Renters insurance: mentalities to avoid
Before you allow a tenant to occupy a unit in your building, it is mandatory in view of the law to have them sign the Atlanta retail space lease. For most landlords and property managers this is done as a selfish move to protect their interests. Most tenants until they have been exposed to some form of risk, do not think that insurance is important and will blindly sign the agreement without much thought. As a residential properties service provider, it is important to prepare for eventualities that could bring loss to you and to your tenants. From surveys conducted across renters in Georgia, it is clear that most property owners leave out the insurance clause from the lease agreement out of sheer ignorance. Here is a list of common mentalities to avoid.
Insurance only covers the renter
This is actually true because in the event of theft and some belongings get lost from a rented building, insurance will cover this loss up to the limit of the cover. You as the landlord have no stake in this because no where will you get involved in the compensation. Landlords fear that they will be asked to cover part of the loss but this does not happen.
Renters will pay for damages
It is common knowledge that whoever causes damage to another’s property bears the cost of replacement or repair. Most renters by virtue of living in a modern setting means that they have bills to pay and other responsibilities to take care of. If a kitchen fire arises for instance, the damages could go up to thousands of dollars. Suing the tenant is the first reflex action but how much would they be able to pay as settlement? If a renter’s insurance policy was in place, the cost of damages would be taken care by insurance claims.
Renters insurance will put off renters
It is important for renters to know from the start that they will be paying for renters insurance in addition to their rent. This way, you as the landlord or property manager have the basis for evicting a tenant whose policy has lapsed or one who refuses to pay the premiums. It is important to have all units occupied at one particular time, but what is the point of risking occupancy of the entire building just because one tenant is not cooperating?
Renter’s insurance is way too expensive for my tenants
Atlanta commercial property insurance companies have a percentage monthly premium calculated from the rent charged. The size of office space rented is directly proportional to the insurance premium that a tenant is supposed to pay. If a tenant will be unable to pay this amount to safeguard their own interests, think about how hard it will be for them to meet your monthly rent requirement.