All Forum Posts by: Jordan White

Thinking of giving my tenants a small Christmas gift this year and want to know your thoughts.  More of a small "Thank You for your business" - thinking a $25 gift card for the local grocery store and a box of chocolates.  

Looking for positive or negative feedback from those who have done this in the past.

Thanks, Jordan

Hey Chivas, 

This quoted premium is unrealistic, you need to find a new insurance broker.  There are many insurance brokers who should be willing to help you.  Obviously the Replacement Cost coverage will bump up the premium but not to that extent.  The only thing I can think of is if the 4 unit property is not in the best condition or some other issue that the broker is placing it with a high risk market which would make sense to have the premium inflated to that amount.  Is the property insured as a second location on your home policy or on a stand alone policy?  Is it insured under a commercial form or residential form?  

If it were me I would get some quotes from a few other local insurance brokers or look for a new lender that will accept the ACV policy.

Hi Monica, 

You may want to just buy a used set either for each unit or install in a common area in the basement.  The cost of coin operated laundry and the time to go and collect the funds would outweigh the benefit IMO.  If you have onsite laundry for the tenants its a way to increase the monthly rent you are charging or added value to entice a tenant to stay long term.

Hey Eric,  I would suggest getting a quote to add the rental as a second location on your existing home insurance policy (be sure to disclose that this home is a rented dwelling).   I would also call a few local insurance brokers as they have access to many different markets and pricing will vary.  I would also suggest requesting coverage on a Replacement Cost basis and include Rental Income coverage based on the amount of rent you are bringing in.  Ask for the cost difference on the added liability coverage - generally it is not that much to increase this limit.  Lastly, I would suggest including in your lease that the tenants are required to carry Tenant Insurance through the term of the lease.

All the best!

Not disclosing that the home is a rented dwelling is considered Misrepresentation.  This will most likely lead to the insurance company denying any claim and registering off risk.  Getting insurance in the future will be tough as you've been cancellation for misrepresentation and you'll be placed with a substandard market.  

Lets just tell your insurance broker the truth and avoid all the potential issues.  Just as @Nathan Gesner stated, the insurance company needs to rate for the appropriate risk and you pay the premium based on the occupancy of the risk.   So if the home changes throughout the policy term (say from a rented dwelling to vacant or owner occupied) you need to advise your insurance company as this is a Material Change in Risk and the rating will be applied to the policy.   Just an FYI, you should be asking for the tenant to provide confirmation of tenant/renters insurance as some insurance companies require the tenant to carry this coverage - it's also in your best interest as the landlord for them to have it.

If you're feeling that the price is too high for the rented dwelling insurance you should shop around with a local insurance broker as they can compare prices with a few different insurance companies.  Don't just accept one quote, its in your best interest to shop the policy every so often as prices do fluctuate.

Hope this helps.

20% of 0 is still 0 - without them you would have no deal, the flip could be said to them where you're bringing the money.   It may be a great opportunity to get your feet wet/get into a partnership with a good group and when the next deal comes along you can renegotiate to have it spread out more evenly.    

@John Morgan What is the issue with the neighbors house?  Is it something you could approach them to ask if you can help tidy it up, cut the grass, paint a fence, etc.. out of the goodness of your heart ;)   It could possibly be a situation where it's someone on a fixed income that can't afford any addition costs or is not healthy enough to do the work themselves.  It could be a weekend worth of volunteering your time to clean it up and help you sell your property, who knows you may also get to know them and possibly use it as a contact if they want to sell in the future as it sounds like it my be a property that needs work/flip.  You did mention that the neighborhood is seeing a bit of growth and other homes being flipped, especially if you just flipped the home beside it.    

@Chris Roche I agree with the Vinyl as it is low maintenance... but, if you're looking for the cedar shingle look you can explore the higher-end vinyl sidings that imitate the cedar look.  Looks like cedar but is made from vinyl and provides the maintenance and long life.   Win-Win

Hey Brian, I agree with the chair rail idea, but if you want a finish that's consistent from floor to ceiling then you may want to just buy pine tongue and groove boards that are the full length.  You can paint them white, stain them or apply a whitewash.  Not sure of the cost but they are easy to apply and quick to tack on with an brad nailer.  

All the best!

You shouldn't forget about a good insurance broker.  Being able to meet the condition of insurance is required when trying to close.  Of course any lender is going to want to confirm that there is insurance in place to protect their investment in the deal.