If you manage multiple properties, you’re well aware that collecting on-time rent has always been a struggle. Whether the reason for late rent payments is getting lost in the mail, poor communication with tenants, the renter just doesn’t have the funds available for rent at the due date, or they simply forgot it, the bottom line is it affects your cash flow.
Here comes yet another Hurricane Season.
On August 5th, the Department of Atmospheric Sciences at Colorado State University increased its forecast for the 2020 Atlantic hurricane season to “extremely active.” According to their report, they predict “an above-normal probability for major hurricanes making landfall along the continental United States coastline.” Unfortunately, it only takes one storm to cause physical substantial and financial damage.
As you can imagine many factors come into play when determining the cost for insurance to cover a real estate portfolio. Knowing how these different factors play into each other can influence and strengthen your overall real estate investment strategy. It is important to note that every situation is different, but some there are some general rules of thumb to consider. If you’re on the fence about whether you should purchase a new property, estimating the insurance cost can help determine whether or not you move forward with the purchase.
When you are managing dozens, hundreds, or even thousands of rental units the concern of damage to your property that is caused by your tenants or their guests is ever-present. This concern only increases as your management portfolio grows. If there is unit damage it is often necessary to complete any repairs to the unit to keep it habitable. How those repairs are paid for can be approached in several ways, some less desirable than others.
Like most Real Estate Investors, you have invested a lot of time, effort, and money in choosing the best strategy and properties for your real estate portfolio. Whether your portfolio is still growing or you have a well-developed portfolio already it is important to keep those locations and properties protected to maximize your investment returns. Just like your business has evolved from the first property into a real asset, so do the protection needs.