All Landlord Rental Property Insurance

Update Sept. 01-2009 All About "Landlords Rental Property Insurance" Information By Insurance Experts

2010-08-31T12:33:00.000-07:00

Landlords rental property insurance is defined as a policy to cover a property owner from financial losses connected with their property which they let out. Mainly a landlord insurance policy will cover the building itself with the option of including the contents left within. It covers standard perils such as fire, lightning, explosion, earthquake, storm, flood, escape of water/oil, subsidence, theft and malicious damage. Each insurance policy is different and may or may not include all these items. Most companies will provide the option to have extra cover on top of what is considered the standard cover. These may include things such as accidental damage, legal protection, alternative accommodation costs or rent guarantee insurance.

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Buy to Let Landlord Insurance and Standard Home Cover
By Richard A Burgess

If you purchased your let property as a buy to let, you may see it purely as a business investment. However, if you have rented out a house you used to live in, it may not be immediately apparent that you need specific buy to let landlord insurance.
However, if you let your property and subsequently have to claim on your insurance policy, you may find that the insurer may refuse to pay out if you have not notified them of the change in the nature of the occupation.
How does standard home cover differ from landlord's insurance?
Buy to let landlord's insurance may be different from standard home cover because the risk profile of a let property may be deemed to be different.
What happens if the property is empty?
If the property falls empty, whether you are a landlord or an owner-occupier, you may need to inform your insurers if it is vacant for 30 days or more. This is because the nature of the property changes again in the insurer's eyes, because it becomes an unoccupied property which then needs unoccupied property insurance.
Vacant property may be more at risk from vandalism, and may also suffer more than occupied property from damage caused by fire or flood. The sooner fire or flood damage is repaired the better, but the trouble with a vacant property is that by definition there is no one on site to deal with these problems or call for some help.
What else do you have to consider?
Whilst buy to let landlord insurance may be different in some ways to standard home buildings and contents cover, there are some similarities. For example, you may wish to consider:
what terms and conditions there are. Some insurers may insist that property owners must fit certain door and window locks to show that they have taken steps to prevent break in;
what exclusions and limitations there are. They may be particularly pertinent if contents are included, as some insurers may have limits on the amounts that can be claimed for single items; and
what the claims procedure is. Whilst the best case scenario is that you never have to make a claim on your buy to let landlord insurance, it may be a good idea to keep the documents to hand just in case!
Richard Burgess is Director of cover4letproperty ( http://www.cover4letproperty.co.uk ) a dedicated UK landlord insurance broker. Their easy to use site and friendly staff will get you multiple quotes from specialist insurers for landlord insurance at a competitive price.

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Article Source: http://EzineArticles.com/?expert=Richard_A_Burgess

Update August 15-2009 All About "Landlords Rental Property Insurance" Information By Insurance Experts

2010-08-14T05:33:00.000-07:00

By Richard A Burgess

If you purchased your let property as a buy to let, you may see it purely as a business investment. However, if you have rented out a house you used to live in, it may not be immediately apparent that you need specific buy to let landlord insurance.

However, if you let your property and subsequently have to claim on your insurance policy, you may find that the insurer may refuse to pay out if you have not notified them of the change in the nature of the occupation.

How does standard home cover differ from landlord's insurance?

Buy to let landlord's insurance may be different from standard home cover because the risk profile of a let property may be deemed to be different.

What happens if the property is empty?

If the property falls empty, whether you are a landlord or an owner-occupier, you may need to inform your insurers if it is vacant for 30 days or more. This is because the nature of the property changes again in the insurer's eyes, because it becomes an unoccupied property which then needs unoccupied property insurance.

Vacant property may be more at risk from vandalism, and may also suffer more than occupied property from damage caused by fire or flood. The sooner fire or flood damage is repaired the better, but the trouble with a vacant property is that by definition there is no one on site to deal with these problems or call for some help.

What else do you have to consider?

Whilst buy to let landlord insurance may be different in some ways to standard home buildings and contents cover, there are some similarities. For example, you may wish to consider:

what terms and conditions there are. Some insurers may insist that property owners must fit certain door and window locks to show that they have taken steps to prevent break in;
what exclusions and limitations there are. They may be particularly pertinent if contents are included, as some insurers may have limits on the amounts that can be claimed for single items; and
what the claims procedure is. Whilst the best case scenario is that you never have to make a claim on your buy to let landlord insurance, it may be a good idea to keep the documents to hand just in case!

Richard Burgess is Director of cover4letproperty ( http://www.cover4letproperty.co.uk ) a dedicated UK landlord insurance broker. Their easy to use site and friendly staff will get you multiple quotes from specialist insurers for landlord insurance at a competitive price.

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Article Source: http://EzineArticles.com/?expert=Richard_A_Burgess

Update July 29 -2009 All About "Landlords Rental Property Insurance" Information By Insurance Experts

2010-07-28T08:39:00.000-07:00

For anyone who owns a rental property they know that finding a good tenant is key to a successful income unit. Well that can also be said for having the right insurance in place in case something bad happens which it inevitably will. In this article I will explain what landlord insurance is and what it will cover in the event of a loss.

Landlord insurance is very similar to homeowners insurance but it is a different policy with greater coverage for those who use the property for rental income. There are many different types of landlord policies but the main point is that you must have a policy designed for rental properties or you may not be covered completely. Here is a list of commonly found coverage on a homeowners policy:

Dwelling Property - Also known as building coverage, it covers many types of damage done to your home including hail, wind, and vandalism.
Personal Property - Usually based on a percentage of the building property, it covers loss or damage to items like clothes, electronics, and furniture.
Liability - Pays when you are legally liable for someone else's bodily injury or property damage resulting from accidents. This includes costs to resolve claims or defend lawsuits brought against you.
Medical Payments - Rarely used but on most home policies this will pay for medical expenses for people injured at your residence regardless of liability.
Additional Living Expenses - When you are forced to live elsewhere while damage is repaired to your home this will pay for additional expenses commonly up to 24 months or a specific coverage limit.

The items listed above are usually covered under most comprehensive homeowners policies but there are items that need special coverage or have different use on a landlord insurance policy. As you can imagine there are different things that can happen when you rent your property versus living in it. This can expose you to more liability and perhaps more severe damage due to not being there to mitigate immediately. In addition to the coverage listed above here are few important differences or additional coverage items on a landlord policy:

Loss of Rental Income - This replaces "Additional Living Expenses" and is used when a loss forces your tenants to move out while damage is being repaired. The loss of rental income during this period is covered.
Landlord Liability - This is similar to liability protection on a homeowner policy but if you don't have landlord policy your insurance carrier could deny your claim as you did not inform them the house was rented to others.
Water Backup - Water is a homeowners worst nightmare especially if you don't have water backup coverage. Most standard policies will not cover a backup from sewer systems so this coverage is vital.
Identity Theft Protection - Some insurance companies offer this as an additional coverage. This is the fastest growing crime worldwide and you as a landlord need protection. Id theft protection can cost as little as $8/mo.

Being a landlord can be very rewarding but also carry many new challenges for homeowners. Be sure to talk with your insurance agent about the right type of policy for you. Remember that you must notify your insurance company that you rent your home so they don't have the ability to deny a claim you file on a rental property.

Get more information on landlord insurance and a fast way to get multiple quotes from leading insurance companies at my site. If you want to review identity theft protection companies check out this review site for in depth comparisons.

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Update July 11 -2009 All About "Landlords Rental Property Insurance" Information By Insurance Experts

2010-07-10T17:51:00.000-07:00

By Edward Groninger

One the easiest and fastest ways of making one rental property insurance policy CHEAPER, is simply to remove, or not to offer, the loss of rent to the landlord. This one coverage alone could be the difference between bankruptcy or profit on your rental property. Worst of all, it cost only pennies of day on your insurance premiums.

Here is a great example:

Imagine your four unit apartment building, the lowest tenant, teenager is making French fries with some friends and forgets about the fries for just a minute or two. The next thing you know you have a moderate to average kitchen fire. Everyone gets out, nobody is hurt but you do have some and a ton of water damage thru all four units of the building. The fire fighters, are more concerned about getting the fire out than the damage they cause and you have carpet, water, smoke, fire damage just everywhere. From roof to basement it is just one big mess.

Not to worry, you have insurance that pays for the fire and the clean up but you did not buy the loss of rent coverage, or you have some but not enough, (most policies that offer loss of income never have enough of it for a rental property). Now not every contractor is going to drop everything they are doing to jump on your job, you need wait. You wait for the adjuster, the fire marshal, the contractors, the bids, the building permits, the workers, the weather. A two to three month job takes five to six months.

So six months later the repairs are done, the apartment unit looks great and your previous tenants are gone. They needed someplace to live and could not wait around for you, even if they did, what about all that loss of rent for the last six months. What rental property owners forget is that the bank does not wait for their mortgage payment, they still want paid while the building is being repaired. Also you rely on that income for your own needs. You don't want to volunteer your profit for six months and why should you.

This is where los of rent comes in at. It pays you what you would have been receiving if the apartment never had the loss. You still get paid while all the repairs are being made, you still have money coming in to pay the mortgage bill, the property tax etc. Of course, you still get paid the profit you would have made so you can pay your own bills.

Loss of rent is vital to your rental property insurance package. One make sure you have it, then make sure you have enough of it. What is your monthly total rent for the apartment building, times that buy a minimum of nine months. That is the least amount that you need. Best of all, it is probably the cheapest coverage on your Rental Property Insurance policy to increase or to add. It literally cost pennies a day and is the difference between bankruptcy and profits to you.

If you are looking for Rental Property Insurance and its contents, look no further than a quality quote from Groningerinsurance.com. Your Pa Rental Property Insurance We specialize in insurance for your rental property.

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Update June 21 -2009 All About "Landlords Rental Property Insurance" Information By Insurance Experts

2010-06-21T06:16:00.000-07:00

By Edward Groninger

There are two different ways that rental property owners can insure their rental properties. Each possesses its own challenges and rewards. In order for you to make a educated decision on your rental property insurance you need to know the pros and cons of both. Here we will discuss the Market Value Approach.

Market Value:

Or Actual Cash Value: Some insurance companies will allow you to insure your rental property with the market value, which is what you would sell it for on the open market. Actual Cash value is replacement cost minus depreciation. There are several computer programs available to find out this number and all insurance agents have access to them. The most popular one is by Marshall & Swift.

Pros:

The pro's to this is that you can purchase a older home in maybe a lower value area of town for a fraction of what it would cost to rebuild it today new. We all have those huge three course brick home with ornate wooden trim, hardwood floors that are no longer in the "in" section of town. The cost to rebuild such a home might be $500 -$600,000 thousand dollars, however the market value is only $125,000. Using the Market Value or Actual Cash Value lets you insure for a much lower cost, thus hoping for a much lower premium. The thought here is that if the home burns to the ground you would simple remove the debris, and sell the open lot and use the insurance money to buy or build someplace else.

Cons:

The cost savings on the insurance premiums for your Rental Property Insurance, normally is not worth the effort unless you get the market value to be at least 50% of the rebuilding cost. Otherwise the premium difference just isn't worth the downside. The biggest downside to this approach is a partial fire. Lets say the kitchen burns causing smoke damage and partial foundation damage to the house. Kitchens, especially to match a older old are very expensive, not to mention all the smoke and water damage. Now count in a little foundation problems or a larger fire walking up the walls and into the attic and now your stuck. You have a large protion of the building damaged and not enough insurance money to really fix it. Lets say the contractors cost are in the example above are $140,000, you insured it for $125,000. Now you have to pay the demolition cost to remove the entire building both good and bad, clean up and backfill the hole and you walk away with just the empty lot and $80-$90,000 dollars. However - here is the kicker, you still own the bank the $125,000. Your short. You either have to declare bankrupt if you incorporated or sell another asset to come up with the difference.

Bottom Line:

Beware of the Market Value type of policies for your Rental Property Insurance. The premium might be attractive but there are some serious downsides you need to consider. Talk it over with your agent. Have him give you a complete analysis of the pros and cons and now you can make a better informed decision.

If you are looking for Rental Property Insurance and its contents, look no further than a quality quote from Groningerinsurance.com. Your Pa Rental Property Insurance. We specialize in insurance for your rental property

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Update May 31 -2009 All About "Landlords Rental Property Insurance" Information By Insurance Experts

2010-05-31T04:51:00.000-07:00

By Kirthy Shetty

Effective and most systematic way of handling rental data, repairs and renovations, buy to let property insurance policy dates and its payments, renewal of agreement is with the help of rental property software. It is easier to track tenant payments, and any policy expiry dates.

It allows you to collect tenant's data and maintain it too. Handling data and maintaining it may be difficult. With an effective software you can create auto form generation and track all tenant's payments in a systematic manner. You are also reminded about your monthly payments of multiple tenants.

Your income and expenditure will be easily trackable and thus it helps to plan your finances wisely. Irrespective of the number of rental units you have, there is still a wider scope. Multi units of buy to let property can still be managed effectively. Accounting reports can also be generated and easily maintained. You can even send form letters to tenants, owners or any other contacts. Create any number of account registration and still be able to handle them in the same efficient manner.

Any landlord may find it tedious to handle too many multi buy to let units. They have to know how to consistently maintain properties. Find the right tenant for the right property. Need to manually check for the due dates of insurance policies. Need to calculate rent dues and arrears may be a difficult task when you have to deal with a lot of tenant accounts. Now, there's a breather in the form of property software.

Kirthy Shetty:
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Update May 12 -2009 All About "Landlords Rental Property Insurance" Information By Insurance Experts

2010-05-12T05:52:00.000-07:00

By R Quade

If you're a renter or are getting ready to move into a new apartment or rented home, then you might be wondering why some landlords actually make you have a tenant insurance policy. Some people even wonder whether or not it's legal for landlords to require such a policy. Well, this is, in fact, legal, and it's a smart financial and liability move than many landlords make with their tenants. There are a few different reasons that your landlord might require you to carry this type of insurance.

For one thing, carrying insurance shows that you are somewhat responsible. The world of insurance is a very adult sort of world, and in order to get insurance, you have to be responsible on some levels. Many landlords who only own one or two rental units and can't afford experiences with bad tenants will use the fact that you have an insurance policy as a sort of character assessment that will play a part in whether or not they rent to you.

Also, landlords require you to have a tenant insurance policy because it's simply a smart thing for them to do. When you're dealing with rental property, things can get very complicated, so there is usually more than one type of insurance taking place in one piece of rental property. A landlord will have insurance on the actual structure you're renting as well as on any property that she owns there - such as a fridge, a washer and dryer, or furnishings - but that doesn't mean that her insurance will cover damages that you cause.

Plus, even if your landlord's insurance policy will cover damages that you create on the property, the landlord will be better off if your insurance policy covers some of the damages. If, for instance, you light a candle that results in the burning of some furniture, your landlord's insurance costs will go up if her landlords insurance has to pay for all the damages.

Good landlords also know that tenants with insurance will be happier tenants because if something happens to the apartment building, they will be able to replace their belongings. The landlord's policy only covers the building, so you need your own insurance to replace any belongings that you have in a building. So often tenants try to get money from landlords to replace their own belongings, so many landlords simply do away with the hassle by requiring renters insurance.

RentersInsurance.net provides US consumers with the opportunity to shop online for tenant rental insurance. Visit RentersInsurance.net to find the best insurance quotes.

Update April 17 -2009 All About "Landlords Rental Property Insurance" Information By Insurance Experts

2010-04-17T08:09:00.000-07:00

By George McGonigal

As a landlord, insurance is simply something you must have. Insurance protects your property, the tenants within your property and your wallet. If you want to get a good deal on landlords insurance, the best way to do so is to search high and low for it. Inexpensive landlord insurance will adequately cover your property and your investment while being budget friendly all at the same time. Here are some tips for obtaining reasonably priced insurance for your rental property.

Inclusive Yet Reasonably Priced Coverage

The first tip is to be on the lookout for not only cheap insurance policies but ones which cover your investment properly. The policy coverage for your rented home or business building should include all of the necessary coverage components like fire, theft, liability and more but be offered at a discount price. Never sacrifice quality for a deal on the annual premium as it simply is not worth it.

Landlords Insurance Plus Homeowners Insurance

Try to obtain a landlords policy which can be grouped together with your other policies such as your individual homeowners insurance policy. Insurance companies like customers who choose them for all of their insurance needs and are willing to give you a good deal when you do so. By acquiring collective insurance policies you can give all your business to one provider, which makes payment easy, and get a deal as well.

Contact Different Insurers

Should you decide to not choose a current insurance provider for your landlord insurance, you will need to shop around. When you shop around at the different let property insurance providers make sure that you contact a variety of insurance companies and not just one or two. This will give you a wide range of prices and policy options so that you can pick the best from the bunch.

Finding cheap landlords insurance is definitely easily achieved and you can do so quickly and efficiently if you research the different options ahead of time.

George is the Webmaster of http://www.euroferret.com which is a specialised insurance and finance directory. Why not visit us for cheap landlords insurance online today.

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Update Mar. 21 -2009 All About "Landlords Rental Property Insurance" Information By Insurance Experts

2010-03-21T07:45:00.000-07:00

By David Stiehler

Most landlords try to screen their potential boarders but even if you do this, you can't make a full assessment of their personality with just a simple interview. Sure, you can do a background check on them to make sure they don't have any criminal records but you can't really gauge how capable they will be in taking care of your home.

This is why it is an excellent move for any landlord to take out a house insurance policy for the homes they are renting out. Even if the tenant turns out to be a careless slob who leaves stains everywhere or constantly leaves the doors unlocked, practically inviting robbers inside, your home will be protected against any damages they may make.

Typically, a rental house insurance policy will not cover the furniture and other items inside the house since those belong to the tenant. If anything gets stolen, it will be their loss and you will not be liable to them since your house insurance only covers the actual structure and fixtures in the house.

An issue you need to clarify before taking out a rental house insurance policy is whether the home will be left vacant for long periods of time. Usually, house insurance coverage will not include damages or losses that occurred more than 30 days after the house has been vacant.

This issue could be a big deal for landlords because some tenants might leave for a long summer vacation without informing you, leaving the home unoccupied and uncovered by house insurance. Another situation is when you are between tenants. There could be slow seasons when it will take a long time to find new tenants after the previous occupants have left. To avoid these situations, you can find house insurance policies that allow up to 90 days for your home to be vacant.

Many rental house insurance companies will be interested to know about the people who are renting your home. If the occupants are a homely middle-aged couple who regularly attends Thursday night bingo, you will probably be able to get excellent coverage on your house insurance policy. However, if your tenants are members of a college rock band who are more likely to go on a destructive rampage, you will surely have a difficult time finding a company to give you a decent Homeowner Insurance Guide coverage.

Of course these are extreme examples but you get the idea. More damage means more claims and more claims means more cash out for the insurance company. In fact it means more cash out for you as well because will have to shoulder the excess from your claims.

To summarize this all, you just need to find the right house insurance policy for your rental home and you can make your rental business grow in no time.

You can also find more info on Homeowner Insurance Company. Homeownerinsurancebliss.com is a comprehensive resource which provide information about home insurance.

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Update Feb. 28 -2009 All About "Landlords Rental Property Insurance" Information By Insurance Experts

2010-02-28T05:17:00.000-08:00

By Patrick Mahen

Do you own or plan to own a rental property? If so this guide will show you the most important aspects of landlord insurance and some often overlooked coverage. Let's face it; you don't own a rental property because you enjoy dealing with tenants. Your bottom line is profits and asset appreciation right? The cost of owning a rental property can be overwhelming when you consider the mortgage payment, insurance and unexpected maintenance. If done properly you can have a profitable source of income for years to come but there are risks involved.

Being a landlord involves many risks including asset depreciation, destructive tenants and unexpected maintenance. Some of those risks can be contained with a proper landlord insurance policy. Most people don't understand the difference between a standard homeowner's insurance policy and a landlord policy. While most of the coverage remains the same there are distinct differences between the two.

When I sold insurance most of my customers did not understand why they needed to have a different policy when renting out their home. This is a common issue when someone decides to rent out the home they have been living in for sometime. Initially they purchased homeowners insurance but now they have tenants in that home so what do they need. The number one reason why you want to get a landlord insurance policy is so that you are properly covered in the event of a claim. If you don't change the policy when you begin to rent the property any claim can be denied by your insurance company for failure to notify them of the change in status.

Here are two coverage's that a landlord policy includes that is vital to your rental property business:

Liability Protection

While a standard homeowner's policy includes liability protection it is not meant for landlord liability. Take for instance a tenant who causes a fire to your condo unit which damages two other units attached. The other condo owners can file suit against you for the damage to their property. If you don't have a landlord policy your insurance company may not cover you based on the intended use of the condo. Most landlord policies will provide anywhere from $100,000 to $1 million in liability protection. Always opt for the higher coverage as it is only a few dollars more per year.

Loss of Rental Income

Most landlords rely on having tenants paying each month in order to afford the mortgage on a property. If the unit were to become unlivable due to a fire your tenants would have to move out and you would not have that rental income while the unit is being fixed. This is where loss of income coverage is so vital to your business. You can be reimbursed for any loss of rental income you suffer up to your policy limit during the time it takes to repair or rebuild.

I hope this article helped you understand why it is so important to have insurance for landlords. If you want to compare insurance rates from top companies in minutes click here.

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Update Feb. 08 -2009 All About "Landlords Rental Property Insurance" Information By Insurance Experts

2010-02-08T03:23:00.000-08:00

By Edward Groninger

Insurance can be confusing; most clients don't know the different type of policies, and coverages so they simply end up buying on price alone. This can be disastrous especially for Rental Property Owners. When there is a uncovered claim that ends up costing you thousands of dollars out of your own pocket only then do you realize that buying on price only is disastrous.

Chose An Agent Who Specializes: Always buy from an agent who specializes in rental properties. Each company has its own differences, cost structure and appetite. You need an agent who knows which policy suites your property the best, giving you options on choosing coverages and costs. You need an agent who can shop several LEADING carriers for you getting you both the best price and coverages that you deserve.

You wouldn't go to a foot doctor for a tooth ache, why go to a auto insurance specialist for your rental property needs. Theirs is a reason why doctors, lawyers and insurance agents specialize in different parts of their fields. Don't you deserve a specialist.

Take Advantage Of Credits Up To 25%: Most clients don't know that they can get credits from their insurance company simply buy asking. Depending upon the condition of the property (the newer the updates the better), your loss history you can be entitled to credits, up to 25% off your premiums. But you have to ask, or should I say your agent has to ask for you. Again, an agent who specializes in rental property insurance should be fighting to get you the credits your property deserves.

Always Get A Form 3 Policy Whenever Possible: You can purchase a Form 1 (Basic) a Form 2 (Broad) or a Form 3 (Comprehensive or Special) each having different coverages and premium amounts. Based on price and condition of your property you might only be offered a basic or broad coverage policy. However, if you update your property you want to make sure you update your policy. You always want to get a comprehensive policy with replacement cost whenever possible.

Cheaper Is Not Always Better - Don't Buy On Price Alone: Rental property owners, like any good business owner, is always trying to squeeze out every possible penny possible. Whether it be buying a off brand or on sale paint, a lower grade carpet because every dollar saved ads to your bottom line. Right? Wrong when it comes to insurance. A non covered claim costing you thousands of dollars out of your own pocket is not worth buying the few dollars a month CHEAPER policy. Insurance is only as good as if it covers your claim when you need it the most. There are lots of ways to get a cheaper rental property insurance policy, know your options, your coverage choices and make a informed decisions. Always get a Form 3 policy when possible.

Always Get A Second Opinion: Most rental property owners buy their policy, sit it on the shelf and forget about it for years. Simply paying the premium year after year. Don't you think you deserve a second opinion on your insurance. Let another agent, who specializes in Rental Property Insurance, compare your coverages and your premiums. You might be surprised, or horrified, just what your getting with your current agent.

If you are looking for Rental Property Insurance and its contents, look no further than a quality quote from Groningerinsurance.com. Your PA Rental Property Insurance We specialize in insurance for your rental property

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Update Jan. 20 -2009 All About "Landlords Rental Property Insurance" Information By Insurance Experts

2010-01-20T04:01:00.000-08:00

By Tom Lustina

If you own one or more rental properties, than landlord insurance is one of the most important investments you will make. Not only does landlord insurance protect you from paying for damages, theft, and acts of nature associated with your rental property, but it also can protect you from financial liability associated with your tenants. Protecting yourself from the tenants who reside in your rental units is not only a smart financial decision, but can save you from tremendous losses associated damages they may be responsible for.

You are only making money off your rental properties when they are occupied and landlord insurance can make sure that you are financially able rebuild or repair your rental units as quickly as possible in the event of a claim. The sooner your units are back to the condition necessary to rent them, the sooner you are generating income again.

The three main types of are: landlord house insurance, landlord building insurance, and landlord content insurance. Each one covers different aspects of the rental property and it's important that you discuss these differences with your insurance agents.

A couple of common scenarios make it obvious how critical landlord insurance can be. Lets say your rental building experiences a fire and displaces the four units houses there. Now you are responsible to cover the costs of repairs, absorb all the lost rent you are no longer collecting, and potential other damages associated with the evacuated families living there. Without landlord insurance that scenario could mean financial ruin for many people.

Another very common scenario involves a tenant that refuses to pay rent but you are unable to evict them for 30, 60, maybe even 90 days due to local housing laws. With a landlord insurance policy that includes Legal Expenses coverage, all your legal costs associated with suing the tenant for lost rent would be covered for you.

There are many companies that provide landlord insurance in the US. Some of the largest and most popular would be Safeco, Metlife, and Allstate. As with any insurance policy it is important you discuss all the critical details of your property and your financial needs with an experienced local insurance agent.

InsuranceAgents.com provides consumers with immediate access to homeowners insurance quotes, condo insurance quotes articles, and comparisons.

Article Source: http://EzineArticles.com/?expert=Tom_Lustina

Insurance For Landlords - Your Guide to Rental Property Insurance

By Patrick Mahen

Here are two coverage's that a landlord policy includes that is vital to your rental property business:

Liability Protection

Loss of Rental Income

I hope this article helped you understand why it is so important to have insurance for landlords. If you want to compare insurance rates from top companies in minutes click here.

Article Source: http://EzineArticles.com/?expert=Patrick_Mahen

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Update Jan. 02 -2009 All About "Landlords Rental Property Insurance" Information By Insurance Experts

2010-01-02T06:41:00.000-08:00

By Sally Desh

Renting out properties is a popular way to create income for many people in Australia. It is not only a great way to earn extra cash it also an excellent way to get a portfolio of properties that are an investment for the future. Like owning any home, when you are a landlord you need to protect your investment property and this is done through taking out a landlord insurance policy.

Landlord insurance is different to regular house insurance as it provides protection on a rental property. In other words it is a type of insurance that is created specifically for landlords and covers the building that is being rented out for various occurrences. These can include: fire or smoke damage, vandalism, malicious acts on the property, liquid or water damage, theft and even natural disasters such as earthquakes.

Anyone who rents out properties needs to take out insurance as part of the rental procedure. To find out more about the type of landlord insurance that you need it is a good idea to compare policies online. Using a comparison site will help anyone looking for land insurance to sift through the various policies and find one that provides the level of cover needed.

By using a comparison tool, landlords can obtain a range of quotes from many different insurance companies. Simply enter details into the site and start the comparison. Once this has been done a list of insurance companies offering landlord insurance will be created with brief details of each separate quote next to the name of the insurer.

Once the list is compiled the landlord is able to look at details of quote. If there is a policy that provides the needed amount of cover of landlord insurance for an agreeable cost the landlord can proceed to the insurer's website and purchase the insurance policy. Finding insurance this way means there is a lot more choice also and more importantly money saved by landlords, something which anyone who rents out a house will no doubt be interested achieving.

By taking the time to compare quotes any landlord can find cheap land insurance and get their properties covered. Having rental properties insured is not only the sensible option if you are a landlord it is normally part of the legal agreement in place when a property is being rented out. If the property being rented out is not furnished the landlord insurance will only cover the actual building. It is then the responsibility of the tenants to insure their own contents with their own insurance policy.

Every investor should have landlord insurance for their property investment home. So get a landlord insurance quote online today and protect your investment! Submitted by Sally Desh

Article Source: http://EzineArticles.com/?expert=Sally_Desh

Know About Building Insurance Coverage and the Role of Landlords

By Adam Labno

If you are a landlord then knowing all the important aspects of insurance is vital because a good policy always saves you and gives you peace of mind. Mishaps can take place anytime so you should take the proper step to secure your self.

If you own a property and your property is rented by tenants so it is very important to take all the steps to secure your property so that in the future you do not have to face any economical crisis. Finding the insurance that covers your property sensibly is the best solution because by taking insurance you make sure that you get covered for any kind of loss to your property.

Suppose you own an apartment and you use that property for renting purpose, today landlord face with a lot of problems and difficulties, economical risk is also quiet high for the landlords. So if you are among any landlord who owns a whole apartment then the best way to secure your self is to go for building insurance. With this insurance you get the coverage for your apartment and also for the liability.

Landlords should choose building insurance and get all the benefits out of it, your apartment will be insured at the same time you will get coverage for any damage caused by accident, assurance of rent. Providing you with protection legally is a part of this insurance.

Today nothing is fixed in this world and it is not even secure, natural calamities can happen any time, flood, earthquake can break down any time, so as a landlord you should think positively and to protect any kind of loss to your valuable property accept building insurance.

Get assurance for your building

Insurances for landlords are available easily and are of several types which cover different types of properties. You can get the assurance of rent; you can go for the insurance of your building and content insurance can also be acquired.

Building insurance mainly covers your building or apartment that you own, so you can stay tension free and do not worry about floods, earthquakes, bursts if you are covered by building insurance. The contents of your building are not covered under this insurance.

Content insurance is another way to secure your household contents, having this kind of insurance will give you assurance for your contents from any loss and if your property is rented then having this insurance is vital for you because you are totally depended on your property.

Are you looking for the best option to carry out with building insurance coverage and what role you could play as a landlord or a tenant? If your answer is 'yes', then you must visit http://www.opuslettings.co.uk to get the best information, tool and advices on this issue.

Article Source: http://EzineArticles.com/?expert=Adam_Labno

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Update Dec. 13 -2009 All About "Landlords Rental Property Insurance" Information By Insurance Experts

2009-12-13T05:56:00.000-08:00

By Sonia C Llesol

Having a rental property is a great way of earning and building wealth in the real estate industry. It is your assurance of income received every month. Owning a rental property has tax advantages unknown to most.

What these tax advantages are, find out below:

1. Tax deductions on a rental property are in line with taxes in any business. Expenses necessary for maintenance of the property can be deducted. This includes insurance, cleaning, landscaping, mortgage payments interest among others. Advertising costs, tenant finder fees and professional fees are also included.
2. Loan payments on your rental property are tax deductible. This strategy eliminates the profit on your rental business. The equity you put into the insurance product grows tax-free.
3. If your real estate investment appreciates, a tax-related benefit is that its appreciation is not taxed. If you purchase a home for one-hundred thousand dollars and it doubles to two-hundred thousand, the one-hundred thousand you gain is not taxed currently. The combination of borrowing and appreciation is still tax-free. Let's say you buy a property for one-hundred thousand dollars and appreciates to two-hundred thousand, once you borrow two-hundred thousand against the value of the property, that amount you borrowed will not be taxed.
4. Another rental property tax benefit you could enjoy is the deductible business expenses. If your business mainly consists of real estate investment, you may qualify for what is known as Real Estate Professional. The benefit you can get from this is your real estate activities such as having a property or properties rented will not be considered as passive investments but as an active business, meaning you can deduct all ordinary operating expenses from your tax dues.
5. Phantom Cash is a government incentive and tax loophole to further benefit from the real estate business. In a Phantom Cash, the value of your rental building is divided by 27.5 years. You can then divide the amount from your yearly taxable income.

To better illustrate this, here is an example:

A building purchased at $40,000 divided by 27.5 = $1,455. This amount will be deducted from your taxable income per year. This excludes other deductions from your rental income.

6. Tax Deferred Form 1031 allows you to sell a property with the intention of purchasing a more expensive one and not having to pay the capital gains tax you received. The 1031 form uses a third party to hold the money until you can invest it into another property of higher value. This will allow you to upgrade your rental properties without having to pay taxes.

7. If you have rental losses such as tenants running off without their rents paid and other things, these accumulated losses will enable you to boost your finances. If you have thousands of losses, make sure that you claim every single penny of tax deductions they are entitled. Remember that every $1,000 expenses claim will give you $400 less your tax bill later on.

You can inquire from your local tax authorities on further information on the tax advantages of owning a rental property. Go ahead and invest and you will enjoy more benefits aside from the ones you can get from taxes.

Looking for a nice property to rent, you can find a wide variety of rental properties at Phoenix Homes for Rent and Seville Homes for Rent.

What You Should Know About Rental Property Tax Deductions

By Pauline Go

Owning a rental property may be advantageous in some ways. The income you get from rental real estates can sometimes be a substantial amount, and this could increase your tax liability. However, landlords can reduce their income tax on their profits. This is possible through investments. To know more about rental tax deductions, read on.

There are two types of investors: passive and real estate professional. The losses of real estate professionals are deductible against all types of income, be it passive or non-passive. If the losses are passive, then the landlord is only allowed to deduct up to $25,000 against the rentals' income. Conversely, losses that exceed up to $25,000 can be carried forward to the following year.

Common deductions on rental property tax include the mortgage expenses. The expenditures used to obtain a mortgage are not included in the list of deductible when paying them. Mortgage expenses also include appraisals and commissions paid.

Travel expenses are also included in rental property tax deductions. This means that a landlord can include the money spent on traveling to collect the rent or maintaining rental property. Travel expenses are considered tax deductible. But in cases when the purpose of such travels is for improvements, you can recover the expense as part of the improvement. There are two choices on how to deduct travel expenses. You can choose the actual expenses or the standard mileage rate.

There are still other common expenses that you, as a landlord, can deduct from your rental property taxes. Some of these common expenses include property taxes, insurance, lawn care, landscaping expenses, losses of causalities and tax return preparation fee. Things like buying new appliances or home repairs would have to be depreciated.

About Author:
Pauline Go is an online leading expert in finance industry. She also offers top quality articles like:
Protesting Property Tax, Tax Relief Checks

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Update Nov. 24 -2009 All About "Landlords Rental Property Insurance" Information By Insurance Experts

2009-11-24T03:53:00.000-08:00

By Brian Gregory

When you were ten years old, you probably never said that when you grew up, you wanted to become a landlord. But when you were twenty, and you moved into your first rental property, you probably DID dream of being the landlord, instead of the tenant. What's it like to be a landlord? What are the pros and cons? Here's what it's like to be a landlord for a day.

Pro 1: Passive Monthly Income

In its ideal form, being a landlord means that money finds its way into your checking account each month, without you having to work for it. That's a powerful thing; consider the implications of income with little to no work required by you. If it sounds like early retirement, you're beginning to understand the possibilities.

Con 1: Unexpected Time & Work Required

Of course, nothing in reality ever achieves its ideal form. Finding a good tenant is a lot of work, from advertising to showing to screening tenants to finalizing the rental agreement. Sometimes repairs and maintenance will require your attention, as will the tenant when they have questions, concerns, and problems. And if that tenant goes bad... well, that's a whole con unto itself.

Pro 2: Asset Appreciation for NetWorthBuilding

While real estate markets do fluctuate (sometimes drastically, as the late '00s witnessed), over time real estate values appreciate, alongside population growth. Developers and real estate investors essentially act as a stop-loss valve, which slows growth in supply if demand drops and values start to ebb, effectively guaranteeing long term real estate appreciation in any market that sees population growth.

Con 2: Unexpected Expenses

You can't predict when that furnace will drop dead, or the basement suddenly starts flooding. Repairs, maintenance, and periodic improvements are expenses that landlords have to budget for, regardless of how much or little the rental property earns them. Additionally, vacancies when you have no rental agreement signed will cause your pocketbook some heavy damage, as you have to carry the mortgage, taxes, insurance, repairs, eviction notice and procedural costs, and advertising costs while the rental property is vacant.

Pro 3: Diversification of Income & Investments

Diversification means risk reduction, as you better defend yourself against losses in one area by having additional sources of income and investment. If some of your retirement money is tied up in a mutual fund, and that mutual fund goes south, you'll be a far better position having additional investments in the form of income-producing (and appreciating) rental investment properties.

Con 3: Legal Liability

The miserable truth is that we live in a litigious society, and landlords in particular are targets for litigation. For some reason, people see landlords as an easy target to sue, and sue them to make a quick buck. Landlords can take certain steps to limit their liability (such as using a state-specific rental agreement with all the required disclosures, setting up legal entities to hold their assets in, etc), but these steps won't protect you absolutely. It is simply a reality of being a landlord: you must do everything you can to both avoid litigation and prevent losses due to it. There are websites that can help you with landlord legal forms, such as your state's rental agreement and required disclosures (such as EZ Landlord Forms), and landlords are well advised to speak with an estate planning attorney to discuss asset protection techniques.

Pro 4: Tax Advantages

Rental income you earn is taxable, but almost all of your expenses are tax-deductible. You can write off mortgage interest, property insurance, local real estate taxes, repair and maintenance costs, office, phone, accounting, and other costs incurred as a landlord. Additionally, you can deduct depreciation - the loss of value due to wear and tear caused by tenants.

Con 4: Bad Tenants

Bad tenants are the bane of landlords everywhere. Some don't pay, some trash your rental property, some flagrantly violate your rental agreement, some will threaten to sue the second you serve them with an eviction notice, and some are just plain rude, unpleasant, and terrible people. Good tenant screening can weed out most of these, by checking their income, employment, credit history, criminal history, and history of each eviction notice served on them, but every once in a while one will slip past your screening, and the nightmare begins.

There are many other pros and cons, from the fantastic leverage possible through signing a rental agreement and subsequent mortgage to recover almost all your initial investment, to difficult rental markets, but the fact is that being a landlord is a great way to invest money if you are willing to accept the responsibility. Do your homework carefully about the market you're considering, and if you're willing to invest the work and shoulder the risk, you might just find yourself retiring early.

Brian Gregory (The Traveling Landlord) is a landlord, former property manager, and long-time real estate investor, who has discovered how to travel the world through the passive income of rental properties. He is also a real estate writer, contributing to such online publications for landlords as NuWire Investor and EZ Landlord Forms, a provider of state-specific rental agreement packages and eviction notice forms.

Article Source: http://EzineArticles.com/?expert=Brian_Gregory

Landlord Tips - How to Raise the Rent on Your Rental Agreement

By Brian Gregory

Landlords have to raise the rents on their rental properties sometimes, as their costs (mortgage rates, insurance premiums, property taxes, etc.) go up, and as market rents rise. It can be a tricky and unpleasant conversation to have with your tenants, so here are a few ideas to help make the conversation smoother and more successful.

Tip 1: Timing is Everything

Don't raise the rent in winter or fall! It's drastically harder to fill rental properties in the winter, so wait until spring when you'll be able to find a new tenant to sign a rental agreement much faster.

Tip 2: Advance Notice: More is More!

First of all, most states require you to give tenants written notice 30-90 days in advance of raising rent, which is something you need to research in your state. Additionally, however, having the conversation sooner rather than later gives you a chance to find a new tenant BEFORE the old tenant moves, creating a smooth transition with no costly vacancies.

Tip 3: Do It in Person

There are a thousand good reasons why you should have the conversation about rent increases in person, but the bottom line is that the tenant will be far likelier to agree to it if you put on your big kid pants and show up in person. People feel less comfortable saying no in person, and you will find that you make a far more charismatic and persuasive case if the tenant can see your face, watch your hand gestures, and see that you're a person with your own bills and expenses on the rental property.

Tip 4: Offer Tenants the "Assurance" of a Longer Rental Agreement

If the tenants hesitate when you tell them you have to raise their rent (and of course they will), this is actually a golden opportunity. Tell them that you understand that they have their own bills and their own concerns, and that you're willing to extend their rental agreement from 12 months to 18 or 24 months, so that they can have a written assurance that you will not raise their rent again for a year and a half or two years. Sign a new rental agreement with them, with the new amount and the extended term, and you just secured a rented property for the next two years!

Tip 5: Research Market Rents Carefully and Beat the Competition... Barely

Moving is expensive, and tenants would have to start all over with a new rental agreement and new landlord. If your rent is less than local market rents, try raising it to just under the local average, so that it doesn't make fiscal sense for your tenant to move. For example, if you currently charge $875, and area rents for comparable rental homes is $1,000, raise the rent to $975, and when your tenants balk, tell them that they're welcome to check out the house across the street available for $1,000, or the house a few blocks over available for $1,250, or the one up the street that's also $975, and explain that their rent is still below area market rents.

Tip 6: Consider Alternatives to Raising the Rent

It's possible that raising the rent is not worth the trouble, if it means losing a particularly good tenant. If you have a great tenant, consider approaching them (in person, of course!) and talking over a few possibilities. First of all, explain why you might need to raise the rent (higher taxes, etc), which most reasonable people understand. Second, gauge their reaction to the proposed rent increase. Third, if they look panicked, tell them that they've been great tenants, so you're willing to cut them some slack. Consider offering them a new rental agreement that phases in a rent increase over the next 12, 18, or 24 months. So, maybe the rent will stay the same for the first six months, then raise by $25 for the six months after that, and another $25 the six months after that. Make sure they know that you're working with them, and trying to keep the rent affordable, because they've been such great tenants.

Raising the rent on your rental agreement isn't the fun part of being a landlord, but it is a necessary part if you intend to actually make any money. Consider each rent increase on a case by case basis, be fair, be honest, and remember that securing another, longer-term rental agreement may be more valuable than an extra $15/month.

Brian is a landlord and real estate investor, who contributes articles to Ezine, NuWire Investor, and EZ Landlord Forms, a site that offers a customizable rental agreement builder and state-specific tenant notices, among other services for landlords. In his spare time, Brian is a photographer, film critic, independent film producer, and travel aficionado.

Article Source: http://EzineArticles.com/?expert=Brian_Gregory

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Update Nov. 04 -2009 All About Landlords Rental Property Insurance Information By Insurance Experts

2009-11-04T08:57:00.000-08:00

By Chintamani Abhyankar

Rental property tax deductions are critical to landlords. These deductions could literally slash your tax liability. If you own such property, you need to familiarize yourself with these deductions.

• Depreciation Value of Your Property

When you purchase a property for rental you cannot deduct the full amount of what you paid for it from your income taxes. Instead, the property depreciates over time. Generally speaking, the elapsed time for depreciation is 20 to 30 years. Homeowners cannot claim depreciation, so you won't be able to apply this deduction to the place where you live.

• Insurance Premium Costs

All insurances related to your ownership of your property are tax deductions. This includes, but is not limited to things like landlord liability insurance, building insurance, and home contents insurance.

If you employ people to maintain your properties you can even deduct their workman's compensation insurance as a deduction related to your property ownership.

• Mortgage Payment Deductions

Just like a homeowner, as a rental property owner you can deduct the interest on the loan you took to purchase the property.

• Repair Deductions

Whatever it costs you in repairs and maintenance to keep your property in good condition is tax deductible.

• Traveling Expenses

Any travel expenses you incur as part of being a rental property owner are tax deductible. Whether you drive to your properties to collect monthly payments or to regularly cut the grass, paint the building, fix broken water pipes or show apartments available for rent, all of it is tax deductible as expenses incurred with being a rental property owner.

As part of these expenses, you are generally allowed to deduct vehicle maintenance and repair, and gasoline bills.

If you own property abroad and must travel to a foreign country to engage in business activities associated with rental property, you may be able to deduct your accommodations and driving expenses, along with airfare.

If you own such properties, it would be wise to have a professional prepare your taxes for you. There are many business deductions and tax credits that may apply beyond rental property deductions. Find a professional to prepare your return who has a niche operation for rental property owners. Only in this manner are you assured not to miss out on any of the tax deductions and credits available to you as a property businessperson.

Also, your professional tax person can advise you about what deductions and tax credits you are eligible to claim and those you are not, due to circumstances with which you may not be familiar.

Are you a landlord managing rental property? You may miss out on some special deductions which are available due to your status. What are they? Chintamani Abhyankar explains many of them to slash your taxes.

Chintamani Abhyankar, is a well known expert in the field of finance and taxation for last 25 years. He has written many books explaining inside secrets of the magic world of personal finance. His famous eBook Stop donating your money to IRS which is now running in its second edition, provides intricate knowledge and valuable tips on personal finance and income tax.

Article Source: http://EzineArticles.com/?expert=Chintamani_Abhyankar

A Landlord's Guide on Rental Property Taxes

By Pauline Go

Landlords or proprietors must be aware of what counts as income to make sure they pay rental real estate taxes just right, meaning not overpaying. Also, they must be aware of all expenses that are deductible. In this manner, they can make sure they are not overpaying. Most of the times, the reason behind overpaying your rental property tax is not having complete understanding of the property taxation system.

So that you will not end up paying too much of the rental property tax, you must know all the details about rental property tax. First let us define what rental income is. Rental income refers to payments received for the use or occupation of property. Since most landlords function on a cash basis, payments are counted as income. Expenses are then deducted upon the payment.

Sometimes, landlords are not aware of other forms rental income that must be declared. The following are considered as rental incomes: Advance rent payments, early termination fees on leasing agreements, expenses paid by tenants for the landlord and property and service received in cash or in the form of money.

Landlords must also know things involving rental expenses. There is this expense called ordinary expenses. These are common and generally accepted in business. Necessary expenses, on the other hand, are those that are considered appropriate like taxes, interest, advertising, utility and maintenance and insurance.

These are just a few things worth landlords must know to make sure they run their rental business smoothly and avoid further problems like overpaying rental property taxes.

About Author:
Pauline Go is an online leading expert in finance industry. She also offers top quality articles like :
Protesting Property Tax, Tax Relief Checks

Article Source: http://EzineArticles.com/?expert=Pauline_Go

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Update Oct. 17 -2009 All About Landlords Rental Property Insurance Information By Insurance Experts

2009-10-17T00:33:00.000-07:00

Landlords insurance is defined as a policy to cover a property owner from financial losses connected with their property which they let out. Mainly a landlord insurance policy will cover the building itself with the option of including the contents left within. It covers standard perils such as fire, lightning, explosion, earthquake, storm, flood, escape of water/oil, subsidence, theft and malicious damage. Each insurance policy is different and may or may not include all these items. Most companies will provide the option to have extra cover on top of what is considered the standard cover. These may include things such as accidental damage, legal protection, alternative accommodation costs or rent guarantee insurance.

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Landlords House Insurance - Tips and Advice
By Kris Mathews

If you own a property that you are renting out, you should ensure that you have the right insurance protection. Landlords should be aware that many things can go wrong with their home while it is being occupied by tenants. In some cases the tenants may be disastrous and cause a lot of damage to the actual property. It is important that you have a good landlord house insurance to ensure that your property is protected when you are renting it out.

When it comes to renting out properties, everyone knows that sometimes the worst things can happen. Murphy's Law is very applicable for people who own rental properties. Sometimes the worst thing that could happen occurs to your rental property. Getting a good insurance policy is important in ensuring that you don't have to pay a lot of out of pocket expenses for your landlord insurance.

When you are looking to apply for landlord house insurance, you should be sure to look around and find a good insurance company to work with. You need to make sure that your coverage can match your price. Sometimes people are coaxed into paying very little for their insurance policy, but when it comes time to making a claim they will feel ripped off.

Home owners who are renting out properties should ensure that they get a good landlord house insurance to protect their assets. Because anything can happen when you are a landlord, you should expect and prepare for worst case scenarios.

If you have a rental home then you should get Landlords House Insurance for your property. If you look online there are many different Home Insurance Providers that can offer you good rates on your insurance.

Article Source: http://EzineArticles.com/?expert=Kris_Mathews

Pets - Should You As a Landlord Allow Pets at Your Rental Property
By Dana Powell

One of the most popular questions asked of property managers and landlords, does your property allow pets?

The answer to which varies person to person and company to company. However, it is one that should not be made lightly; because, as with everything, there are pros and cons to allowing pets at your rental property.

The Pros:

Pet friendly rentals are rare, tenants owning pets are abundant; thus a larger pool of potential renters to choose from.
Property may rent quicker due to a larger pool of interested parties.
Residence may stay rented longer because it is pet friendly, tenants may have trouble finding another home accepting pets.
Cats can take care of rodent problems, especially for those homes located in the country.
A watch dog could deter vandalism while tenants are away on vacation or at work.

The Cons:

Pets tend to cause more damage to homes and yards, and there are times when the security deposit won't cover the costs.
When one pet is allowed, often a second or third is asked for or snuck in.
Unrestrained, barking or whining dogs can become a nuisance to the neighborhood.

As a landlord the choice is yours. Often, owners will consider a small pet, depending on the age of the pet, breed, and how the rest of the rental application looks. A major factor to consider is if the applicants and their pet have a good rental history from their previous landlord.

Just beware; the following breeds of dogs are the breeds you should think twice about allowing. Most homeowners insurance companies will cancel homeowner policies if these breeds are on the premises: Akita, Chow, Doberman Pinscher, German Shepherd, Rottweiler, Wolf Hybrid, and Pit Bull breeds including, but not limited to: American Staffordshire Terrier, Pit Bull Terrier, Staffordshire Bull Terrier, English Bull Terrier, and Presa Canario.

If you are looking for the best Red Bluff Property Management or Red Bluff Rentals Northern California Property Management is the premier property management in the area. Click on the previous links to learn more about us.

Article Source: http://EzineArticles.com/?expert=Dana_Powell

Landlord Insurance - Protection Against Devastating Financial Losses
By Tom Lustina

For more, read Protect Yourself With Landlord Insurance

InsuranceAgents.com provides consumers with immediate access to homeowners insurance quotes, articles, and comparisons.

Article Source: http://EzineArticles.com/?expert=Tom_Lustina

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Update Sept. 28 -2009 All About Landlords Rental Property Insurance Information By Insurance Experts

2009-09-28T09:39:00.000-07:00

Landlords insurance is defined as a policy to cover a property owner from financial losses connected with their property which they let out. Mainly a landlord insurance policy will cover the building itself with the option of including the contents left within. It covers standard perils such as fire, lightning, explosion, earthquake, storm, flood, escape of water/oil, subsidence, theft and malicious damage. Each insurance policy is different and may or may not include all these items. Most companies will provide the option to have extra cover on top of what is considered the standard cover. These may include things such as accidental damage, legal protection, alternative accommodation costs or rent guarantee insurance.

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Rental Property Tax Deductions That Will Slash Your Landlord Tax
By Teo Zhenjie

If you are a landlord or property manager, knowing your rental property tax deductions is vital for cutting your taxes to the minimum. Find out how to enjoy lower landlord taxes and boost your profit margins right now. Rental property tax deductions are basically rental expenses that you are allowed to deduct when calculating your taxes. They are crucial because they will reduce your total amount of taxable income.

To cut down your landlord taxes, you can should to include as many tax deductions that you are allowed to use. The following are the common and important deductions that you can enjoy as a landlord:

1. The Depreciation Value of Your Property

When you buy a new rental home, you cannot claim the full amount that you paid for it as expenses right away. Instead your property is slowly depreciated over a long period of time.

Depending on the country that you live in, most depreciation periods for residential property range from 20 to 30 years. Home owners are usually not allowed to claim depreciation as tax deductions so you will not be able to apply this to your own home.

2. The Premiums for Your Landlord Insurance

Being a landlord means that you will usually have to buy a series of insurance polices such as building insurance, home contents insurance and landlord liability insurance.

You will be able to treat the premiums that you fork out for all your landlord insurance policies as tax deductions. If you employ people to manage your rental real estate, you will be able to claim the premium for their worker insurance as rental property tax deductions as well.

3. Interest on Your Mortgage and Credit Cards

Unless you are awfully rich, you would have taken out a mortgage loan to pay for your property investment. Fortunately you are allowed to deduct this sizable interest charged by your bank or mortgage lender.

If you pay for any of your rental expenses by credit card, you will also be allowed to deduct the relevant credit card interest from your total taxable income.

4. Your Property Repair and Maintenance Bills

The money that you fork out to maintain your rental home in habitable condition is also tax deductible. This refers to any repairs or maintenance that are conducted to make sure that it meets your local health and safety housing standards.

However you must know that any home improvements that you carry out for the purpose of boosting the values of your real estate cannot be considered as a deduction. If you hire a contractor or repairman for repairs, make sure you ask them to give you a receipt with the property costs and type of repair work stated on it.

5. Travelling Costs for Managing Your Real Estate

Any travelling expenses that you rake up for rental activities such as rent collection and property repairs are also tax deductible. You are usually allowed to deduct both your gasoline costs and vehicle's maintenance bills. If you own rental properties abroad and you travel overseas for real estate activities, you may even to claim your airplane tickets, hotel stays and travelling fares as rental property tax deductions.

The tax agencies in most countries will monitor your tax claims for overseas travel quite closely so be sure not to abuse the system and keep proper written records of your spending such as receipts and bills.

Teo Zhenjie has been showing landlords how to manage their tenants and rental properties effectively on Propertydo http://www.propertydo.com - To learn more important tips on rental property tax deductions, visit his website today for step-by-step real estate guides, free resources and forms.

Article Source: http://EzineArticles.com/?expert=Teo_Zhenjie

Beware of Illegal Use of Your Rental Property
By Kath Wrong

The second cannabis factory in two weeks was founded in a buy-to-let property in the Kettering area, Northamptonshire. 600 plants (150 mature plants and 450 small plants) of Cannabis, worth £200,000, were discovered in a semi-detached house on Havelock Street in Kettering on Saturday; which was followed by 500 (£130,000) cannabis plants founded on Lindsay Street in the same area the week before. This suggested an increasing concern of the purposes and functions of the rental units.

Landlords should be aware of what kind of tenants they are taking in as well as the signs and possibility of cannabis factories. Internal walls demolishing as well as manipulated electrical wiring can be observed as signs of cannabis activity.

"Costs" of your rental property as a cannabis factory

If cannabis activity happened in your rental property unfortunately, you - as the landlord - have to deal with a number of aspects:

- As some of the insurance does not cover any damages due to illegal purposes, landlords have to spend a large sum of money to repair the damages. It is, thus, highly advisable to check with your insurer and its insurance documents carefully in case anything happens.

- There is a high risk of fire when electrical wiring has been manipulated; hence, it may take months for the property to be recovered to what it was used to be.

- Properties as cannabis factory are usually seen as a crime scene and access to the properties is often blocked for investigation. Thus, it will result in loss of rent for several months.

Advice to prevent cannabis activities in your rental property

Run a complete full tenant referencing to check the background of your tenants - references from previous landlords and employers are important.
Do not accept and take up a block of rent in advance (which could be a sign of illegal activity).
Visit the property regularly, at least once every quarter.
Ask your neighbours to keep an eye on your rented property if possible.

Discount Landlord Insurance

http://www.discountlandlord.co.uk/landlord-insurance.html

Please find us on Twitter @DLI_insurance for up-to-date information on property and the buy-to-let industry.

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Letting Agent Information For Property
By Vijay K Shetty

Are you a property owner, landlord or a business owner who owns property for commercial letting? You must be looking out for letting agent's information in order to let out your property. These agents will find out all the information related to tenant and will save you a great deal of time. You can delegate your responsibilities to the professional agents and you can concentrate on your mortgage payments if any. They will collect all information about a tenant and find out if he is suitable for your rental unit or not.

They will carry out your property advertisement in the most popular real estate portal so that a greater number of people view his rental property information. It is advisable to add your rental property picture along side the property information to give a clear picture of how your house looks like. This will attract the right client or tenant for your rental property as only those who have seen those property pictures will approach you. You can thus avoid those who are not interested in your rental property.

Choose your letting agents carefully; reach out to the one who is highly professional. Find out how successful they have been in the past and have they referred right tenants in the past. You can even read testimonials about the agency in order to find out how reliable they are. If they are good enough they will find a potential tenant for you.

Once the suitability of the tenant is established, a lease agreement is drawn up. This agreement makes a written statement of the terms and conditions of the house which is in the interest of the landlord and his property. The terms and conditions will be regarding the rental payment on time, property management and maintenance. If there is any damage to property or nuisance to the neighbours reported he will be penalized for it and may be evicted if it continues. A tenant should also cross check the check list prepared by the landlord.

The inventory and condition report must be verified before agreeing to it. This states the condition of the entire property, including curtains, carpets, furniture, oven, refrigerator, wallpaper and paintwork along with a list of the entire contents of the property. If you find that a particular item in the property is already damaged and not mentioned in the inventory condition report, this can be brought to the landlord's notice.

Vijay Koragappa Shetty
Get all your tips related to Property Letting Agent:

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Update August 20 -2009 All About Landlords Rental Property Insurance Information By Insurance Experts

2009-08-20T05:07:00.000-07:00

Landlords insurance is defined as a policy to cover a property owner from financial losses connected with their property which they let out. Mainly a landlord insurance policy will cover the building itself with the option of including the contents left within. It covers standard perils such as fire, lightning, explosion, earthquake, storm, flood, escape of water/oil, subsidence, theft and malicious damage. Each insurance policy is different and may or may not include all these items. Most companies will provide the option to have extra cover on top of what is considered the standard cover. These may include things such as accidental damage, legal protection, alternative accommodation costs or rent guarantee insurance.

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Rental Property Insurance
By Josh Riverside

Most landlords have insurance on the property they rent, but the people who are renting can and probably should have renter's insurance to protect their property. This type of insurance covers items that are inside a rented property. In simple terms, while the landlord may have insurance for damages to his building, he or she probably does not have coverage for the valuables you have in your rental unit. In the event something happened to the landlord's building and you were displaced for a time, the renter's insurance would also pay for your stay. This type of insurance is also very handy for tenant liability problems. If the tenant is supposed to maintain the property but does not and someone is injured on the premises, it is the tenant and not the landlord who may be liable for this problem. If the renter had insurance, the claim would be covered as long as the tenant is the one responsible for maintaining the area.

If the apartment or home you are renting is in a high crime area, it is especially important to have renter's insurance. It will cover all personal items that are stolen from the property. If there have been repeated break-ins in the area, you may have a problem getting insurance, so make sure you check that out before you move into a rental space in a high crime area.

Renter's insurance is like homeowners insurance. You pay a monthly or yearly premium, as well as a deductible. The higher the deductible, usually the lower the monthly payments.

Property Insurance provides detailed information on Property Insurance, Property And Casualty Insurance, Rental Property Insurance, Commercial Property Insurance and more. Property Insurance is affiliated with Home Renters Insurance.

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Investing in Rental Property For Beginners
By Shawn B

The procedure of investing in rental property as beginners can be thrilling; however, before you get too energized it is imperative to run some groundwork numbers to make sure you know precisely what you are facing to make sure a winning investment.

First, you will want to carefully inspect potential rental income. If the home has already served as a rental property, you will require to take the time to discover how much the property has rented for before and then investigate to decide whether that amount is on the mark or not. In some cases, properties may have rented for lesser than they should have whilst in other cases a property may be over-rented. Look at equivalent properties in the neighborhood to make sure you know whether the property in question is on mark; otherwise you may find that the quantity you think you will be getting in rental income is unlikely.

Mortgage interest is an additional area that should be thought-out carefully. Make certain you identify and comprehend the current interest rates as well as the details of your precise loan since mortgage interest is the major cost you will come across when purchasing investment property. First, recognize that homes and duplexes are inclined to have loan structures that are alike to any mortgage loan. With a bigger property; however, such as a triplex; rates are inclined to be higher. If you are looking at commercial land with even more units; the matter of terms and rates is entirely different. Normally, the more money you are able to put down on the acquisition of the property, the lesser amount of interest you will have to pay.

Taxes are an additional issue. Numerous people utilize the taxes from the year during which the property was purchased and think they can use these numbers to guess everyday expenditures. This is not always the case as taxes do not stay the same; they characteristically alter every year. More often than not, taxes rise after a property is purchased. This is particularly accurate if the property was formerly owner occupied. So, it is normally an excellent idea to just presume that the taxes will increase on the property subsequent to you purchasing it.

A part which many people fall short to take into contemplation is the expenditure of the property being empty. As you would surely hope that your property would stay rented all the time, this basically is not reasonable. There will most likely be times when your property will be vacant. In general, you should believe that your property will include on average a 10% vacancy rate.

The expenditure of occupant turnover should also be taken into deliberation. This is often a big shock to many landlords who take for granted they will lease out their properties and the occupants will stay in the property for a number of years. Even more of a revelation is how expensive it is to sort out the property to rent out yet again. Just a few of the costs to take in are not only advertising for a new renter but as well repainting, clean-up, etc. If damage was done to the property, the full amount of restoration may not be wholly covered by the security deposit charged.

Of course, the price of insurance ought to also be taken into full deliberation. Bear in mind that the insurance for rental properties is typically higher than a proprietor occupied property. Make sure you acquire a quote rather than just using the insurance cost for your own home as an estimating guide. In addition, make sure you take into deliberation not only property insurance but also liability insurance as well.

Utility costs are an additional area that are often under-projected. If the property has previously served as a rental property make certain you find out precisely what the proprietor pays for and what the tenants pay for. You must also make sure to discover whether you will be accountable for additional costs such as garbage collection.

Lastly, take into deliberation the costs of property management if you will not be running the property on your own.

Get weekly tips on buying rental property at cosmeticallydistressed.com

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All About Landlords Rental Property Insurance Information By Insurance Experts

2009-08-05T11:41:00.000-07:00

Landlords insurance is defined as a policy to cover a property owner from financial losses connected with their property which they let out. Mainly a landlord insurance policy will cover the building itself with the option of including the contents left within. It covers standard perils such as fire, lightning, explosion, earthquake, storm, flood, escape of water/oil, subsidence, theft and malicious damage. Each insurance policy is different and may or may not include all these items. Most companies will provide the option to have extra cover on top of what is considered the standard cover. These may include things such as accidental damage, legal protection, alternative accommodation costs or rent guarantee insurance.

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How To Choose the Right Home Insurance for Owners, Renters, and Landlords
By Marilyn Katz

Do You Know What Type of Home Property Insurance to Buy?
Homeowners, Renters, and Landlords all need home property and liability insurance, but their needs are very different. Home insurance needs also may differ, depending upon where you live. A condo owner will have different needs than a surburban home dweller.
Homeowners Insurance: Most people think of buying insurance for a home they own and live in. This type of insurance will cover your building, and the property inside of that building. It will also provide liability coverage in case somebody is injured on your property and it is deemed your fault. Even if you are not at fault, the insurance should help pay for a lawyer to defend you if somebody brings a suit.
Renters Insurance: If you rent an apartment or house, you probably only need to insure your personal property. The building should be covered by the landlord. Your policy should also cover liability insurance in case somebody is injured in your dwelling, and may also have a provision to provide you with a place to live in the case the home is made unlivable by something covered under the policy.
Landlord Insurance: If you own a home that you rent to tenants, you probably just need to cover the building. You should also have some liability coverage, but you should encourage your tenants to purchase renters insurance.
Condo Insurance Even though you own your condominium, the association in your building may take care of insuring the property. Your insurance policy will probably be similar to a renters insurance policy, rather than a typical homeowners insurance policy.
This may seem complicated, but it is important to choose the right type of home insurance policy. It will save you money in the long run. You won't be paying for coverage you don't need. You also won't want to have a loss, and then find out later that it was not covered under your policy.
The important thing is to analyze your needs, do some insurance shopping, and then talk to an experienced insurance agent if you need to. Enjoy your home, and feel secure in knowing that you have protection if something goes wrong.

M. Katz runs 247QuoteUS.com so you can compare insurance online and find home insurance information, quotes, and agents online.

Article Source: http://EzineArticles.com/?expert=Marilyn_Katz

Landlord's Insurance - What is The Usual Standard Coverage?
By Nathan De Bond

The whole point of a Landlords Insurance is that you can rent a property out and be confident that despite the fact that you are nowhere near the property and it is effectively in the hands of tenants that you can still guard against most things that could happen to the property and/or any contents that you may choose to leave in the property when you rent it out.

The main thing with any property that is rented out is that the main perils are covered to stop any damage to the building really hurting you. With Landlord's Insurance things that are covered as standard are usually; Fire, lightning, Earthquake, Explosion, Storm, Flood, Weight of Snow, Escape of Water, Escape of Oil, Theft or Attempted Theft, Malicious Damage or Vandalism, Impact by Aircraft, Impact by Vehicles or Animals and Subsidence.

Most of the things above seem straight forward but there are certain conditions within the policy that must be noted. In the case of Theft or Attempted Theft a forcible entry or exit condition usually applies which means that they have to have had to break in and if the tenants just left the door open then this wouldn't be covered. This effectively means that the tenants do have to do something on their part as well by remembering to lock up and make sure that the house is secure at all times.

Impact by animals is also another one that is sometimes misunderstood as it doesn't usually cover any pets, therefore it would only cover animals that were from outside the home, this is done so that things like a large family dog knocking down a small wall in the garden cannot be claimed for, however if the wall was knocked down by a rhino from the local zoo that had escaped (god forbid) then you can claim and get the damage undone.

The last of these which is a bit more in depth is the subject of Malicious Damage and Vandalism. Whilst most insurers will cover this under a Landlords policy they will not cover it if any damage is done by the tenant themselves, it is seen that Malicious Damage by the Tenant is a far greater risk as they are always at the property and anyone can lose their temper. There are insurers out there though that will cover rented properties from any cases where the tenants may maliciously damage the property, although some may put a claim limit on there of £5,000 others will happily cover that peril up to your requested Building Sum Insured.

I hope that this clears things up for people that are looking to find out more about Landlords Insurance and what exactly you can get cover for when you are renting out a property to tenants.

This Landlords Insurance website will provide you with any further information you may require.

Article Source: http://EzineArticles.com/?expert=Nathan_De_Bond

Why Would I Need Landlord Insurance?
By Dez Broatch

Having a landlord's insurance policy is a prerequisite for all landlords. The policy will protect you if for unforeseeable circumstances the property is not fit for rent. Landlord's insurance will go a long way in helping you with the cost of repair to the property if unexpected damages should occur. A burst water main, fire or even tenant misuse could render the property unsuitable to live in and so a loss of rent would be inevitable, but a landlord's insurance policy would cover this while repairs were being carried out on the property.

A policy should always be scrupulously examined for peace of mind. You need to know what is covered and what is not. For example the policy may only cover you for damage to the interior of the property and not the exterior.

Landlords are repeatedly advised to prudently consider different options before purchasing an insurance policy. A comprehensive insurance policy can provide coverage for all types of conditions except those respectively excluded. A landlord insurance policy will predominantly offer two means through which property losses can be resolved: replacement value and cash value. Landlords will commonly pay a lower dividend for an actual cash value agreement after all they will acquire recompense after the loss of value is deducted from the current market price of the property.

With an alternative value settlement, compensation will cover the fundamental costs of replacing the damaged property. The property, nevertheless, will have to be reinstated to qualify for this settlement. If it is not replaced, the settlement, by defect, will likely to be actual cash value. Landlord's insurance will only cover the property and the legality of the landlord. Damages to personal possessions or another person's goods within a tenant's residence become the liability of the tenant. Taking out a renters' insurance policy will grant liability coverage and, in some cases, it could also cover appropriate legal costs.

Landlord Insurance is available in the UK from Simple Landlords Insurance

Article Source: http://EzineArticles.com/?expert=Dez_Broatch

So You Want To Be A Landlord? Investing In Rental Properties
By Kim Key

If you are thinking of investing in the housing market, now is definitely the time. The recent drop in home prices brings the dream of becoming a landlord (or landlady) within reach. If you are looking to get rich quick, this may not be your vehicle, but if you want a dependable stream of monthly income today, as well as a safety net as you get closer to retirement, consider buying an investment property.

Here are some things you will want to consider as you search for the perfect house to rent.

1. Location.

First, and most importantly, find a realtor you trust. He or she can give you information on the location of the hottest deals. Right now, foreclosures are at an all time high, and houses are selling for a fraction of their assessed value.

Tip:

Look for a solid, middle-class neighborhood; a home too large or too small will be harder to rent. Ideally, it will be located near a school. Homes near schools are not only convenient, but they also hold their value well. If you are set on a house in foreclosure, look to the outer fringes of the foreclosure area, where most people can still afford the payments.

2. Down payment.

Unfortunately, due to the recent mortgage fiasco, it is difficult, if not impossible, to get a home for no money down. For an investment loan, look for an initial outlay of 20%.

Tip:

If it is feasible, consider moving to the new home and renting your residence for a few years. An owner-occupied loan saves money in all areas of the transaction. If you live in the house yourself for at least two years, the profit should be tax-exempt when you finally sell it.

3. Interest rate.

This will vary considerably according to your credit rating. A low credit rating will not prevent you from getting a loan, but you will pay a higher interest rate. If you choose not to live in the new house, plan to pay a point or two higher than a traditional home loan.

4. Condition of the property.

If this is your first investment, you may wish to find a home close to move-in condition. Any home will require a thorough wipe down, carpet cleaning, and a change of locks. Become familiar with your state's landlord/tenant laws so you know exactly what maintenance is required before the home can be rented.

Tip:

Listen to your instincts when viewing the home. If you wouldn't want to live there, no one else will, either. Unless you have building and remodeling skills, or have a trusted handyman on retainer, a "fixer-upper" can become a giant headache.

5. Maintenance.

As the landlord, you will be required to maintain the structure and any working appliances. This includes making sure there are no leaks in the foundation or holes in the roof. A new furnace or heat pump will cost about $5000, so you will want to check it seasonally.

Tip:

A home warranty will pay for itself with the first use. For about $300, you can have peace of mind that if a major appliance needs repair or replacement, you only have to pay the deductible

6. Lease.

State laws vary as to what must be included in a lease, but your realtor can give you the specifics. A detailed lease should list the duties and responsibilities of each party; it is invaluable in protecting both you and the renter. Make sure the renter is accountable for minor upkeep such as moving the lawn, cleaning the gutter, etc.

7. Insurance:

Insurance rates vary, but insurance on a rental property is less expensive than your residence. This is because you will be getting a landlord's policy vs. a homeowner's policy; the possessions of the occupant are not covered. Don't skimp in this area--make sure the coverage is enough to rebuild the home should an accident occur, and check the policy each year, as construction rates can rise quickly.

Tip:

Consider a clause requiring the occupant to purchase renter's insurance. For about $20 per month, they will be reimbursed for their belongings should something happen to the home. It only takes one fire or flood to destroy personal possessions accumulated over a lifetime, and as the owner, you are not responsible for their loss. Prevention, therefore, is key.

Sound like a lot of work? After the initial fear of giving up a large sum for the down payment and closing costs, the renting experience is easy. Once in a while you will get a call in the middle of the night, but each month you will get a check in the mail that not only covers the mortgage, but includes a few hundred dollars to stow away for maintenance. In as little as a year, you should have five to ten thousand dollars for improvements and unforeseen expenses. Once you have the safety net, you can begin paying yourself back.

The best part? Depending on the prevailing rent and your initial outlay, you can own the home outright in much less than the standard thirty years, while someone else pays the rent. Or, you can sell it after a few years and keep the profit.

Being a landlord is not the fastest way to make money, but it is an excellent way to build equity you can tap into for emergencies, a new car, or retirement. Instead of working for someone else, consider investing in the rental market. Common sense and a good realtor are all you need to make it work for you.

This article has been submitted in affiliation with http://www.StockBee.Com/ which is a free online stock ticker quiz.

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All About Landlords Rental Property Insurance Information By Insurance Experts

2009-08-05T11:36:00.000-07:00

Your Landlord Guide to Important Rental Property Terms and Words
By Teo Zhenjie

Are you looking for a landlord guide to unravel the big words and confusing terms used by rental property owners? Our plain English landlord guide will explain every common word and crucial term that you will need to know.

1031 Exchange - Refers to the section 1031 of the U.S. revenue code. What makes it important is that it allows you to avoid paying capital gains taxes when selling your rental property if you use the money to buy another like-kind property.

Capital Gains Tax - The taxes you have to pay if you sell your rental property for a profit. Some countries do not require landlords to pay capital gains taxes.

Eviction - The legal process that rental property owners use to remove nightmare tenants who don't pay rent or break the terms of their rental agreement. As this can be a costly and messy process, it's highly recommended that you look for a landlord guide to do it property.

Fixed Term Tenancy - A popular type of rental agreement where there is a fixed starting and ending date.

Landlord Liability Insurance - Insurance that protects you in case you are being sued by your tenant for injury or losses. This insurance will cover your legal costs and any claims that are made by your tenant.

Notice to Quit - This is a written note that is commonly given to tenants in advance to end a periodic tenancy. Before you can file an eviction lawsuit, you will also have to give your tenant a written notice to quit as a final warning.

Occupant - An occupant is someone who is legally allowed to stay on your rental property as stated in your lease agreement. He is different from a tenant in that he is not responsible for paying you rent. An example of an occupant will be your tenant's children.

Periodic Tenancy - Another common type of lease that is renewed from one time period to another instead of having a fixed end date. A periodic tenancy can be week to week, month to month or year to year.

Section 8 Program - Also known as a housing choice voucher program. This is a U.S. government housing program that helps people with low income by paying 60 to 70% of their rent. As there are many rules regarding this program, read your section 8 landlord guide before accepting a section 8 tenant.

Squatter - Someone who is illegally living on your rental property. This usually happens when your tenant invites someone to stay over for a long time without your permission.

Subtenant - When your tenant re-rents your rental property to someone else, that person is known as your subtenant. In most cases, you will have little control over your subtenant so it is recommended that you do not allow them.

Surrender of Tenancy - When both the landlord and tenant agree to mutually end their rental agreement, the process is called a surrender of tenancy.

Tenancy at Sufferance - If the time period for your lease is over and the tenant continues living on your rental property without your permission, he will be known as a tenant at sufferance. In most cases, he has to continue paying you rent and you can file an eviction lawsuit to remove him.

Tenancy at Will - This is a more informal type of lease where there is no proper written rental agreement. It is commonly a verbal arrangement preferred by landlords who need temporary tenants.

Tenancy for Years - This is another name for a fixed term tenancy. For the full explanation, look for "fixed term tenancy" above.

Teo Zhenjie has been showing landlords how to manage their tenants and rental properties effectively on Propertydo http://www.propertydo.com - Visit his website today for your step-by-step landlord guide, free resources and forms.

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Tax Deduction - Essential to Landlord's Success
By Eric J. Slarkowski

While the amount may not seem significant to some, every property owner knows that the tax deduction allowed for rental property can make a significant difference on the bottom line. Those who own rental property should be sure to take advantage of the tax benefits of being a landlord.

Some of the common expenses that can be deducted when figuring income taxes are:

• Mortgage interest. Payments made to a lending institution for real estate loans usually include principal (part of the amount borrowed) and interest (charges for loaning the money). Rental-property owners can borrow to purchase property or to improve property. In addition, interest on credit card payments may be deductible if the purchase was strictly for the rental property. Rental-property owners should know, from the start, that interest expense must be at the top of the deductible list.

• Owners of rental property should take care to reap the benefits of depreciation of property. In most cases, this deduction is available after the first year of ownership and generally continues for 27 years. Property owners should consult with a tax adviser to make sure that depreciation is handled correctly.

• Rental-property owners know that keeping up with repairs is one of the major tasks of being a landlord. But repair costs are deductible for the year the costs are incurred. For example, if it is necessary to put new tile on the kitchen floor of a rental property, refinish the walls with new plaster or drywall, or replace old/broken windows, the labor and materials cost is deductible. These repairs must be necessary for the daily operation of the property and should not be improvements made to enhance value (capital improvements). Again, it would be wise to consult with a tax expert to make sure this deduction is taken properly.

• Some rental-property owners forget about the travel expense of owning property and miss out on what can be a significant deduction. If the owner must travel to the rental property to meet with tenants or to make repairs, for example, the travel expense may be deductible. Travel expenses incurred for visits to plumbers, electricians and contractors can also be included in tax deduction calculations. If the visit to rental property involves travelling to another city, it may be possible to deduct airfares, hotel bills and some other costs.

• Many rental-property owners conduct their business from their home, which allows them to deduct a portion of the home's square footage for business purposes. Other expenses associated with this home office may be deductible as well (separate phone, office equipment etc.).

Property owners who work with a knowledgeable tax adviser also deduct losses such as flooding and fire damage. The amount allowed for deduction can depend on the insurance coverage terms, and the loss may be figured as partial or full. This brings up another key item in a successful rental-property business - insurance. Landlords are allowed to deduct insurance costs (premiums) for their rental property. Types of insurance include: landlord liability, theft, fire, flood etc.

Property owners should also keep track of fees paid in connection with the rental-property business. This category can include fees paid to real estate advisers, property management businesses, attorneys, accountants etc. Those who own rental property should be aware that some expenses are not deductible under current tax codes. If an apartment remains vacant, for example, the property owner cannot deduct loss of income. New appliances and room additions are not generally deductible. The advice of a good tax expert is essential to a successful rental-property business.

Eric Slarkowski's publications can be encountered on a large number of web sites with information about cnc wood router. You can discover his writings on cnc router desktop at different sources for cnc router desktop knowledge.

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Landlord's Insurance - What is The Usual Standard Coverage?
By Nathan De Bond

I hope that this clears things up for people that are looking to find out more about Landlords Insurance and what exactly you can get cover for when you are renting out a property to tenants.

This Landlords Insurance website will provide you with any further information you may require.

Article Source: http://EzineArticles.com/?expert=Nathan_De_Bond

Texas Landlord Home Insurance Information
By Glenn Lamb

Texas landlord home insurance is different from a standard homeowner's policy in several ways. Because of this a landlord will usually get a specialized type of homeowners insurance. This is sometimes called a dwelling policy.

Personal property (contents) is not usually standard with a landlord home policy. There is often an option to get this at extra cost. That is a good idea if the home is furnished with appliances and or furniture. You will probably be able to select the dollar amount of this coverage that you want. Personal property theft is normally excluded from coverage.

Personal liability and medical payments to others coverage will probably by optional with a landlord’s home insurance policy. There will probably be an option to have liability coverage added with extra cost. This is usually inexpensive and I recommend getting liability coverage.

Texas has standardized packages of coverage and most landlords get a Texas Dwelling Policy (TDP1, TDP2, or TDP3 package.) TDP1 is the least expensive and covers basic risks. TDP2 covers some additional perils including rupture or bursting of water pipes, fall of trees, glass breakage, and collapse of building. TDP3 includes TDP2 plus trees, shrubs, plants, special form (broader coverage) on the building, and additional living expenses. (Please note that your actual policy may vary from my description and you should ask your agent to explain all details of any policy that you get)

In many cases I suggest the TDP3 policy because it has better coverage for only slightly more than a TDP1 plan. Then ask about your options to upgrade by adding things like some content coverage, personal liability, and medical payments to others coverage.

Your agent should discuss all available discounts with you. This can include things like an alarm system, newer home, updated electrical or plumbing, claims free, good credit, and senior citizen discounts.

Flood coverage will not be included with your policy. If you are in a high risk area this is essential. If the home is not at high risk the cost will be very low. I usually suggest getting at least some flood coverage.

Another consideration for landlords is a renter’s insurance package for the tenants. This is important for them and you. You want their property to be covered to reduce the possibility of a claim against you if they have a loss. For example, if there is a fire and they have $50,000 in property destroyed, they might claim it was your fault because the home had an issue with the electrical system. You could also have exposure for a liability claim in the event of an injury. I suggest requiring the tennant to have a high level of liability coverage. A renter’s package policy is usually inexpensive and is typically in the $100 to $300 per year range. Consider making renters insurance a requirement in your lease. You may want to require proof of a 1 year paid-up policy at move in time. Ask your agent to advise you about how much coverage is sufficient.

Lamb Insurance Agency, (Farmers Insurance) Auto, Home, Life, and Business Insurance for Texas - http://Farmers Insurance Houston

or Homeowners Insurance Houston

If you have a rental property in Texas you can get more information at my Houston landlord insurance website. Or call my office at 281-537-2700.

Article Source: http://EzineArticles.com/?expert=Glenn_Lamb

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All About Landlords Rental Property Insurance Information By Insurance Experts

2009-08-05T11:33:00.000-07:00

Letting Property - A New Landlord's Questions and Answers
By Chris Horne

1. I want to let a property do I need a tenancy agreement?

No, there is nothing in law to say you have to have a tenancy agreement. However, if a dispute arises then it could be very difficult to prove who was right and who was in the wrong. I would always recommend that a landlord uses a solicitor drafted Assured Shorthold Tenancy.

Things to look out for in a tenancy agreement:

• Protects your rights as a landlord.
• Produced by a legal expert.
• Suitable for multi lets.
• Suitable for use by a company.
• Does not include clauses which were recently deemed as 'unfair' by the Office of Fair Trading.
• Allows the landlord to charge for the cost of collecting late rent payments.

2. Can I increase the rent?

A landlord can increase the rent at anytime providing the tenant agrees. If they don't, a landlord will have to wait to the end of the fixed term of the tenancy, or, where it's a periodic tenancy. then the landlord will have to follow the statutory procedures if the tenant refuses to agree to the rent increase.

3. I want to get rid of my tenant because they've stopped paying the rent, surely I can just kick them out?

No. Don't even think about it. A tenancy gives your tenant certain rights to stay in a landlords property, even if they do many things that the landlord thinks are wrong : like not paying rent, being anti-social, failing to look after the rental property. If a landlord tries to evict them without going through the right procedures a landlord could end up with a big fine or even a prison sentence. Even phoning them at work could be considered to be harassment of the tenant. Landlords need to tread carefully.

4. I want to let my property but do I need a letting agent?

No. Landlords can do it all themselves and save a small fortune. A letting agent will look to charge a landlord as much as 15% of the rent for letting and managing the rental property. If a landlord is able to let the rental property themselves this will save a great deal of management costs.

5. I want to get my property back. How do I go about it?

This requires a landlord to seek possession. How a landlord gets possession will depend on the specific circumstances, and getting things wrong can be costly. Some landlords seek legal advice Or some landlords choose to do it themself, but need to follow the possession instructions carefully.

6. Do I need to take a deposit?

No, landlords don't need to take a rental deposit. In fact many landlords letting to students or low value rentals don't bother taking a rental deposit. If a landlord does, they will need to use one of the Governments approved tenancy deposit schemes or risk a big fine.

7. Do I have to declare my rental income to the taxman?

Yes. Rental income is assessed under the land and property section of a landlords self- assessment return. There are a lot of expenses that a landlord can set off against their rental income, some landlords might even make a rental loss ( especially in the current harsh economic climate ). Losses can be carried forward and set off against future rental profits.

8. The tenancy is coming to an end what do I do?

If a landlord has set a fixed term tenancy, say a 6 month tenancy, and want to carry on with the same tenant, the landlord has got a number of choices. Get the tenant to sign and complete a new tenancy agreement. Amend the terms of the existing tenancy including the dates of the tenancy and get the tenant to sign and agree the variation. Allow the fixed tenancy to lapse and it will then run on as a statutory periodic tenancy in which case the tenancy will just carry on with the same from rental period to rental period until the landlord or the tenant bring it to an end.

9. Do I need a specialist landlord insurance policy?

Yes. Normal household insurance won't cover your property if you start renting it out. This is because household policies do not cover buildings, contents or the landlord for third party liabilities while the buy-to-let property is being let out, read more on landlord insurance cover options.

10. What's an EPC? Do I need one?

An EPC or Energy Performance Certificate has been introduced by the Government to measure the energy efficiency of a rental property. Since the 1st of October 2008, any property that is being marketed for rent needs to have one. Find out more about the EPC.

Chris writes for propertyhawk.co.uk a site dedicated to UK landlords and free tenancy agreements. Including free online property management software.

Article Source: http://EzineArticles.com/?expert=Chris_Horne

Does Owning Rental Property Help You on Your Taxes?
By Rocco Beatrice

The answer to this question will depend on a variety of factors. The determining factors are included if you have a mortgage or own the rental property outright. In order to receive any tax breaks on property, you will need to itemize your taxes. This task should be dedicated to a CPA so it is assured that everything is done correctly and you will receive the tax benefits.

On the IRS website, you can learn how rental income should be reported when you file your taxes. There are some important things to take into consideration when filing. Always remember that any rent you receive for tenants is considered to be a source of income. If any improvements are made to the property by the tenant without charging you for those improvements, the value of the improvements is also considered to be income. If you have taken a security deposit that will not be returned, this is income.

It is very important for landlords to keep meticulous records of any and all transactions that are associated with the rental property. Even if the additional income hurts your tax return, the IRS demands complete accuracy when you report any income that resulted from a rental property.

While this may all sound overwhelming, there is a positive side. Rental properties are considered tax-deductible. This means that anything you do to maintain the rental property that incurs an expense, can be deducted from your taxes. You must have all documentation to support the claims of these expenses. If you file for a deduction, you have to support the claim with concrete proof.

It is important to know what expenses are eligible for a deduction. Basically, as long as the expenses are related to the upkeep of the property or the administrative tasks associated with being a landlord, you can submit the expenses and claim them as a deduction. This can include any repair costs, interest that you pay for the mortgage and equity loans and the cost of advertising to find new tenants.

This does not mean that every single expense will be deducted. If you spend money that exceeds the amount of income you receive from rent, you will find that many of your expenses will not be deducted. If you have questions as to what can be deducted, it is best to consult with a CPA or contact the IRS. There is no rule that governs rental properties because every situation, and every landlord, is different.

Owning rental property can help on your taxes in other ways as well. In addition to the standard deductions, there may be other ways to save on taxes. In some cases, a landlord will obtain a home equity loan on the rental property. They will then use the proceeds to invest in insurance products that are non-taxable. This is legal and can be claimed on your taxes. You will need a qualified CPA to help with filing your taxes to make sure that your claimed deductions qualify. Rental property is a great source of extra income and it can save a lot on your yearly taxes.

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Do You Have Adequate Landlord Protection Insurance?
By Darren Cruise

Obtaining suitable landlord insurance is one aspect of property investing that you can't afford to overlook. Malicious damage by a tenant, loss of rental income & legal liabilities are just some of the hazards you will face as a property investor and are reasons why many investors hand the responsibility for running their investment over to a property manager.

However, obtaining sufficient landlord protection insurance is one responsibility that you should take care of yourself - even if you do end up going with a policy recommended by your property manager (more on this a little later).

When assessing the fine print of an insurance policy, ensure it does not contain any clauses that will negatively impact you from being covered for all the common tenancy problems. Often property investors take out a building policy that has been loosely marketed as a landlord product and assume that they have adequate cover.

The fine print in these policies frequently reveals clauses excluding events such as malicious damage by a tenant, accidental damage by a tenant, legal liability & cover for the loss of rental income - all essential components that you require coverage for.

Landlord insurance requires special inclusions and is only offered by a limited number of insurers. Before signing up for an insurance policy ensure that it covers the following risk factors:

Malicious Damage/Accidental Damage - This covers damage caused by a tenant, which does not occur as a result of normal wear & tear. This includes holes in walls, smashed doors & intentional damage to floor coverings as well as unintentional damage cause by honest tenants.
Rent Default & Theft - When a tenant owes you back rent, skips town & steals some items a properly structured landlord protection insurance policy will cover these events. However, there will be a maximum amount that can be paid out by the policy, normally a certain period of weeks rent.
Loss of rental income - This will cover you in instances where malicious damage/accidental damage to your property has resulted in a loss of rental income whilst repairs are carried out. Loss of rental income can also occur from other events such as absconding tenants, the tenant defaulting on payments, death of a sole tenant etc.
Legal liability - Be sure that your insurance policy covers you for public liability. This will protect you for any event whereby a tenant (or any of their visitors) suffers an injury and subsequently sues you for damages.

Competent property managers are a good starting point in sourcing suitable insurance as it is in their best interests for their clients to be adequately covered. The reason for this is that the property manager is at risk of losing income if their uninsured client ends up losing their assets in the event of a tenant making a claim against a them.

Ensure you compare as many policies and insurance premiums as you can before making a decision on the best landlord insurance policy for your particular circumstances.

Article Source: http://EzineArticles.com/?expert=Darren_Cruise

All About Landlord Home Insurance
By Nicholas Raflesia

Do you really know about home insurance? Especially do you know if you need a homeowner's policy? A family that lives in a home that they possess will have different coverage needs then a family who rents a home. Likewise, landlords and people who possess condos may not need all of the coverage the people who reside and possess in stand alone houses do. You will obtain the best coverage at the most affordable cost if you understand what you have to cover, and what things are already covered by another policy.

Any landlord who possesses a small to a large property owner will need a landlord home insurance to protect his assets. As you have a good quantity of equity attached to your property and require a certain quantity of revenue from your property, you would want a good appreciation for your property.

Landlord insurance protects your revenue any advantages from tenant's rent. You as a landlord are more concerned on insuring your own contents rather than tenant's contents. It is the job of the tenants to insure his content through a separate tenant insurance cover. It can be completed through normal process of home insurance policy. With this home insurance, a landlord can insure all contents that he possesses in the property.

Landlord home insurance policy is similar to any other homeowner's insurance policy. Conditions of insurance for properties are subjected to all the different kinds of landlords. If you are a landlord, you should undeniably encourage your tenants to purchase home contents insurance for them.

As a landlord, it is significant you obtain a comprehensive cover deal that will look after the home structure, land area and home content. Please take you time to research the fine prints in the policy you are purchasing. This is very significant if you want to have peace of mind during the active period of your landlord insurance contract.

In actual fact, a number of landlords go as far as lowering the rent slightly just to encourage their renters to take on home contents insurance.

If you want to get some excellent resources on home insurance, please visit my site on All about Home Insurance or Landlord Home Insurance

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All About Landlords Rental Property Insurance Information By Insurance Experts

2009-08-05T11:30:00.000-07:00

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Landlord's Protection to His Let Out Property - Tenanted Property Insurance!
By Kirthy S

A landlord may find landlord building insurance quite essential without realizing the need for tenanted property insurance. There is a difference between the two. A rented insurance will cover your assets or contents in the rental unit. On the other hand, a building insurance covers your property externally and not for its content. Hence, there is a need for such insurance to safeguard the content in a rented unit. As a landlord, you should not overlook rent insurance of your property.

A tenant can also get a coverage under tenants content insurance. In case, a tenant damages the content of a landlord while he is residing in the rented house, the chances are the landlord will take the costs of repair from your deposit. In order to safeguard this deposit paid to the landlord, you can avail a tenant content insurance at a minimal price.

In some cases, a homeowner's insurance policy will not be comprehensive enough. It may not cover damage caused by natural catastrophe or damage to art or loss of or theft of jewelry over a certain amount. In such cases, you need an extra cover and rented insurance on property will help if your house is in high risk area for earthquakes, flood, fire or others.

Rented Insurance on Property is also known as let Insurance on Property or tenanted Insurance on Property. When a landlord does not reside in the vicinity of his property let out, he will be risking his property. As a tenant may damage his property and its structures. And it is essential to cover everything right from fixtures and fittings to loss of rent. Let Insurance on Property caters for residential as well as commercial let property, unlike other insurance which covers only residential property. This could comprise of holiday homes or unoccupied properties, student let outs, DSS and asylum seekers.

Let Insurance on Property is a comprehensive cover which covers landlord's buildings and/or contents insurance as well as holiday homes. A landlord would have invested a hefty some in his building and letting it out to a second party would be jeopardizing his investment and hence his investment requires protection, property owner uses his property as an extra source of income and that income needs protection. Such property insurance coverage is indispensable to any landlord planning to let out his property.

It is also observed that a UK holiday home insurance policies and other home policies cover, differ in two ways, firstly when the property is unoccupied and the other being valuables and personal possessions. This is however, not included in the holiday home insurance. Read the terms and conditions of any insurance policy and then opt for the right one.

Kirthy Shetty, Platinum author
Get all your tips related to Tenanted Property Insurance from:
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Low Cost Landlord Insurance - How to Slash Your Monthly Premiums
By Teo Zhenjie

Do you need a low cost landlord insurance for your rental property? Then find out what are the easy and proven ways of slashing your insurance costs right now.

Reduce Your Insurance Costs by Picking the Right Tenants

Most insurance companies will be willing to offer you a low cost landlord insurance if your tenants are the type who stay home more often. The reason for this is very simple: When your tenants are at home, they will effectively lower the risk of any fire breakout or theft.

This will in turn reduce the costs of your home contents and fire safety insurance. Elderly tenants and housewives are generally considered the homely types by insurance companies.

Most insurance companies do not offer policies for certain types of tenants whether it's by their own choice or by law. People living on subsidised housing and students usually fall into this group.

If your tenants are working full time with stable incomes, most insurance companies will be more than happy to work with you. With a wider range of policies to choose, it's highly likely that you will find an insurance policy is cheaper and suits your landlord needs better.

Upgrade the Security and Fire Safety of Your Rental Property

By improving the security of your rental property, you will be protecting it against burglary and vandalism. The most effective and common way of achieving this is to install bolt locks and alarm systems. This is helpful in boosting your rental profits in 2 ways.

Firstly your insurance company will charge you less for your home contents insurance. This helps you cut down on your property expenses. Secondly a rental home with better security makes it more attractive to tenants as well. This means that you can not only ask for a higher rent but also have a wider pool of potential renters to choose from.

Another effective way of getting your hands on a low cost landlord insurance is to reduce the risk of fire outbreaks on your rental property by installing fire alarms and fire extinguishers. Lower risk of fires means you get to enjoy savings on your fire safety insurance.

Make Sure that Your Insured Building Sum is Stated Correctly

Many landlords tend to be overly careless when they are giving the value for their insured building sum.

If you want a low cost landlord insurance, one crucial fact you have to know is that your insured building sum is not equal to the market value of your property. Insured building sum is the cost of replacing your entire rental home in case it gets wiped out.

What this means is that your insured building sum will always be lower than the entire price tag of your rental property because it does not include the land where your house sits on. This difference can be huge especially if your rental property is in a prime location.

Overstating your insured building sum will only increase your monthly premiums unnecessarily because you are paying for coverage that you don't need.

Teo Zhenjie has been showing landlords how to manage their tenants and rental properties effectively on Propertydo http://www.propertydo.com/ - To learn more important tips on low cost landlord insurance, visit his website today for step-by-step real estate guides, free resources and forms.

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Landlord Insurance - Don't Forget to Protect Yourself With a Business Owners Policy
By John Mazzara

It is always important that you work to protect yourself, whether you are a landlord that is renting out a home or whether you are the tenant who is renting from a landlord. You never know what can go wrong on both ends of the deal, so having rental insurance is definitely a must. Of course you'll find that there are particular options for renters when it comes to renters insurance and then there is special rental property insurance for landlords available as well. Although many people may think that a landlord should be insured, they often forget to realize that it is so important that they have insurance while they are renting as well. So, let's take a look at both landlord rental insurance and renters insurance for tenants.

Landlord Rental Insurance
Having your own insurance as a landlord is very important if you are going to rent out properties. It is important that you are well protected when you are involved in renting property and good insurance can help to keep you protected if you lose income, if there are legal disputes, and if something bad happens to your property. There are a variety of different options available and coverage for many different situations that is available. However, there are some basics that you'll always want to make sure are included in your policy. Here are the fundamentals of a policy for a rental insurance policy for landlords.

- Property Coverage - First of all, you'll find that property coverage is going to be important if you own rental property. When you go with landlord rental insurance, you'll want to take a look at your policy to see what kind of property coverage you have. You'll want to make sure that your insurance policy covers the rental building itself, any other structures that you have on the property, such as the shed or a garage, and your own personal property that may be stored on the rental property should be covered as well.

- Protection from Lawsuits - Another important thing that you need to look for when it comes to your rental insurance as a landlord is protection from lawsuits. When you are renting out property, this is a huge risk that you will face. If people get injured while they are on your rental property, they could try to sue you. For this reason, having good insurance that will protect you against these lawsuits is important and will definitely come in handy if you every deal with this type of a problem.

- Protection in Case of Loss of Rental Income - Loss of rents coverage is also very important if you are a landlord. If for some reason you end up not getting the income that you are supposed to from your tenants, you still have to come up with the money to pay the mortgage. This type of insurance helps you to make sure that you'll be insured in case you do lose your rental income.

Renters Insurance for Tenants
Of course renters face many risks when they are renting as well and renters insurance is definitely an important purchase. If disasters strike, you'll be at the same risk as someone that owns their own home. While the landlord probably has their own insurance, it is not going to protect all of the things that you own. For this reason it is so important that you have good renters insurance that will provide you with the coverage that you need for all your goods when you are renting. So, let's take a look at some of the things your insurance will cover.

- General Coverage - First of all, let's take a look at the general coverage that you'll get with renters insurance. Your personal property will be protected by your insurance in the case of several different types of perils. Some of these perils that are covered include hail and windstorms, aircraft and vehicle damage, volcanoes, lighting, fires, riots, falling objects, theft, vandalism, smoke, explosions, weight of snow, accidental cracking of water heaters and air conditioners, water damage from appliances, sprinkler systems, air conditioning, and plumbing, freezing of the plumbing, and electrical current damage. Of course it is important to realize that earthquakes and floods are not included. If you think that you may have a problem with either of them, then consider a separate policy.

- Taking Inventory of Belongings - When you are purchasing renters insurance, you'll want to take the time to take inventory of your belongings. This is important, since you'll want to be reimbursed if something happens. You can do this by keeping receipts, documenting with photos or videos, and writing down all the items and serial numbers of valuables that are in your home.

- Other Benefits - There are other benefits to going with rental insurance as a tenant as well. Often your policy will provide you with liability coverage if some falls and sues you. Also, if you have to move out because of a problem in the rental, often the insurance will cover the expenses of living somewhere else if you have to.

John Mazzara CFP CLU CHFC CEBS CMB MBA MS is an independent financial planner in the Twin Cities, MN. Officing out of Edina, Minnesota-John is centrally located within the 7 county metropolitan area. John owns three separate businesses-a licensed real estate broker associate selling Minnesota Real Estate since 1986-affiliated with RE/MAX Associates Plus http://www.selling.mn - an independent CFP-certified financial planner since 1989 with an independent Minnesota financial planning firm-Financial Planning Associates and the owner of a Minnesota mortgage broker firm-Venture Development Inc-specializing ins residential, commercial and investment mortgages http://www.ventureloanapp.com

John has a wealth of knowledge and experience that surpasses most other advisors. If you are looking for someone to help you in the areas of real estate sales/purchase, mortgages, or and/or financial planning and insurance you should call John for a free 1 hour consultation to see if he can meet your needs. 952-929-2577.

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Maximizing Deductions on Your Real Estate Rental Property
By Thomas Corley

Do you own rental property that's been producing a marginal profit or a loss the past few years? Short of raising the rent again, you're fighting an uphill battle as your expenses continue to grow. But one way you can maximize your rental dollars is to squeeze every last tax deduction from your activities. A little extra diligence can boost your profits or turn red ink into black. Surprisingly, many landlords don't grab all the deductions they're entitled to. Following is a list of 10 key landlord deductions that you should be taking advantage of.

Top 10 deductions for landlords

1. Interest. It's usually the biggest deduction on the list, so don't forget it. You can deduct mortgage interest on loans to acquire or improve your rental property, plus other interest incurred for assets or services used in the rental activity.

2. Depreciation. Most likely, this is the second-biggest deduction. You must depreciate residential rental property over 27.5 years.

3. Local travel. Track your auto expenses related to the rental activity. This isn't limited to travel to and from the rental property. For instance, you can deduct trips to the hardware store or office-supply store. Use the standard mileage rate to figure your deduction. For 2007 the standard mileage allowance is 48.5 cents per mile.

4. Long-distance travel: If you're required to travel overnight for your rental activity, you can deduct your airfare, lodging and other related expenses (including 50 percent of the cost of meals). Also, you can mix in a little pleasure, as long as the primary purpose of the trip is related to rental activity.

5. Repairs. Write off the cost of "ordinary and necessary" repair costs in the year in which they're incurred. These include expenses for repainting, fixing gutters and leaks, plastering and replacing broken windows. Note: The cost of improvements, as opposed to repairs, must be capitalized and added to your basis.

6. Insurance. You can deduct insurance premiums for your rental property, including fire, theft and flood insurance and landlord liability insurance. If you have regular employees, you can also write off the cost of health insurance and workers' comp insurance costs.

7. Salaries and contractor fees. When you hire someone to work for your rental activity, you can deduct his or her wages as a business expense. Similarly, you can deduct fees paid to independent contractors-such as plumbers or landscapers-who provide services. You will be required to issue to any individual independent contractor a 1099 if you pay them $600 or more during the year. You may also be required to collect 7% in New Jersey withholding tax and remit that to the New Jersey Division of Taxation.

8. Professional fees. Generally, you can deduct the fees paid to professionals-attorneys, accountants, property management companies, investment advisors and the like-to the extent that the costs are attributable to your rental activity.

9. Home-office expenses. If you use a room at home for administrative tasks related to the rental activity-and the activity has no other principal place of business-you can deduct expenses attributable to a home office. Thus, you can deduct a percentage of regular home expenses (utilities, insurance, etc.) and the full amount of direct expenses, such as a separate telephone line. The use of the home office must be regular and exclusive.

10. Casualty losses. Finally, if your rental property is damaged by a sudden event, including vandalism or theft, you may be able to claim a casualty loss for the damage suffered (less insurance reimbursements).

Tom is a Certified Public Accountant, a Certified Financial Planner, CLTC (Certified Long-Term Care) and President of Cerefice & Company, the largest CPA firm in Rahway, New Jersey. Tom works with clients helping them manage their money, retirement planning, college savings, life insurance needs, IRAs and qualified plan rollovers with an eye towards maximizing tax benefits and minimizing taxes. Tom is founder of the Rich Habits Institute and author of "Rich Habits".

Article Source: http://EzineArticles.com/?expert=Thomas_Corley

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All About Landlords Rental Property Insurance Information By Insurance Experts

2009-08-05T11:24:00.000-07:00

Landlords insurance is defined as a policy to cover a property owner from financial losses connected with their property which they let out. Mainly a landlord insurance policy will cover the building itself with the option of including the contents left within. It covers standard perils such as fire, lightning, explosion, earthquake, storm, flood, escape of water/oil, subsidence, theft and malicious damage. Each insurance policy is different and may or may not include all these items. Most companies will provide the option to have extra cover on top of what is considered the standard cover. These may include things such as accidental damage, legal protection, alternative accommodation costs or rent guarantee insurance.

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Landlord Insurance - Top Tips For Property Owners
By Mark R Burdett

Landlords and Property Owners have many options when it comes to the management of their property or properties. From sorting everything on their own to employing the services of a property management company. Here are therefore some tips for Landlords and Property Owners to make sure their assets are protected:

What can you do to protect your property?

Landlord Insurance is available so that in the event of a loss (by an insured event) you will be protected and covered. In order to reduce the chances of a loss you can however take certain steps to help. These include:

- Make your property more secure by installing deadlocks on doors and locks on the windows.

- Install an alarm system. Many insurers will offer a lower premium because you have lowered the risk of loss through theft. For certain postal areas a minimum level of security will be required.

- Remove potential fire hazards from around the outside of the house as well as inside

- particularly around the kitchen.

- Make sure you have working smoke detectors and a suitable fire extinguisher. Put the extinguisher somewhere handy and make sure members of your household know how to use it.

What should you insure your contents for?

As a landlord, it's quite possible that the property that you are letting contains contents that you own. It is important to note these contents and ensure that you have provided adequate cover for them in your insurance policy. It might be worth doing a room by room inventory and working exactly what level of cover you require. Again though if you are in any doubt, just ask your Insurance Broker.

How can landlords minimize financial losses related to repairs and maintenance?

You can avoid many problems by maintaining the property in excellent condition. Here's how:

- Use a written checklist to inspect the premises and fix any problems before new tenants move in.

- Encourage tenants to immediately report safety or security problems such as plumbing, heating, broken doors or steps

- whether in the tenant's unit or in common areas such as hallways and garages.

- Keep a written log of all tenant complaints and repair requests with details as to how and when problems were fixed.

- Handle urgent repairs as soon as possible

- take care of any safety issues within 24 hours. Keep tenants informed as to when and how the repairs will be made.

- Twice a year, give tenants a checklist on which to report potential safety hazards or maintenance problems that might have been overlooked. Use the same checklist to personally inspect all rental units once a year.

Also, your commitment to repair and maintenance procedures should be clearly set out in the lease or rental agreement. Owning a property or a portfolio of properties can be very rewarding so follow these simple tips and make sure you and your properties are protected at all times.

This article was written by Mark Burdett, Marketing Manager of Northern Counties Insurance Brokers.

For further information on Northern Counties Landlord Insurance visit http://www.northerncounties.com/landlord-insurance.php

Business Insurance - http://www.northerncounties.com

Landlord Insurance - http://www.northerncounties.com/landlord-insurance.php

Article Source: http://EzineArticles.com/?expert=Mark_R_Burdett

Rental Property Insurance
By Josh Riverside

Renter's insurance is like homeowners insurance. You pay a monthly or yearly premium, as well as a deductible. The higher the deductible, usually the lower the monthly payments.

Article Source: http://EzineArticles.com/?expert=Josh_Riverside

Rental Property Tax Deductions That Will Slash Your Landlord Tax
By Teo Zhenjie

To cut down your landlord taxes, you can should to include as many tax deductions that you are allowed to use. The following are the common and important deductions that you can enjoy as a landlord:

1. The Depreciation Value of Your Property

When you buy a new rental home, you cannot claim the full amount that you paid for it as expenses right away. Instead your property is slowly depreciated over a long period of time.

2. The Premiums for Your Landlord Insurance

Being a landlord means that you will usually have to buy a series of insurance polices such as building insurance, home contents insurance and landlord liability insurance.

3. Interest on Your Mortgage and Credit Cards

If you pay for any of your rental expenses by credit card, you will also be allowed to deduct the relevant credit card interest from your total taxable income.

4. Your Property Repair and Maintenance Bills

5. Travelling Costs for Managing Your Real Estate

Article Source: http://EzineArticles.com/?expert=Teo_Zhenjie

Is Landlord Contents Insurance Crucial For Your Rental Property?
By Teo Zhenjie

Landlord contents insurance is a type of insurance coverage that compensates a landlord for property loss or damage. Contents insurance usually covers any fixtures, appliances, furnishings on the rental property that belong to you.

In some cases, it may also include outdoor fixtures like fences and garden fittings but every insurer is different so you should always read the fine print just to be sure.

There are two types of contents insurance for landlords. The first is standard insurance; the second is accidental. Landlord contents coverage usually insures the landlord's property in an amount ranging from $10,000 to $50,000.

As a landlord, you may be wondering whether landlord contents insurance is a worthwhile investment. There is no simple answer to this question since every landlord's situation and needs are different. Use the following information to help you decide whether to buy this type of insurance and what kind of coverage is best suited to your needs.

Choose Standard Landlord Contents Insurance if You Want Basic Protection

A standard policy typically protects you from damage caused to furnishings, appliances and fixtures during the normal course of a tenancy. Most landlords do not require this type of coverage for a couple of reasons.

The first reason is because a tenant's security deposit will typically cover any normal wear and tear. And secondly some landlords don't provide home furnishings for tenant use.

On the other hand, if you provide a fully furnished rental property for your tenants, it may be a good idea to purchase this type of coverage. This way any damages to furniture and fixtures can be paid for by your insurer. This coverage usually applies to normal wear and tear only.

Go for Accidental Landlord Contents Insurance if You Want More Protection

In contrast to standard insurance, accidental coverage will pay insurance proceeds for damages that may occur due to tenant negligence and other types of accidents or disasters. For instance, this type of coverage might apply if a tenant rips your sofa when moving out of the property or if a fire out break destroys your furnishings and fixtures.

Most insurance policies will provide coverage in the event of theft or vandalism, tenant negligence, fires, floods, storms, and explosions.

Just to be sure, it's important to read the fine print before purchasing a policy. You will also want to find out whether outdoor structures are covered. For example will you be compensated if your tenant accidentally damages the fence with her car?

Landlord insurance will only cover furnishings that are provided by the landlord. If your tenant wants coverage for his or her own belongings, then they must buy a separate renter's insurance policy.

Should You Purchase Landlord Contents Insurance for Your Rental Property?

In most cases, a standard or comprehensive contents insurance policy is not necessary unless the landlord provides most or all of the furnishings for a tenant.

For unfurnished properties, simply make sure that you collect enough security deposit to cover daily wear and tear. On the other hand, an accidental policy is a good idea to protect your fixtures and appliances in case of accidental damage or natural disaster.

Teo Zhenjie has been showing landlords how to manage their tenants and rental property effectively on Propertydo http://www.propertydo.com/ - To learn more important tips on landlord contents insurance, visit his website today for step-by-step real estate guides, free resources and forms.

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