Being a landlord can be lucrative, but it can also be risky. Many individuals buy property so that they can rent it out because this is a good and often simple investment to make. For the most part, renters look after things like the garden, flooring, and fixtures. After all, when you live somewhere, you want it to look good, and most people are conscientious anyway.
On the other hand, some tenants know they are not going to live in your rental house for very long. They are not concerned with how the property will look when they leave. They could care less about the deposit they have given you: they know you will need it and more to clean up the damage left behind by parties or animals. Landlords are left feeling disillusioned by the renting business and with a huge mess to clean up before they can rent their property out again.
This could mean they have an uninhabitable property on their hands and no way of getting compensation for this. While losing money is a possibility, having insurance will often save the landlord’s financial bacon. Other issues that arise for landlords are matters of legal liability. It might be that an accident occurs at the rental property which, the tenants argue, should have been prevented by the landlord. He should have taken more time to assure the building was safe. Perhaps it was an electrical accident which led to burns or more serious injuries.
Maybe a vehicle was damaged because the landlord failed to restore the driveway as he had planned to do.Moreover, the Independent’s Alex Johnson recently reported that landlords are losing their tenants’ deposit money. There are a few ways for them to protect this money, but many do not. As a result, tenants are taking their landlords to small claims court to recover this sum.
A once profitable venture could turn into a legal and financial drama. If the landlord takes care to secure the renter’s deposit and scrupulously cares for his property, regularly inspecting it and responding to renters’ concerns promptly, an unexpected crisis could still land him in court. Home insurance alone is not enough to protect the landlord from financial damages sought by injured and or traumatized clients. Before embarking on this investment plan he should get a landlord insurance quote. Insurance will help pay for legal costs and liability.
