Hi, I just wanted to make a step, even if that's reaching out to BiggerPockets podcast for the first time. I loved vacuum the truck. I'm thinking of moving in with a family member so I can rent out my current home two college students.
Well You must notify your insurer that it is for students . Failing to do so can be considered insurance fraud . Your rate will be much higher if they even allow for it .
You will need landlord insurance on the house you're renting out. I doubt students will matter one way or another, if you are talking about college students, but you can't claim a house is your primary residence for insurance purposes and then move and rent to other people. That is fraud. You should expect to pay somewhat higher insurance; most of my properties these days seem to be about 75 cents to a dollar per hundred dollars of appraised value, which would be say $500 or so on a house worth $50k, whereas my primary residence is about 40 cents or so per hundred dollars of appraised value. I'm sure the difference is the liability element.
My insurer absolutely would not allow student rentals . It will be right in the paperwork you sign and doing it anyway may mean your not covered if the place burns down ! This is more risk for property damage and the insurance company requires special policies for student rentals . I’ve been down this road and they are very strict about this . Many insurers I have heard about don’t even permit this much less offer a chance for a policy
Thanks for all of advice everyone.
Depending on the student demographic they can destroy your rental so make sure you have the right insurance
I agree with Caleb. After working in student housing, I would definitely make sure you are properly covered when you're renting to students. Depending on the type of students, they can do massive damage to your property. Good luck!
Interesting, my insurer (Farmers) didn't seem to care that I was renting to students, I informed them after the fact because I read some stuff on BP that some insurers have a problem with it. They just, said, "yeah, ok that's fine" no change to the cost.