Owning a rental property can be a lucrative business under normal circumstances. When tenants don’t pay on time or skip out on their rent, however, your business could lose a lot of money. Rent default insurance can help you recover some of the associated costs. For a relatively small monthly fee, you can protect yourself against this particular risk.
The first thing most property owners want to know is the rent protection insurance cost. It may seem daunting the amount of money to pay at first, but https://www.rentrescue.com/ outlines an effective way to absorb the cost. As the premium is a part of the expense of renting property, it makes sense to have tenants cover it in their rental payments. If a policy costs $300 a year per unit, for example, you can incorporate $25 a month into your tenants’ rent to pay for the protective cover.
The typical rent default policy can cover several different costs:
- Loss of rent payment due to a court order or eviction
- Loss of rent payment due to military deployment or death
- A portion of legal fees associated with pursuing an eviction
When you own rental property, it makes good business sense to protect yourself against rent loss. Rent default insurance can help make sure your income stays as constant as possible.