Insurance against lost rents

[G. Brian Davis]

Ever had to evict a tenant?

It takes forever, it’s expensive, and it’s a huge pain in the rear. When it’s all said and done you’re out thousands of dollars in lost rents, legal fees, and lost nights’ sleep.

You never want to go through it again. And you never have to.

We’ve started buying rent default insurance against all of our rental properties. It works like this: if the tenant stops paying the rent, the insurance kicks in and pays the rent until you evict the tenant and lease to a new renter.

Up to six months of rent payment.

It costs a few hundred dollars a year, based on the rent amount. Higher rents cost more to insure (duh).

Pretty cool, right? I’ve used it myself, and highly recommend it.

Happy rent collecting!

Brian

P.S. You can also reduce the risk of rent defaults by collecting rents electronically. Just sayin’.