According to multifamily data, it is becoming more and more common to require that tenants obtain and maintain renters’ insurance. If you don’t already, now is the perfect time to implement this policy. Multifamily data research shows that renters’ insurance can help both landlords and tenants. However, where do you begin with this process? Here’s a guide to requiring renters’ insurance from your tenants.
Multifamily Data Shows that Requiring Renters Insurance is Normal and Beneficial
If your tenants have renters’ insurance, you can reduce your insurance premiums and have additional coverage for your rental. Recent multifamily data shows that requiring renters’ insurance can reduce the risk of tenants suing you for damages. Unfortunately, many tenants are under the false impression that you’re required to pay for their personal belongings after a fire, flood, or other unexpected event. While this isn’t true, they may still attempt to take legal action against you. However, there’s no need if they have a renters’ insurance policy that covers their items. Therefore, it can help foster more positive relationships between you and your tenants.
Additionally, multifamily data indicates that more property owners are requiring their tenants to carry a renters’ insurance policy. This means that many of your tenants are already used to this stipulation. Therefore, you likely won’t face many, if any, issues when implementing this policy.
If you’re still not sure about requiring renters’ insurance, consider what the multifamily data research says. Multifamily data surveys show that 85% of landlords who require renters’ insurance say that the impact was positive or neutral, meaning that they encountered no negative consequences of requiring renters’ insurance. Therefore, the evidence shows that renters’ insurance is a great leasing requirement for both tenants and landlords.
How to Institute a Renters Insurance Requirement
So, how do you start requiring your tenants to take out a renters’ insurance policy? This process should be simple, as most renters are used to this practice and renters’ insurance is generally inexpensive. A great time to bring this up is during the showing or application process. This way, potential renters are well aware of the requirement before they sign the lease. Additionally, you may also want to send a reminder in writing, especially for current tenants who will need to re-sign their lease soon. This will give them ample time to find the policy that works best for them.
A more creative option that may work for your property is to pay for renters’ insurance yourself and add it to their rent. This may make it easier on your tenants and you can often go through the same insurance company as you do for your landlord’s insurance. With the right multifamily data, you can see what options your competitors use to require renters’ insurance to give you an idea of what renters in your area expect. This can help you personalize your requirements to your tenants.
At ApartmentData.com, we provide the most accurate and innovative multifamily data, leasing agent data, and marketing solutions in the rental housing market. We specialize in providing you with the information you need to achieve and maintain success in a competitive marketplace. Our team contacts every property in our database monthly to provide you the most up-to-date data on your competitors, recently opened or constructed properties, and changing market conditions. To request a demonstration of our advanced multifamily data reports, call us today at (800) 595-8730. We are here to serve you.