All Forum Posts by: Aaron Porter

Boat rentals are awesome and a great money maker. I have a LLC that I set up with a friend/partner and we rent out 2 wake surf boats with captains. If I was going to rent boats without captains I would definitely be looking into boats that are on the cheaper end something for fishing or tubing, pontoon, or maybe wave runners.

Whatever you do make sure that you have insurance coverage in place that will pay out if you have a claim.  Make sure that your insurance agent provides you with not just verbal assurance of coverage.  Get everything in writing and maybe even record your calls with your insurance agent.  (cover your butt as boating liability can get huge expensive)

I have not looked into policies at this point so I am unsure of what is available from the carriers that I currently have access too.  I am sure someone has a good product but it probably isn't cheap.  

to place an insurance policy on a property you have to be able to prove that you have in insurable interest in the property.   It sounds like you may need to take a couple of steps prior to getting a new insurance policy which would be getting with a RE attorney and getting the land title sorted out so that you can put a policy in place.  

If you are able to purchase an insurance policy right at this moment and you have a claim tomorrow the carrier will likely deny any claim that you try to process as they will be unable to determine what your insurable interest in the property is.  

From my perspective you need to get someone to do some legwork (ie attorney) and get your land title sorted out so that you can legally get an insurance policy on the property. 

At the end of the day it is still your property.  As such you are in ways still liable for whatever happens on your property. Make sure that your insurance company, not just your agent knows what is happening inside, on, at your property.  

If you misrepresent your property to your insurance company and you have a claim you will be denied coverage.  

consult with a RE attorney, have a really good lease agreement, make sure your tenant carries renters insurance on the property and some type of business liability policy that is going to cover you from their liability.  

Is the 3rd unit a legal unit?  This may be one of the issues that is causing issues and making the carriers not want to take the property. Instead of trying to find an insurance carrier find an Independent Agent who can shop mulitple carriers.  They will probably have an option that may work.  

definitely get with a real estate attorney and do your homework as to what will be the best solution for you.  

check out all the awesome information here on BP reading the blogs and other forum threads that have discussed these topics.  

This Blog post may be a good resource that will lead into more reading and education https://www.biggerpockets.com/...

@Bevaughn G Grey check out the blog posts here on BP https://www.biggerpockets.com/...

there is tons of information on LLC's, Land Trusts, and asset protection.

@Denise Harmening

It will be super beneficial for you to hire an attorney.  They will know where the suit needs to be filed. If the claim is larger than 5-10K it is too big for small claims to handle and will need to be processed through a different court.  

I understand that you have called a remediation company, but due to the holidays, and extreme weather that has been prevailing through the area, the remediation companies are also backed up. Hopefully you were able to get to the property and stop the water damage from going any further.

  The main thing is that your insurance is going to be your 1st line of defense, they will deal with who is liable as the claim gets processed, paid, and closed. Insurance companies don't stay in business by always accepting liability for things, they like to fight to get out of having to pay.  In this case your company will see it as their best interest to figure out who else is going to be liable.   

Hopefully you work with a good, knowledgeable insurance agent who is helping you with the process. 

@Gurjot Grewal 

My agency is licensed and sells in Ohio.  Feel free to shoot me a message and we can connect.

There is also another agent on BP who lives in Ohio.  I can't remember his name but if you do some searching around BP you should find him.   

Fixing the deck is a must and you shouldn't rent the house without that being addressed.  Way too much liability if you don't.  

Your insurance will need to be changed as you are turning the house (at least partly) into a rental.  

Pets are a personal decision, you can increase the rent by $50ish/ month and keep that but they also create lots of noise, almost always have accidents in the house destroying flooring, tri and doors, and create extra messes that have to be remediated when tenants move out.  

You can split utilities 50/50 or include utilities in rent and just charge a rental rate.  If splitting, you may have to provide proof to tenants of what the utility costs are to justify and get them to pay the extra $$ above rent.  

Limiting access to the backyard is a non issue.  Just include it in the lease, and know that limiting access to the backyard makes having pets harder for the tenants

Having a property management company will limit access to you, the landlord, from your tenants.  But it will also cost a portion of the rent that you receive.  If you go the pm route thoroughly read through the contract and make sure you understand it and that they are in line with what you expect from your managing team.

 

Shopping your Insurnace straight to a carrier will almost always result in you getting pushed over to your closest agent most of the time that agent is a regular run of the mill homeowners agent who doesn’t really know. Instead maybe think more I want to work with a professional who knows, understands, and has options for carriers. 
If your agent tells you that a standard homeowners policy will cover your rental get it in writing because the carrier will deny the claim and you will have to go after the agents E&O insurances to pay out.
Almost every company offers a policy that will cover a mid term rental. It will depend on about 15 different factors as to which is the best suited for your property right now. 
city, county, state, flood zone, age of property, age of major mechanical, electrical, plumbing, and roof, landscaping, type of rental, ACV vs RCV, are you bundling with other properties or your auto, and others all go into finding a good carrier.