How To Prepare Your Home to Limit Your Liability for Rental and Investment Properties
Protecting yourself as a property owner doesn’t have to be complicated. But, many owners fail to take basic steps that could put them at risk for serious exposure down the road.
Fortunately, learning how to prepare your home for renting while limiting liability is pretty straightforward. Here’s how we recommend you go about it.
Get a Home Inspection
Limiting liability in your home starts with a home inspection, which gives you peace of mind that the structure and interior of your home are safe to live in.
It’s also a good way to assess the current state of your rental property. You may discover basic upgrades that you can advertise in your marketing campaign, enabling you to increase rent.
Get Renters Insurance
Renters insurance protects you (and your tenants) from bearing financial responsibility for minor and even catastrophic events.
There are different types of renters insurance—homeowners and landlord insurance are two popular options—that you should weigh the pros and cons with your specific property.
Have a Renter’s Checklist Available
As part of your rental and investment liability strategy, make sure both you and your tenants have skin in the game. You can achieve this by putting together a renter’s checklist that you and they walk through during move-in.
Have both parties sign off on the agreed condition of the home. That way, down the road, you’ll have proof that the home was that way if something happens.
Put Together a Home Inventory List
If you’re still wondering how to reduce landlord liability, make a list of every item in the home. By creating an inventory list, you can organize and plan out your rental and investment property duties.
An inventory list is also a good way to ensure things don’t go missing or get damaged without being noticed. Treat the large and expensive items the same as the smaller and less valuable—everything in your home that holds value should be on your inventory list.
Check Appliances and Make Necessary Repairs
Accidents and injuries caused by appliances result in about 1,000 injuries per year.
Compared to other issues, this number is relatively small. But keeping up to date on your appliance repairs is a great way to protect yourself and limit liability.
Do some research on how often appliances need to be checked and/or upgraded. Keep these on a spreadsheet and perform routine check-ins every 6, 12, or 24 months (or once a season, like spring) based on need. This will also save you money in the long run!
Make Sure You Have All the Permits
Permits are valuable documents that can prevent you from being held liable when an incident happens.
Acquire all the necessary permits—building, zoning, and any others needed for your area—to ensure you are protected in this way, too.
Get Your Unit on the Market With Us!
Thinking about putting your rental and investment properties on the market? Let us help you!
We can put your unit on the market and help educate you with additional resources that limit liability on your part as a landlord or tenant.
Contact us today to see how we can help you!