Landlord Lease Agreements and Insurance

The Mortgage Buddy would like to welcome contributing author Charles Downey to the site. Charlie Downey is the President & CEO of the Downey Insurance Group which services all of New England via their Marlborough Massachusetts office. Established in 1928, in a small office in downtown Marlborough, Downey Insurance has grown for over 70 years to its present location. Now one of the oldest insurance agencies in Marlborough and three generations later, they have gained the experience necessary to be one of the best full service insurance agencies in the area. With the spring housing market right around the corner, the Mortgage Buddy has been directing its’ focus on providing information to potential real estate investors, and as with all wise investors the aim of potential landlords should be to maximize the investment while at the same time managing the downside risk. For that reason, it’s essential for today’s real estate investor to have the security of the proper insurance coverage and a company they can count on. Downey Insurance is that trusted “Mortgage Buddy Approved” insurance company you can turn to with confidence to protect and grown your real estate investments.

Risk Management for your Rental Property:

Sample Lease Agreement
  • REQUIRE they Purchase tenants Insurance & show you a copy of the policy!: This policy is super cheap for the coverage. ( covers their personal property & their personal Liability – make sure the minimum they purchase is $500,000)  For the landlord, It puts a layer of Liability  between you and the tenants friends, Post office, other visitors, etc.  to your property.
  • “ The Broken Window” theory says, that in a neighborhood were a broken window shows up, and is not fixed, it attracts other windows to be broken and so on.. it speaks to Blight / maintenance. Before re-renting have a painter go in to do touch up. It will help your new tenants to feel like they live in a nice clean apartment and to help maintain their abode. Bang for the buck.
  • If it has been a while, have a building inspection completed. An inspector will know exactly what to look for and will advise you how to fix any problems that may arise. He’ll provide a checklist to make sure your place is up to code.  He can also be a great resource for other professionals in the area that may help resolve any issues your rental property has.
  • If you do not have an inspector come in, do your own inspection. Check the plumbing to make sure nothing is leaky or broken. Test all the electrical outlets to make sure they are working properly. Walk the perimeter of the property to see if any trees need pruning or sidewalks need repairing. Clean the gutters to ensure proper drainage. Look for where Ice Dams will form and remediate before they happen.
  • Once all the big problems are fixed in your rental, move on to the smaller things. Mow the lawn – service. Clean the gutters Sweep the floors. Replace any broken blinds or shades. Have a team of trusted contractors in place that you have pre-screened and reviewed references for. Have a couple for each task
  • Review your rental property insurance: make sure you have loss of rents, replacement cost coverage, tenant relocation and that all your credits are up to date. ( smoke detectors, central station, etc.)Bundle your Policy
  • Your lease agreement should require that your tenants Hold you Harmless. Even if it’s a tenant at will, have an agreement signed. They have to have  / maintain insurance and hold you Harmless. When you have questions or concerns about your insurance give us a call at Downey Insurance Group. We are very well versed in these matters throughout new England. We can certainly help get you the right insurance, of course, for the right price.

When you have questions or concerns about your insurance give us a call at Downey Insurance Group. We are very well versed in these matters throughout New England. We can certainly help get you the right insurance, of course, for the right price. Download our new Mobile app to stay apprised of Insurance matters, File claims, reminder services, Weather alerts, etc.  available for Android and Apple devices in the Google Play Store or in the iTunes store.

Charles I. Downey, President
Downey Insurance Group
Downey Financial Group
Corporate Ma. Address:
190 East Main St. / Po Box 570
Marlborough, MA 01752
P 508-485-0130 | F 508-485-6463
Charlie@Downeyinsurance.com
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