Property Management Co. As Co-insured
Hi,
I am a newbee to the real estate investment, and I recently bought my first investment property, and working with a property management co. to get it rented. As part of the agreement, the property mgt. co. is asking me to add them as co-insured for liability insurance on the property. I assume the property mgt. co. should have their own liability insurance coverage.
Is this some thing normal every one does ? I highly appreciate if someone can elighten me on this.
Thanks,
TCS.
I am sure they have their own as well, but it is common for them to be named on yours. It should NOT cost much (if any) for them to be added to your policy as an Additional Insured...FYI.
[addsig]
Remind her you are the boss and have a system in running your bisiness. Further more remind her she is only renting and if she wants to dictate improvements she should buy her own in order to have full control.
Hi,
Offering reduced rent for not reporting problems is a VERY bad idea.
Basically, what happens is the tenant will NOT call you when there really is a problem (such as a leaky sink) because they do not want to lose their $50 (or whatever) cash discount. So you lose $50 each month and then after X number of months of leaking...you get to pay to replace a bathroom cabinet and/or subfloor.
Landlords have to become expert in thinking like a tenant (a renter) and NOT like an owner...trust me it is a very different thought process.
Bruce.
Tenants are like children. What is your response when your children whines at the check out line for a candy bar? If you say yes even one time, then they will whine more in the future. You must be pleasant but firm with your tenants. Your responsibility as a landlord is to keep the unit in safe and habilitable condition. I also believe that you must keep the unit close to the condition that it was when it was rented.
That nick in the floor was either there when they rented the unit or they caused the nick in the floor. Why would you replace it? Most of my rentals are older homes and when we do our first walk through I tell them that it is an older home and that I am responsible for the mechanical systems, appliances, and any safety issues but that the cosmetics are not being updated and that they have to be happy with the unit as is.
Perhaps a rent increase is in order......just kidding.