can think of? How about 5:30 p.m. on a Monday night? Everyone is in rush hour driving home and all of the businesses you rely on are closed! That is what an emergency calling list can and should do for you.

Creating the emergency calling list is the first thing I do when I take on a new property. I create my emergency calling list before anything else is even considered. Why? Because I have been there and done that in my career, and extreme emergencies can hit when you least expect them.

The emergency calling list should start with the local and/or public authorities and work itself down through the chain of command, including vendors, neighbor properties, and key information you will most certainly need when you least expect it. The emergency list should contain phone numbers, email addresses, home phones, relative phones, cells, pagers, and whatever means necessary to reach individuals, as well as options if those fail. Just keep thinking, “What if this fails?” and “What if that fails?” If you keep thinking about “Plan B,” then “Plan C,” you are doing a great job in building your emergency calling list. Do not just accept a number for an office of a vendor either! Be sure you ask for the after-hours numbers! I have been there, done that. I know from years of practice that you must ask all vendors who are on your list what the procedure is for contacting their technicians on weekends and evenings.

Formatting an emergency calling list is something to consider as well. In my sample provided here, I have always kept my emergency calling list in alphabetical order by incident type, combined with sections for in-house personnel, public services, and neighbor properties. But this is just a sample! There are so many styles and layouts in how you create your form. The emergency calling list should be a daily event. Are there changes? Are people on vacation? Are there new vendors to add? New phone numbers? Et cetera. When you learn of a change, make it immediately! Do not procrastinate. Also, when you physically print the list, consider how many you need to print and distribute. How many do you need to hand out to your key personnel? Remember this is a tool and we must distribute physical lists, even with our high-tech world. One of the most severe emergencies you may experience may be loss of power. Without power there are no computers or Internet! Since we printed our emergency calling lists constantly, we simply added the number of copies next to each member of the team, and even that information was maintained on the emergency calling list. This would indicate next to each key contact name type how many to distribute physically. Yes, physically. Remember, if there is no power, all computers are down.

Once printed and distributed, think about where you want to maintain the physical lists. The emergency calling list needs to be maintained in several locations. Here are my locations:

1. Refrigerator
2. Car/trunk/glove compartment
3. Briefcase/laptop bag
4. Computer
5. Cell phone

In other words, I have physical, online versions and cell phone access to the data. If I am driving in traffic, I have one in my vehicle. For home use, I have a clipboard with a magnetic back that adheres to the side of my refrigerator. Believe it or not, it is the most often used list. Most emergencies happen after hours and in the late night hours. In other words, everywhere I go, I am prepared. It is such a relief when you receive an emergency call and you have your list at the ready. It can make the difference when you get your next emergency call and it helps to prevent any emergency from becoming a crisis or disaster. Why? Because you are prepared! Here is a blank sample form of what my most favorite type of emergency calling list looks like. Click here to check it out.

Do you and your team have the #1 most vital property tool ready? If not, stop now and get it done.

By Steve Boudreault, Buildium, Boston, MA

On the surface, it’s a day off in November dedicated to food, family, football, and invariably falling asleep on the couch until it’s time for leftovers. But at its essence — and in the name of the holiday itself — it’s a day for giving thanks for all of the blessings we have in our lives. Sometimes we take those blessings for granted, and Thanksgiving is the perfect time for reflection and gratitude.

Here at Buildium, we have an awful lot to be thankful for. It’s been a year of tremendous growth and industry recognition. We’ve been able to help thousands of customers navigate their way through issues that have come up. We’ve crossed thresholds and established milestones.

But more important than that, as individuals, we’ve grown closer. We’ve shared many laughs around the lunchroom table. Had the opportunity to spend time with each other’s extended families and plus-ones. Enjoyed euphoric highs and crushing lows with Boston’s storied sports teams. Sent a few of our own off to the altar. And yes, eaten a donut or two together.

And you know what all of that bonding creates? A family. A Buildium family.

And that family doesn’t end within our walls. It extends to all of you. All of our loyal customers and fans, all of the companies we work with, everybody. One big Buildium family.

So we’d like to take this opportunity to say how thankful we are. For each other, for all of you, and for the amazing company we get to work for each and every day. From all of us at Buildium, we wish you and yours a very happy, safe, and healthy Thanksgiving.

A guest post by Phillippa Carr, Premier Self Storage, Burton on Trent, UK

As a property manager, you take on a lot of responsibilities on a daily basis. You must deal with maintaining the properties that you manage and also deal with renovating properties and doing repairs once the current tenants vacate the property. From listing properties available for rent, marketing these properties through different channels, collecting rents, and inspecting properties, you already have a full plate. Wise property managers in the industry look for practical solutions at every corner so that they can manage their time and save money in the process. One solution that is becoming popular with property managers today is to rent storage units. Read on and find out why more and more property managers are using self storage to store their equipment and other tools.

Storing Large Machinery that Cannot Be Stored in the Office
When you manage or own a property management business, you need to look as professional as possible. The last thing you need is a vacuum, a lawnmower, or other large pieces of equipment sitting in the middle of your office. Not only is this a hazard, it also looks very unprofessional when investment property owners and potential tenants come into your office to do business. If you are renting an office space or own a space that does not have a back office or a warehouse, you need to find a place to store the equipment while it is not in use. Rather than looking for an office space that will cost more to maintain each month, you can rent a storage space close to your office and rid your office of the clutter.

Storage Units That Are Accessible 24 Hours a Day
Most reputable storage facilities keep their units accessible 24 hours a day, 7 days a week. You never know when your cleaning team or your landscaping team is going to need to pick up the equipment they need to clean up a property before a tenant viewing. If you schedule an appointment in the evening, you may need to send your team in after hours to make sure everything is done just to keep your reputation intact. Storage units are a great solution because they are accessible 24 hours a day. By renting these units, you never compromise the quality of the services that you offer.

Size Matters
There are several different storage units available in a wide range of different sizes. If you want to store belongings that your past tenants have left on property while you are repairing the property to be rented again, you may want to choose a larger storage unit that will give you more space. If you are strictly looking for a space to store equipment and materials, you can opt for a smaller space that costs less each month. Make sure that you look for spaces that are secure and monitored, and keep all of your business equipment and materials offsite and accessible.

A guest post by Kevin Raposo, SimpliSafe, Cambridge, MA

Ever wonder what goes through the mind of a burglar? We got the chance to sit down with some burglary professionals and asked them. Here’s what we discovered:

A Tonka Truck left in the yard could invite a burglar to choose your home.

Home burglaries may seem random in occurrence, but they actually involve a selection process. A burglar’s selection process is simple: choose an unoccupied home with the easiest access, the greatest amount of cover, and with the best escape routes possible. Don’t have a burglar alarm? Here’s a list of suggestions that will help you minimize the risk of a home burglary, and also make your home unattractive to potential burglars.

Before picking a home, a burglar will scope out your entire neighborhood to get a better idea of what he’s working with. To do this, he will usually walk around with a rake, or even go as far as dressing up as the cable or electric or phone repairman. “I’ll even post a flyer on your door to get a closer look into your home,” says professional burglar Cliff T.

Here’s how to make your home less desirable to burglars:

• Tear down the privacy fences. These give a burglar excellent cover from neighbors.
• Trim your bushes. Any sort of high vegetation, like trees or shrubbery, covering your windows allows a burglar to break them without being detected. Burglars prefer lots of cover.
• Put away the Tonka Trucks and strollers. Toys or playground equipment in your yard are signs that kids live there … which usually means a mother lives there … “cha-ching,” that means JEWELRY.
• Create the illusion that you are home. By using timers on lights, radios, and TVs your residence will appear occupied, even when no one is home, which will deter the bad guys.

Here’s an eye-opening diary entry from a convicted burglar that gives you a more in-depth view into the mind of a burglar, and how he targets a home.

Inside the Criminal Mind of Joshua Komisarjevsky

Property owners should be looking at their home with the eyes of a burglar. In other words, consider the location of the home from various angles. Is the home isolated or surrounded by other homes? Does it provide secluded nooks and dark corners for a burglar to hide in or escape from? Is the house adequately lit or relatively dark? Is there a security system? Burglars will look at these things when identifying potential targets.

Here it is, what you’ve all been waiting for: Buildium’s State of the Residential Property Management Market Survey Report. Enjoy!

By Linda Day Harrison, theBrokerList, Chicago, IL

Sorry folks, but the answer is: it depends! I know you hate that answer, but here’s why it does really depend!

Engineer/Maintenance Staff: The number-one issue for any property manager to evaluate is whether or not there are on-site engineers or maintenance, or if they are in close proximity to the property. As far as what makes it really painful to be off-site, not having on-site maintenance or even a handyman can make or break the assignment. The worst case is to have no on-site maintenance and no on-site manager or leasing agent. This is generally accepted in the smaller properties where this expense is absolutely cost-prohibitive. The rule of thumb would be anything smaller than 20 units. Anything larger than 20 units and you need to consider extremely accessible, outsourced maintenance or a live-in superintendent of some type. It will always be to your advantage to have someone on-site to be a body when there is a service request or a vacant unit to lease. A single vacant unit can gobble up tons of labor in driving back and forth for showings. Also, it is not a good idea to make any prospective tenant wait to see a unit. In leasing, you have to be there to get the job done when the prospect wants to lease. That is probably why so many small properties are self-managed or the owner actually lives there!

For properties of 50 units and up, the following need to be considered as well:

Size of property, or economy of scale: The property has to justify the expense. It’s that simple! If the property is not large enough, it doesn’t make sense. However, it depends. For instance, if the property is located in a place where there’s a need for a hands-on manager or leasing agent due to vacancy, then on-site can be justified. Also, if the property has the income to justify it or projects that warrant it, such as major capital improvements or a lease-up, it would also make sense. The bottom line is that there are various tests of common sense with respect to on-site versus off-site.

Another example is a client that owned a portfolio of multi-family properties and a handful of commercial properties as well. We needed to create a suburban location, so it made sense for our firm to house some of our staff on-site. Now a small building has on-site management and the company was able to land a nice-sized portfolio!

Vacant Units or Space Available: When it comes to a lease-up, there is no doubt that being on-site is a great advantage to the success of the leasing. If the property has an abundance of empty apartments or vacant office space, put on-site people there! There is no sense driving back and forth for showings and if you are leasing; there’s nothing like being there to respond to showings instantly. The same holds true for all property types if the configuration of the property warrants your team to be housed, even temporarily. Do not let the leasing suffer because of this important point.

Outlots and Outbuildings: Some properties have extra buildings or extra land that is underutilized. If that’s the case, it’s a wise idea to determine the cost benefit analysis of housing on-site leasing or management. If you can purchase or lease a mobile office, why not be there for the customers during the lease-up or construction?

Geographic Strategy: When getting calls for new business, always consider the geographic proximity of your staff and the drive time between properties. There are many considerations to make when it comes to distance. Many property types do not warrant any on-site presence. For instance, single tenant net lease, industrial, and many retail properties fall into this category. These tenant profiles are independent business models that do not require on-site services or assistance. It is a different world from the multi-story, multi-tenant properties, and these facilities don’t have as many moving parts. Always consider the economics of staff travel too. It may not make economic sense to spend a lot of time driving back and forth, so be sure you resolve as many issues as possible if you are off-site. For instance, ask one of the on-site tenants to be a key holder. Provide a secure lock box and have that tenant provide the lock box to inspectors, utility companies, or other authorized personnel. It’s bad business to make people wait or to delay work or respond slowly to power failures because there is no one on-site to permit access to mechanical rooms.  Think through the practicality of visiting those sites for inspections and emergency response needs. Off-site can work nicely if you plan and strategize the outcomes of the worst-case scenarios. Always strategize those what-ifs so you don’t waste precious staff time. Remember, an off-site office should not pose a disadvantage to anyone; if it does, there is something very wrong.

With today’s speed of information, via the Internet, the use of cell phones, iPads, Google docs, and connectivity to video, there should be ample ways to provide property coverage without adding more overhead, while also providing fast service.

Economics of Property Management: It’s customary for a property management company to want to provide the best possible management and the highest level of service. For the most part, being able to set up an on-site office inside a vacant unit or vacant area within the property is the most ideal. In those cases, the cost of the overhead of that office and the related salaries are the expense of the property. For that reason, many owners opt to avoid having on-site labor that is exclusively borne by their property. Another way to structure this arrangement is to permit the use of the vacant unit to the management company and enjoy the benefit of an on-site staff, but permit that on-site team to manage more than one property from that location. This can be problematic, however, if the property owner doesn’t understand how this really works. What this means is that other business is conducted from their site; however, they are not paying the full freight of the salaries. If the property owner totally understands the trade of bodies on-site vs. the loss of income, on a prorated basis, it can be a tremendous advantage and a real win-win for everyone. Many residential properties are clustered in neighborhoods, so grouping a team and permitting them to work from one location can make economic sense.

Hybrid of On-site and Off-site: The best situation is that your next property management assignment is large enough to warrant an on-site management and leasing team. It’s a clearly defined and exclusive arrangement whereby the property owner absorbs the cost of the salaries and the overhead of the office. It’s the same cost the property owner would incur if you were not an outsourced third-party management agent. However, it’s not always possible, and since most property owners are not financially able to absorb the full-time salary of a property manager and/or leasing agent, we as management companies need to share and outsource our labor over multiple clients, and if there’s leasing involved, we must stress the vital importance of having folks on-site, even if only during leasing season. In those cases, we are housed off-site and on-site! The point is we have to make it work for the property, as it always depends in property management, and it should be evaluated on a property-by-property basis.

By Ken Kmet, Condo Voice, Clearwater, FL

Seawalls are everywhere. There are endless miles and miles of them. If you live in a condominium, HOA, townhouse community, or home along the beach, bay, inter-coastal waterway, or lake, you most likely have one. Most condominiums and community associations do not reserve for seawall major repair and/or replacements. Other than the actual building structure, much of what they protect is not a covered loss under your association’s insurance policy, including your swimming pool and other ground-floor elements and facilities. So much of what seawalls protect, if damaged or destroyed, will be an out-of-pocket expense to repair or replace. Most seawalls are not inspected annually and have no maintenance performed on them. If you think a roof is out of sight, out of mind, try seawalls. No one wants to think about increasing the monthly maintenance fees to cover those costs. What shape is your seawall in? As federal and state funding for beach re-nourishment dries up, you’d better have a look at your seawall. Seawall contractors know this, and are gearing up for a bull market in seawall repairs coming soon to a shoreline near you.

Most communities are lulled into a false sense of security when it comes to seawalls, especially along the beach. Federal and state tax dollars have paid to rebuild beaches many times over the past 20 years so they are protected from hurricanes. However, as is and will be the case for the foreseeable future, that funding has ended. As of this writing. for example, Florida’s Pinellas County beaches are being restored, adding 300 feet of beach sand along 10 miles of beaches. However, all it will take is a couple of no-name storms or one big storm to erode most if not all of that beautiful new beach sand back into the sea. Then, the only thing standing between the destruction of your buildings is your seawall. Have I painted with an accurate brush a picture you have hidden in your management closet for a couple of decades?

Without a beach, the seawall is the only thing keeping the land under the buildings in place. When the seawall fails, the ground is washed out to sea, causing at least the ground and first floor of the structure to collapse. Other candidates for destruction include your swimming pool, railings, fences, light poles, landscaping, driveways, parking lots, security houses, maintenance rooms, irrigation systems, domestic and reclaimed water pipes, utilities, storm water pipes and drains, and many other community-specific surface and ground floor elements. Suffice it to say, seawalls protect way more than you may have considered. Those seawalls have had a great life the past 20 years or so, because the beach has been maintained during that time. But, just because the waves and water have not been crashing against it, doesn’t mean they haven’t been aging just as quickly.

Let me also paint picture with regard to coastal structures protecting property and life. Hurricane Katrina caused severe damage to property and life, but it wasn’t an epic catastrophe until the levees broke. Your seawall very quietly has been protecting your property and life for a long time. What can you do? Let’s have a look at that.

First you have to understand what causes the problems, so you can do something about it. Salt is the nemesis. Salt is the catalyst the steel needs to start corroding, rusting, expanding, and cracking the concrete, resulting in a “spall.” As anyone who lives along salt water knows, salt gets into the concrete and causes major repairs to the walkways, balconies, and parking garages. Seawalls are no different than any other form of exposed concrete. In fact, it gets much less attention, cleaning, and protection than a walkway or balcony, and, by design, has relatively more reinforcing steel than most floors, slabs, beams, and walls. In fact, in most cases, they receive no coatings, no maintenance at all.

Seawalls age, just like everything else on or near the beach at a rapid pace, as compared to inland steel-reinforced concrete structures. You should have your seawall inspected annually by a licensed marine structure contractor or an engineer who specializes in marine structures. They will examine the current status and health, and make recommendations for maintenance and repairs. They can also give you the remaining life expectancy and replacement cost, so that you can establish a reserve fund.

In addition to examining the actual structure, they will offer advice on the use of adjacent facilities. For example, if you are on an inter-coastal waterway or bay, they will look to see if there has been any scouring or prop washing. This occurs when a boat backs into a boat slip and runs the propeller, displacing the sand next to the seawall. One of the reasons is so that they can get closer to the seawall, expanding the length of the useful slip area. However, the sand next to the toe or base of the vertical panel of the seawall is there to hold the panel in place. By design, there should be at least one-half of the panel length covered by sand. Panels are typically 10, 12, or 14 feet in length. Without this sand in place, when enough hydraulic pressure builds from behind the wall, this toe can push outward or fail. Every community association with boat slips should have a rule or restriction against prop washing, end of discussion on that.

Don’t want to spend the money for an inspection? Need to justify the expense? Even without a contractor or engineer, anyone can walk along the seawall’s “cap” and look for cracks, rust bleeding through to the concrete surface, chips, and spalls. Cracks usually appear running parallel to the cap’s length. You can take a long stick or pole and measure roughly the depth of water, height to the cap, and estimate whether you have adequate sand cover of the toe. You can walk on a dock and examine the panels to look for usually horizontal cracks along the panel’s width. You can dig holes where the tie-backs are located, expose the tie back steel bars, and see if much corrosion has occurred. If you look waterside of where the vertical panels join, with clear water you may see small hills of undisturbed sand leaches out between the panel joints. If this is happening, you may also see a related hole land-side of the cap in your turf. Just filling the hole land-side won’t cure the problem, but it will temporarily relieve you from a trip-and-fall liability. There is more to detail about the problems and cures, but that is for another article, or information you should obtain from your local professional.

The longer you leave these problems unattended to, the more you have decreased your seawall’s life expectancy, and the more it will cost you when you finally do get around to doing something about it. It is also true that, when it comes to seawall repairs, nothing is cheap and nothing happens quickly. The licenses for marine contractors are heavily regulated, and the permits involved in whatever will be done take more time than land structure permits. There are always environmental concerns. There are only a limited number of environmentally approved products that can be used, and protections must be put in place waterside of the work areas.

Thankfully, there are things you can do to treat your concrete. There are water-based clear penetrants that can be spray-applied to the exposed surfaces of the concrete, are environmentally approved, and do not cost a fortune. There are epoxies available that can be gravity- and force-fed into the cracks to seal and protect the internal steel from additional exposure to the elements. There are maintenance services you can perform to the tie-backs to coat them and protect them from further deterioration. Again, your local professional can advise you on what can be done to help.

The bottom line here is, do yourself and your community a big favor. Grab a cup of coffee, and take a walk along your seawall and really take a close look at how it is doing. If you see any evidence of aging, or obvious problems, at least have your seawall inspected by a marine contractor or structural marine engineer. It is better to know what shape it is in and what can be done than to ignore it, live in denial, and/or stick your head in the beach sand.

A guest post by Tracy Myers, homeinsurance.org, Houston, Texas

The importance of renters insurance really cannot be highlighted enough. Tenants often forget about renters insurance, because a lease is temporary and the property is not their own. Some believe that if their landlord already has the property insured, they have nothing to worry about, but if you think about it, you wouldn’t lease a car without purchasing car insurance. Not just because it would be illegal to not buy car insurance, but because your finances would be ruined if you were to get into a car accident or suffer some other form of loss. Although residents are not required by law to buy renters insurance, the financial ramifications of not having it are great.

Even if a landlord or property owner has insured the building, there are still many reasons why residents need renters insurance. For example:

To Cover the Loss of Personal Property

If a resident loses personal property (clothing, electronics, furniture, home ware, etc.) because of damage from fire or smoke, severe weather damage, theft, and more, they will be left to replace those items out of pocket if they don’t have renters insurance. With insurance, the depreciated value of their possessions will be covered. They can even upgrade the policy to cover the actual value. Just the thought of losing everything they own should be enough to convince them to insure their belongings. For those who believe they don’t own enough for it to matter, most people’s personal property is worth more than what they think. If they don’t have the extra cash to replace everything with their own money, they need to consider buying renters insurance, which only costs around $15 per month.

For Liability Protection

If some accident starts in a tenant’s home and the damage spreads to other homes, renters insurance will protect the tenant from any legal action. For example, if a neighbor suffers personal property loss or injury from a fire that started in another resident’s home, that resident will be protected from any potential legal action taken by the neighbor.

For Guest Medical Coverage

If a resident has a guest at their home who suffers injuries from an accident on the property, renters insurance can cover the medical expenses incurred by the incident. For example, if a guest gets bitten by the resident’s dog, the resident’s insurance policy will pay for all necessary medical treatment.

These reasons clearly show just how essential renters insurance is to the protection of your personal property and your personal finances. If you are a landlord or property manager, share this information with your tenants and encourage them to purchase a policy as soon as possible. If you are very serious about every tenant having insurance, consider making renters insurance a stipulation in the lease agreement. You can enforce this requirement by only giving a renter their apartment keys after they have shown an official copy of their policy. To be sure that every tenant maintains their policy, ask for an updated declaration of insurance every six months.

If you are timid about requiring renters insurance, consider this: many renters are only interested in leasing at properties that require it, because they know that it is important for all of their neighbors to be insured as well. Renters also like to see that their landlords care about their well-being.

Tracy Myers is a freelance blogger with a passion for helping others navigate the dark waters of personal finance. As a regular contributor to several consumer help websites, such as www.HomeInsurance.org, Tracy often covers topics related to personal property advice, retirement, and financial planning.