We all pay for our homes. Whether as a renter or a buyer there are monthly payments made. When you own a property for rent, what protection do you have if your renter moves or abandons your property? Rent default insurance can offer financial protection when you find yourself in a position with unreliable tenants.
Here are three things rent default insurance can do for you.
1. Stabilize Your Income
Many properties have high turnover. That turnover is not necessarily a function of poor management or ownership. People move for a number of reasons.
When you have rent default insurance, you are paid for the tenants who choose to leave the home prior to the end of the lease or contract.
2. Cover Legal Fees
When a tenant leaves a property unexpectedly, a long process of trying to recoup the agreed upon rent from the lease can ensue. A rent default policy can help property owners cover legal fees associated with unexpected tenant move-outs.
3. Give You Peace of Mind
There are no guarantees in the business. That includes the ownership of rental property. A rental property can become a substantial headache with the wrong tenants in place.
A rent default policy can give a property owner a substantial peace of mind.
Ownership of rental properties can be an excellent wealth avenue. Holding the correct insurance can help.