Protecting your Rental Home
You may be considering renting out your home or a second home as an investment opportunity. Though this seems simple enough, it can pose liabilities. Take the following considerations in order to protect your home.
- Ask for references from potential renters.
- Draw up a rental agreement that defines the terms of the rental, including restrictions, liabilities and occupancy guidelines.
- Request a security deposit that is to be refunded if there is no damage to your home.
- Advise Prairie Villa Insurance that you plan to rent out your home and ask about how this may affect your current coverage. Rented dwellings are not considered the same risk as an Owner Occupied Home.
- Consider hiring a property manager to look out for your home if you are renting for a long period of time.
- Make sure you add coverage for any personal property that may remain in the home, such as appliances or other furnishings.
- Take pictures of all areas of your home before the rental takes place in case damage occurs while you are away.
- Ensure that your Tenants carry their own insurance for their personal property as your policy will not cover their belongings. This also provides liability protection in case they are the cause of a loss.
Checking the references of potential renters is vital when determining if you will open your home to strangers. If you uncover any red flags while checking references, do not agree to rent your home, even if you are afraid of hurting someone’s feelings. Your first priority should be to protect yourself and your property.