Lease Protection Insurance (for landlords)

[Natasha Verela]

Im not sure if many of you know about this but landlords, you should consider lease protection insurance as part of your vetting process. I use TheGuarantors. Essentially, I invite the interested tenant to apply for the unit, set the rent and select the coverage I want (I usually do 24 months). The tenant  pays the premium at the beginning of the lease (I dont collect security- security deposit replacement coverage can be included). If the tenant defaults, you have to evict them. once you gain possession of the unit, you will get all back rent and submit a claim on any rent moving forward during the lease so as long as you try to re rent the unit. It also deters bad tenants. Yes you will have to carry the costs until eviction but it's better than nothing. Also tenants who know they are on the hook (insurance co will go after them via garnished wages, etc) they are less likely to prey on landlords, especially in tenant friendly states.