Tag: rental property

What to Know About Rental Property Insurance

On September 12, 2023

In Finance, Investing, Real Estate, W Darrow Fiedler

A key element of successfully managing a real estate investment is rental property insurance, sometimes called landlord insurance. No matter what kind of rental property you own—a single-family house, a complex of apartments, or anything else—having the proper insurance coverage is crucial to safeguarding your financial investment and offering peace of mind.

This guide will delve into the key aspects of rental property insurance that every property owner should be aware of.

Understanding Rental Property Insurance:

Rental property insurance is a specialized type of insurance. This insurance is distinct from homeowners’ insurance, designed for owner-occupied residences. Rental property insurance is tailored to address landlords’ unique risks and challenges.

Coverage Types:

Rental property insurance typically includes several types of coverage, each serving a specific purpose:

Dwelling Coverage: This covers the physical structure of the rental property, including walls, roof, and foundation. It is crucial for repairing or rebuilding the property in case of damage from covered perils like fire, storms, or vandalism.

Liability Coverage: This protects landlords from legal claims and lawsuits filed by tenants or visitors injured on the rental property. It can also cover legal expenses.

Personal Property Coverage: If you provide furnishings or appliances in your rental property, this coverage can protect them from damage or theft.

Loss of Rental Income: This insurance can pay for lost rental income throughout restoration if a covered incident renders your property uninhabitable.

Additional Structures: If your rental property includes other structures like garages or sheds, you can also add coverage for these.

Factors Affecting Premiums: The property’s location, its age and condition, the kind of construction, the existence of safety equipment (such as smoke detectors and security systems), and your claims history all affect the price of rental property insurance.

Landlord Responsibilities: Insurance companies often expect landlords to fulfill certain responsibilities to maintain coverage. These include regularly inspecting the property, performing necessary maintenance and repairs, and ensuring safety features are in working order.

Tenant Insurance: While rental property insurance covers the structure and your liability, it does not typically cover your tenants’ personal belongings.

Types of Policies: Rental property insurance comes in different forms. You can choose between basic policies that cover specific perils or more comprehensive policies that offer broader coverage.

Policy Renewal and Review: It’s crucial to regularly assess your insurance coverage for rental properties to make sure it still satisfies your requirements. As your rental business grows or changes, you may need to adjust your coverage accordingly.

Working with an Insurance Agent: Seeking guidance from an experienced insurance agent specializing in rental property insurance can be invaluable.

Rental property insurance is critical to managing a successful real estate investment. Understanding the different coverage types, factors affecting premiums, and your responsibilities as a landlord is essential.

Why Renting Is More Popular Among Young Adults Today

By W Darrow Fiedler

On May 16, 2023

In Investing, Real Estate

In recent years, renting has become increasingly popular among young adults. Many factors contribute to this shift in housing preferences, and understanding the reasons behind it can provide valuable insights into the evolving real estate market. These key factors have made renting more appealing to young adults today.

Financial Considerations

Financial flexibility is one of the primary reasons young adults opt to rent instead of buying a home. Buying a house involves significant upfront costs such as down payments, closing costs, and home insurance. The overall homeownership price includes property taxes, maintenance, and repairs. Conversely, renting often requires a smaller upfront payment and allows for more manageable monthly expenses.

According to an article published by MyMove, many young adults prioritize flexibility and prefer not to tie up their savings in a down payment. They may have student loan debt or other financial obligations, making renting a more feasible and frugal short-term option.

Lifestyle Flexibility

Young adults today often value mobility and the ability to explore different cities or job opportunities. Renting allows them to relocate quickly without the burdensome process of selling a home. Renters can choose housing options that suit their needs and adjust their living arrangements as circumstances change.

There is a strong desire for lifestyle flexibility among millennials. Many young adults prioritize experiences over long-term commitments and prefer the freedom to move as their careers or personal lives evolve. Renting allows them to adapt to changing circumstances without being tied down to a specific property.

Affordability and Market Challenges

The rising cost of real estate and stagnant wage growth have made homeownership less attainable for young adults. Property prices have outpaced income growth in many urban areas, making it difficult for young people to enter the housing market.

Young adults have faced numerous economic challenges, including stagnant wages, high levels of student loan debt, and an increase in temporary or gig-based employment. These factors have made saving for a down payment and meeting strict lending criteria more challenging, leading many young adults to choose to rent as a more viable housing option.

Renting has become popular among young adults due to various factors, including financial considerations, lifestyle flexibility, and affordability challenges in the real estate market. The ability to prioritize short-term financial goals, adapt to changing circumstances, and avoid the burden of homeownership has made renting an attractive option for many young adults today. As the real estate landscape evolves, understanding these shifting preferences can provide valuable insights for both renters and real estate professionals.

3d Printed Neighborhood Coming To California

3D Printed Neighborhood Is Coming to California

By W Darrow Fiedler

On April 16, 2021

In Finance, Investing, New, News, Real Estate, Uncategorized, Welcome

There is no doubt that technology and industry will continue to evolve in many forms. Many futuristic sectors are currently being developed. Initiatives such as the robotic and the internet of things are becoming more and more of a factor.

Another industry that is emerging very quickly is the 3D Printing industry. 3D printing is emerging in various aspects of society. It has become abundantly clear that 3D printing has become a part of the housing industry as well.

As hard as it is to believe, there is a desert in California set to become a neighborhood constructed entirely via 3D printing.

In this piece, we are going to examine this fantastic occurrence in greater depth.

The location of this potentially historic neighbor good will be the Coachella Valley. Thanks to a partnership between an organization specializing in sustainable real estate development and a construction technology firm, 5 acres of land will become a community of 15 3d-printed houses.

The construction technology firm is named Mighty Buildings. Mighty Buildings considers this project as a realized fulfillment of its vision for the housing industry’s future.

Mighty Buildings is based in Oakland and specializes in creating homes with the use of 3d printers that are pretty sizable.

The material used by the construction company is designed to harden instantaneously. Thus, roofing and insulation can be done in one seamless process.

Mighty Buildings can automate 4/5th of the home construction process while achieving cost savings in manpower. Their approach allows environmental waste to be significantly reduced.

According to the company’s chief sustainability officer, Mighty Buildings can build a 350 square foot home in a day.

The 3D-printed homes will have a modern look. All homes will be 1450 square feet and will consist of three bedrooms and two bathrooms. Also, each home can have another 2 BR/1 BA residence on the premises.

Each home will have a pool in the backyard. Individuals can opt for amenities such as hot tubs and fire pits.

Prices for the primary 3 BR/2 BA 3d-printed home start at $595,000. If one opts for a two-home setup with enhancements, the price is $950,000.

5 Ways to Add Value to Your Apartment Rentals

By W Darrow Fiedler

On November 28, 2016

In Investing, Real Estate

Adding value to your apartment homes will give you the opportunity to increase rent and show tenants you are available and willing to assist them with any need. There are numerous ways you could increase the value of your apartment homes. Here are five ways to do so.

1) Increase Rent 1-3% Annually

Make sure to stay on top of your competition. Research their amenities, apartments, and rents. You can even go for a tour of your competition’s apartments to see what they offer to their tenants. This will allow you to make educated assumptions of how much you can increase your rent. According to Blake Hilgemann of Time Magazine, “Make sure you know the rents in the area, researching sites such as Zillow, Rentometer, Craigslist, and the MLS if you have access. You may find there is plenty of room to increase your revenue a small amount each year (1%-3%) while remaining competitive.” With these tactics in mind, there are plenty of other ways you can increase the rent, as well, in such a way that will keep tenants with you instead of leave you for the apartment complex down the street.

2) Make Updates to Increase the Rent

Paint walls with neutral, earthy tones, and use accent walls to add a home-like feeling. These types of paints can add serious value to tenants. For new tenants, it will draw them in and will likely have them feeling at home just by entering the apartment. While with current tenants, it will show them that your are serious about increasing the value of their apartment homes. Replace aged appliances with new, stainless steel appliances. This adds a clean look that will add value to your tenants’ and future tenants’ apartments. This will likely have them willing to pay an increase on rent come the end of their annual lease agreement.

3) Add a Swimming Pool

Adding a pool to the property will pique potential tenants’ interests, as it is one of the first amenities tenants will want to check out.

Keeping a pool clean and chemically balanced is vitally important if you add a pool in your apartment community. Make sure to have it thoroughly cleaned weekly and have certain maintenance checks done daily, according to your pool guys’ recommendations.

4) Utilize Landscapers for Beautiful Curb Appeal

Keeping a landscape fresh and trimmed is an excellent way to add value to your apartment rental properties. Using a landscaper to do this for you will keep you in the seat of managing the property instead of doing it yourself and possibly wasting your time. This can be a great investment to draw in your audience.

5) Take Safety Precautions

Switch out utility equipment indoors and outdoors for increased safety. Keep outdoor lighting fresh and bright to light up the areas in which they touch. Lighting streets significantly reduces crime. Keep them on timers so that they come on right when it is getting dark. Make sure to change the timers with daylight savings times! Replace the bulbs with eco-friendly, energy-efficient bulbs to reduce costs.

Use bulbs that are around 2000-3000 kelvin to provide light that looks warmer and cozier for areas such as living rooms and bedrooms. Use bulbs that are between 3100-4500 kelvin for bathrooms to help wake tenants up in the morning and for work areas, such as basements. Use bulbs that are 4600 kelvin and above for security lighting outside and garages.

Hire a night guard to show tenants you take safety seriously. Wall in the community and install gates to enter and exit the community. You can even hire someone to screen incoming automobiles at the entrances of apartment communities for added security. These all help increase the safety and security in and around apartment communities.

These are all ways you can increase the value of your apartment rental properties and your profit at the same time. What ways have you increased your rental properties’ values? What are some ideas you would share with others? Tweet me @WDarrowFiedler with any questions or thoughts!