We help real estate investors apply the best strategies to maximize their income in the Washington, D.C. rental market. One question we often hear from property owners is, 'Should I require my residents to carry renters insurance?'
In our opinion, as experts in full-service property management and community association management, the answer is, 'Absolutely.' In D.C., rental property owners can require all residents to maintain an active renters insurance policy. Before you become concerned about legal issues or losing quality renters who prefer not to have insurance, we'll walk you through why property owners should prioritize this critical form of renter protection.
Please note: This post is not a substitute for proper legal counsel and contains current information at the time of its publishing. When in doubt, it's best to reach out to the professionals at EJF Real Estate Services or obtain guidance from a skilled attorney.
One of the best perks of requiring renters insurance from every resident is that it doesn't cost investors anything. Some rental property owners and Washington D.C. property managers make it easy for renters to sign up for a policy by offering it as part of a resident benefits package. However, investors don't need to pay for policies to make sure their renters have this coverage.
The best way to make renters insurance mandatory is to include it with your qualification requirements during the renter screening process. By making it mandatory for every renter, investors avoid discriminatory practices while still complying with fair housing laws.
The cost of a quality renters insurance policy is often as little as a few dollars per month. It's well worth the expense for renters to secure this coverage and have a personal safety net if something goes wrong while living in your Washington D.C. rental property. Whether they experience theft of personal property or your rental suffers from a fire or extensive water damage that ruins your renter's possessions, the low cost of renters insurance can help them recover.
If you have long-time renters or deal with a hoarding situation, claiming property loss could be expensive. Investors don't need to deal with a renter expecting them to cover their personal property costs after a devastating event. Your insurance policies as a D.C. rental property owner don't extend coverage benefits to renters living in your rentals—even though residents might try to convince you that it does.
While you work with your insurance providers to repair your D.C. rowhomes for rent and make them ready for your renters again, residents should turn to their renters insurance provider to file a claim and seek property loss reimbursement.
Mandatory renters insurance shouldn't apply only to new renters during your screening process. For residents to renew and continue enjoying your rowhomes for rent in Washington D.C., they should maintain an active renters insurance policy throughout every lease term.
It's never too late to start requiring renters insurance for the residents in your D.C. rowhomes for rent. When it's time to find a new resident or renew a lease, EJF Real Estate Services can help you update your lease and navigate the renters insurance policies with your renters. We require it for every renter and every rental home.
Enforcing renters insurance is one of the best ways we work hard to protect your investments and income. However, it's not the only way we help you grow your portfolio in the D.C. area. You can learn more about the benefits of real estate investing with the aid of professional property management services when you download your free copy of our guide!