Best way to protect yourself from damage property?

Question

In your opinion, what will be the best way to protect yourself from tenants damaging your property? What is the best landlord insurance to prevent the damages from being excessive? I'm not a landlord yet, but I am going to become one very soon and need as much advice as possible.  Thank you for any tips or suggestions.

Michael Norris · Answer

I read a book by a couple guys in Philadelphia called The Section 8 Bible. They built up a portfolio of Section 8 houses and it has a lot of tips on what they did to set up the properties ahead of occupancy and how they screened for the best possible tenants. Even though you are not doing Section 8 there are probably some good tips in there for you.

William Brown · Answer

Prevention.

Vet your tenants, vet vet vet. If any red flags are thrown up throw their application in the trash. While you might pay for having to be patient in a couple months of vacancy, you will be paying a lot more in the long run if you rushed someone in or inherited a tenant and they ruin your place.

William Brown · Answer

@Curtis S.

Two notes…

1.) You should check if they have any previous evictions, what their job/income is, (rent should not make up 1/3 of it), and just simply google their name and see if anything interesting comes up.

2.) M2M Leases and Long term leases each have pros and cons. They both attract different types of tenants.

a.) Long term leases could be for say families who want to settle down for a couple years and rebuild their credit. However, if you and the tenant develop a crappy relationship off the bat you are stuck with them.

b.) Short term leases (M2M) Seem like they have more con then they do pro to me. Much more turnover, higher vacancy rates. Also, your tenant knows they won't be living there for long so they have no incentive to take care of it and treat it well. On the flip side, if they are bad, you can flush them out within the month.

Curtis S. · Answer

@ Greg, why month to month lease? How will that help?

Curtis S. · Answer

Thanks William. I've decided to use this service called "houserie" to handle some of my background checks.  It checks identity, criminal background, national eviction and credit summary. Is there anything else I should check for? I know I should check their previous landlords, job title (make sure it is reliable) and social media websites. What else should I check?

Thomas S. · Answer

Better to reject a applicant than to be forced to evict. You best protection is to have tenants ion M2M leases.

Best way to protect yourself from damage property?

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