Owning a rental property can be a lucrative venture if landlords take the appropriate steps to protect their finances. A serious risk of investing in rental real estate is the potential to suddenly lose income. Fortunately, property owners have options for safeguarding their assets. For decades, the professionals at Lani Properties Corp. have helped clients find the perfect Honolulu, HI, homes and apartments to invest in, and offered expert property management services.
Committed to their clients’ success, here, they share advice on how to avoid rental income loss on your real estate:
Landlord Insurance & Rental Guarantee
There are many different types of coverage available, but whatever you choose, always ensure your policy includes protection for rent loss. In the event of a disaster that renders a property unlivable, it allows landlords to recover finances from stalled payments. Another available option to keep in mind is rental guarantee insurance. This helps owners recoup their losses if a tenant refuses to pay.
It’s also a good idea for property owners to request a security deposit from their tenants. In the event a tenant decides to suddenly move out without giving proper notice, the deposit can be used to cover the rent while looking for a new occupant to move in. This helps prevent at least a month of income loss. In addition, security deposits are useful if a renter leaves the property damaged or in disarray. As long as the laws are followed, there’s a good chance this money can be used to pay for cleaning and repairs instead of taking the funds out of rental profits.
Having protection from rental loss is highly recommended if landlords rely heavily on the income they generate from their property. The experienced team at Lani Properties Corp. has been serving Hawaiian residents for over 40 years and offer their clients honest and valuable advice. Call them today at (808) 521-0081, or visit them online to view current real estate listings.