When you decide to get into real estate, you should know that protecting your investment and assets is a very high priority. Depending on your business model, the types of investments you make, and where you make these investments, you might have to use a combination of a few strategies to protect your investment. Here are some of these strategies and the best ways to secure your real estate investment.
Focus on safety
Many landlords focus on their physical assets and forget that their tenants are assets too, because they bring the income that keeps the investment afloat. Landlords must, therefore, find ways to make their tenants so satisfied with the property that they want to stay.
One of the best ways to do this is to ensure the building or property is safe to live in. First, fix all physical defects with the property and have periodic checks to help you catch these issues. Second, install fire safety equipment like hoses, extinguishers and sprinklers. Third, ensure the property is as accessible as possible. Doing so helps minimise the chances of trips and falls, which are not only dangerous for your tenants, but are also a legal liability.
A focus on safety also means that if you were to file an insurance claim if anything happened to the building, the insurance provider would have little reason to deny the claim.
Get reliable insurance
Insurance remains one of the best ways to protect your investments in real estate. Remember that the type of insurance you get should align with the types of properties you own or manage. If you are investing in a home, you will need homeowner’s insurance. You will need business or commercial property insurance for commercial property and landlord insurance for rental properties.
Landlord insurance NI is quite comprehensive because it covers the building, the main investment, the tenants’ belongings, malicious damage or theft, loss of rental income and accidental damage insurance. To get the best landlord insurance in NI, use comparison sites that help you compare the cost of insurance and give you the ability to find quotes of bundled insurance policies. Such websites allow you to find the best insurance providers in your locality, notably Northern Ireland and the rest of the UK.
Have solid tenancy agreements drawn up
All tenants who rent any part of your building should sign a tenancy agreement. It should include details such as the names of everyone involved, rented units, details of deposits, responsibilities for utility payments, landlord and tenant’s responsibility and all other pertinent details.
A solid tenant agreement can help resolve disputes about payments, especially payments about utilities. They can also give you somewhere to start should you want to throw a troublesome tenant out or need to go to court for any issues arising between you and the tenant.
Real estate investments are usually expensive and a primary source of income for many investors. For these investors, protecting their investments is critical. There are additional ways to do so, but the three ways above are a great place to start.