“It’s okay if I run my catering service from here, right?” With 50% of small businesses starting off as home-based operations, you’ve likely encountered a similar question from your renter. No need to stress about how to answer: start by learning about your tenant’s proposed business.
Once you determine the type of business your renter would like to run, understand the associated risks. These include the potential for increased property damage and greater exposure to third-party liability.
You can reduce the risks of a home-based business at your rental by setting clear rules in your lease, having the proper insurance coverage, and ensuring your tenant follows all local laws and regulations.
Recent SingleKey survey results show that most renters are discouraged from moving or buying a new house in the current housing and rental market due to increases in rent, low supply, and high mortgage rates.
Rent increases have been on the rise for years. As of August 2023, rent increases are finally beginning to stabilize.
The demand for housing, high-mortgage rates, and increased inflation have contributed to the rent spikes.
In a survey of over 900 tenants, people view communication and responsiveness as the most important landlord trait.
Landlords can stay in most tenants’ favor by being clear with rental terms in the beginning of the tenancy, announcing any inspections in advance, and promptly responding to tenant issues.
To manage tenant expectations effectively and minimize complaints, landlords should abide by the regional rent increase laws, remain flexible with payments, and inform tenants of late fees.
A reserve fund is a pool of money set aside to cover irregular, expensive, and unforeseen expenses for a rental property, such as major repairs, vacancies, renovations, and legal costs.
One size does not fit all: the property type and age, your risk tolerance and experience as a property owner, and the state of the rental market all play a part when deciding how much to save.
To maintain a healthy reserve fund, make regular contributions, refrain from using the money for everyday business activities, and review your balance regularly to ensure you have enough to meet your property’s needs.
A SingleKey survey found that 70% of renters have concerns about an economic downturn affecting their living situation.
Employment rates are steady, the U.S. economy is performing well, and Canada’s economy has recovered.
Landlords can take measures like screening their rental applicants, securing financial aid, and locking in low, fixed-mortgage rates to help safeguard their rental income during an economic downturn.
Encouraging renters to get insurance is a smart move for both renters and property owners. For tenants, renters insurance protects them in many situations, including fires, natural disasters, and theft.
Landlords also benefit from tenants who have renters insurance. Claims from tenant-caused damages can be filed under a renter’s insurance policy, which prevents them from impacting a landlord’s insurance premiums.
The average annual cost of renters insurance is $148. This makes it an affordable option for complete coverage that benefits tenants and landlords.
Before implementing a home security system, consider your budget, the level of protection you need, the complexity of the installation process, and whether you or a professional firm will be in charge of monitoring and responding to security threats
Popular security options for rental properties include smart locks, surveillance cameras, video doorbells, motion sensors, alarms, security lights, and professional monitoring services.
The benefits of a security system for your rental include lower tenant turnover, reduced risk of property damage and theft of personal belongings, discounts on insurance premiums, and the ability to charge higher rent fees.
Most people surveyed admitted that they look for online reviews about their landlords before applying for a rental property.
Negative reviews can ruin your reputation and discourage potentially good tenants from applying to your rental.
Landlords can manage and prevent bad reviews by screening tenants, responding to tenant complaints, adhering to tenancy laws, and replying professionally to each bad review.
All inland and coastal regions with a 1% chance or more of experiencing a flood each year are considered high risk.
Flood risks are a growing concern: flooding is already common in the U.S. and the frequency and intensity of these events will only increase with evolving weather patterns.
Water damage to your rental caused by flooding is commonly covered by flood insurance, but landlords should take preventive measures by converting flood-prone areas into rain gardens or adding permeable landscaping.
Vandalism, like graffiti, can devalue a property by 15%, so it’s important to take steps to secure your rental. Fences, gates, and security cameras can all help to reduce the risk of vandalism.
Review your insurance policies carefully. Personal property or burglary may not be covered under standard landlord insurance policies.
Working together with your tenant and neighbours is a simple, yet effective strategy to fight vandalism. Educate tenants on the property’s security systems and build community relationships so everyone can stay vigilant.
If you have fire insurance, you can rest easy knowing that most fire-related damages to your rental property and belongings, as well as costs tied to lawsuits and lost rental income, will be covered.
What’s not covered under fire insurance? Fires that are started deliberately, fraudulent claims, failures to meet local building and fire codes, and any fires resulting from extended vacancies.
Fire insurance plans vary. Assess your needs, budget, and risk tolerance when evaluating policies from insurance providers.
Have the lights been flickering around your rental property? Or maybe you’ve noticed outlets that are warm to the touch. These are all telltale signs of potential electrical issues that could cost you.
Other common electrical pitfalls to watch out for include loose-fitting outlets, forgotten or unattended cooking, and old appliances.
Create a checklist to stay ahead of electrical issues. Both landlords and tenants can prioritize electrical safety when loading power strips, plugging items into old outlets, and using electrical equipment.
