Landlord Liabilities: Protecting Yourself Financially

As a landlord, you are taking on a large amount of financial responsibility. Here are a few steps that you might want to take in order to protect yourself financially as a landlord.

Insurance

Whenever you are renting out a property, you want to make sure that you have the proper amount of insurance coverage. You will need to purchase a landlord insurance policy on the property. This is going to cover physical damage to the property as well as liability against injuries. If one of your tenants is injured on the property, this insurance policy is going to protect you from having to pay their medical bills.

Security Deposit

You will also want to make sure that you charger tenant some type of a security deposit. Spend some time in deciding how much to charge for the deposit. You do not want to make the deposit so excessive that it will scare renters away. At the same time, you want to charge enough that the deposit will cover most of the cost of repairs after the individual moves out. Consider the cost of replacing the carpet, repainting the unit, and facilitating some other basic repairs. If you can charge enough with the deposit to cover this amount, go ahead and do so.

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