Studies have shown that the longer a poorly paying or non payment tenant stays in a property, the greater the chance they do purposeful significant damage to the property.  

But for a stabilized Class B multifamily in this market, for example, my bare minimum would be 10%, "depending" on how much brain damage the building caused me (even though I use a management company) and what the appreciation potential is (which I never assume more than the rate of inflation, tops) etc.  12%+ is what I'm after.  

At the same time, housing operators are havingto repair damaged units while insurance costs spiral ever higher.Thebottom line: Revenues are falling while expenses are rising.Thereare no quick remedies.

Approval for extra pets, yes: I have multiple statements about "and damages by guests, XYZ caused by guests, performed by guests, etc."  

If the tenant causes damage to the property, does builders risk provide adequate coverage?

What if Tow Truck Tommy bangs up one of the other residents' cars while towing it out of the lot or towing it back to the lot, or damages the towed vehicle????

Hello Ethan, I think that you can research on Air BNB and VRBO to see if there any existing STR in your area to begin with. 

Example:1 -Single family - central air already installed when I purchased & I provided washer & dryer units. 2- Duplex - no central air installed and washer & dryer units are provided by the tenants.

If you owned a property with a broken stairwell where someone trips and falls, got incapacitated for life, why would their damages be restricted to $170K.

(a) If the Company establishes the title, or removes the alleged defect, lien orencumbrance, or cures the lack of a right of access to or from the land, or curesthe claim of unmarketability of title, or otherwise establishes the lien of the insuredmortgage, all as insured, in a reasonably diligent manner by any method, includinglitigation and the completion of any appeals therefrom, it shall have fully performedits obligations with respect to that matter and shall not be liable for any loss ordamage caused thereby.. . .To the extent that you are requesting compensation for the Alleged Damages, please see Condition8(a) of the Policy which provides the Company with the right to establish title as insured in areasonably diligent manner without being responsible for any loss or damage to the insured.