All Forum Posts by: Brian Malavsky

Quote from @Owen Rosen:

Quote from @Brian Malavsky:

Totally agree with everyone else and I didn’t see anyone mention an “Umbrella Policy” I just got quoted this week for $1,000,000 coverage for only $350/yr. These policies also cover you in all other areas of life like car accidents as well. Consult you insurance broker for specifics but I found this policy to be very protective and reasonably priced.

With regards to an umbrella policy they are typically good to have.  

That said, an umbrella doesn't have anything to do with the original question of the thread.  The poster was asking about broken/damaged household items and guests destroying a rental.  An umbrella has nothing to do with those circumstances.

I think some people hear umbrella and assume it's some sort of magical insurance that will protect them if anything goes wrong.  That's not the case.  It's designed to protect assets in the event of lawsuits, negligence, etc. and it only applies when there is underlying insurance coverage.  That's it.  It doesn't add layers of physical damage coverage or cover things that wouldn't otherwise be covered.

Agreed, didn’t realize that was the sole aspect of the question. Let’s leave the magic to the magicians 

Totally agree with everyone else and I didn’t see anyone mention an “Umbrella Policy” I just got quoted this week for $1,000,000 coverage for only $350/yr. These policies also cover you in all other areas of life like car accidents as well. Consult you insurance broker for specifics but I found this policy to be very protective and reasonably priced.

Thanks Jonathon! How far out do you limit bookings?

Quote from @David Walton:

@Brian Malavsky Yes, that’s exactly it. Where are the opportunities to make some additional revenue. Not sure if funds can be utilized in CD accounts or maybe just funding a high interest bearing account. As you know ancillary income opportunities in Colorado are diminishing as each new tenant landlord law passes. Just trying to get creative! 

Totally get that! Take what you can get man. I believe there are high interest bearing amounts that are similar to CD rates but they give you the flexibility of having all the funds available to you immediately. Of the tenant has to legally and rightfully break the lease you would have access to those deposits. I’m sure there are other creative ways to put that money to work  but I am on the more risk adverse side when it comes to deposits. I’ll be following this convo to see if anyone else comes up with ideas!

Quote from @David Walton:

@Brian Malavsky We actually have an attorney drafted lease that states the following "If the Landlord maintains the Deposit in an interest-bearing bank account, Resident consents to Landlord retaining the interest, except as required by law." We will always give back what is there's, however, per my attorney and our lease, we are okay to keep interest on security deposits. 

Sweet, didn’t realize you could do so. So what exactly are you asking? Are CD’s a viable option to invest short term?

To my knowledge security deposits are required to be in non-interest bearing accounts unless written approval from from the tenant. If they give you approval that interest must be returned to the tenant as you are just holding "their" money. Think of your account holding the deposit as a trust and you are the trustee. You have possession of their money but it is still their money, therefore any interest accrued is entitled to the trustor (tenant). Definitely consult your attorney on this one

Welcome! Great community here to network and bounce ideas off each other.

Quote from @Jeremy Jareckyj:

Quote from @Brian Malavsky:

Hey all,

Last summer I transitioned from a LTR to MTR in my house-hacked duplex. Got my first tenants (traveling medical) and they have renewed 3! Great tenants and will hate to see them leave but they must move on due to tax laws of working in a state for more than 1 year.

I'm asking what is everyone's experience with trying to squeeze in STR guests in between MTR tenants. Is the juice worth the squeeze?

I don’t anticipate there being trouble with finding another MTR tenant but in case there is a lag, I would like to limit vacancies.

Thoughts?

If you can squeeze in some STR bookings to fill in the gaps it is totally worth it!! just make sure to set your calendar accordingly so in future months you arent accidentally getting STR bookings and ruining your MTR chances

 Great reminder, thanks!

Thanks for the input! I decided to go full time STR through the summer and try to secure a MTR over winter. I break even with MTR rates at 75% ADR of comparables and 65% occupancy. So I figure it's pretty low risk considering occupancy is much higher here in Denver.

Oh good idea! I think that would help a lot. I could see the story of virtual staging or not also be dependent on asset class, price point, and market norms as well.