Tenant refuse to buy renter's insurance
I am a novice real estate investor. 4 months ago I bought my first property in Indianapolis with tenants in place. The property managed by PM company. The lease agreement required a tenant to buy renters insurance. They have never did it. Each time when I contacted PM about this matter I received a reply saying that they push tenants to get it taken care of, but nothing happened. Today PM told me that the only option is to send a perform or quit letter threatening eviction if not completed by a certain date.
Obviously I don't like the fact that they violate the terms of the lease contract and it makes me wonder what other points of the contract they violate.
Should I pursue compliance? What options do I have?
Thanks.
Most Popular Reply
Correct, every renters policy has liability coverage, most at least $100,000. Our office actually can work with investors or property managers to put together what I would call "forced-place renters insurance." Much like if you have a mortgage on a home the mortgage company will place homeowners coverage covering their interest in the home, you can purchase renters insurance on their behalf. Usually about $10-15 per month (paid on a monthly basis), and you just tack that onto their rent payment. So if rent is $600 a month, they owe $615. If they don't like the extra $15, tell them to send you a copy of their renters policy to get into compliance with their lease agreement.