Renting out part of your home
can be a great way to help pay
off your mortgage. But have you
talked to your home insurance
provider about these changes?
In today's video, we're going
to be going over the home
insurance considerations for
your rental unit, what you need
to know about visiting and
entering your rental suite and
other commonly ask questions
for new landlords who have
rented out a rental suite.
So let's begin.
I'm going to be going over some
examples that could affect your
home insurance. If any of these
examples or scenarios relate to
you, I recommend you contact
your home insurance provider so
you can discuss the specific
details and to make sure you
have the right coverage for
your rental suite. The first
scenario. Your home, which
was originally insured as a
single family dwelling, has now
become a two family dwelling.
If you failed to let your
insurance provider know about
these changes in the event of a
loss or a catastrophe, you may
be without coverage. Scenario
two. The replacement costs of
your home has significantly
increased because you've
finished the basement suite.
You'll need to adjust your
property coverages accordingly
to make sure you have the right
coverages in the event of a
total loss. The third
scenario, if you have any
furnishings in your rental
suite, such as washers, dryers,
couches or draperies, you may
not have coverage for this
unless you specifically
selected landlords property
insurance. The fourth scenario.
You could be counting on the
rent payments to help pay your
mortgage. In an instance where
there's a fire and the renters
or tenants need to move out,
you want to make sure you have
rental income insurance.
This will help cover those lost
revenues in the event when you
need to rebuild and repair the
property. The fifth scenario.
With more people living in the
home means there's a higher
liability risk. You should
consider talking to your
insurance provider about
adjusting, your premises and
personal liability.
And the last scenario, if
you've converted the garage
into another bedroom, your
detached structures coverage
may not apply anymore and you
may need to upgrade this to a
second dwelling so you have the
proper coverage. A rental suite
can be a dream come true and
helping you pay off your
mortgage. But if you don't
insure it correctly and if
there is a disaster or a
catastrophe, this could put you
in a dire financial scenario.
So really make sure you have
the right insurance coverage
and if you're unsure, you
should speak with an insurance
agent.
As a landlord, you know how
important regular visits to the
rental property are. Even if
you've done a thorough job in
screening and selecting your
tenants, regular visits to the
unit will ensure that the
property is being properly
maintained. And unless you live
right next door and can keep a
constant eye, you'll need to
make arrangements so you can
visit the property. You can do
a drive by the property
whenever you like. But when are
you actually able to go inside
and view the rental property?
This is a sticky issue for most
landlords. There are laws and
regulations pertaining to
around when and how you can
enter the rental property.
For instance, in British
Columbia, there's laws and
regulations set out that gives
renters the exclusive
possession, reasonable privacy
and peaceful enjoyment of the
property. If you drop in
without giving proper notice,
you could be in violation of
these laws and there could be
harsh consequences for you to
pay as a landlord.
Generally, there are about five
conditions a landlord must
follow to be able to comply
with the regulations and laws
to allow them to enter the
rental property. The first
reason is that there is an
emergency and to prevent
further damage, the landlord
must enter the property. For
example, in an instance where
the landlord must enter the
property to protect damage of
the rental unit and where there
is insufficient time to give
notice, the landlord is able to
enter the property. The second
condition is the renter is
given written notice not less
than 24 hours and not more than
30 days before.
The third condition, it's
permission is simply granted by
the renter. In instances like
this, we still recommend that
you document that communication
through email or text in
instances where you simply show
up and permission is granted,
later down the road the renters
could say that they only
granted you permission because
they felt intimidated. That's
why having that text or email
communication is important.
The fourth condition is
entering the rental unit to
complete any services that were
agreed upon in the rental
agreement. And this could
include housekeeping or
cleaning the home. And the
fifth general reason is that if
it looks like the property has
been abandoned. For example, if
you notice the renter hasn't
paid rent in a while and the
property looks vacant.
These five conditions will
generally apply to your
province or state. However,
there could be other conditions
and rules and regulations in
place that would allow you to
enter the rental unit.
So be sure to check the
legislation in your local
province and state.
When you, the landlord, provide
written notice to the renter to
enter the rental unit, you'll
need to make sure that the
written notice has two things.
First, is the reasonable
purpose to enter the unit.
And second, a time.
No earlier than 8 a.m.
and no later than 9 p.m.
There could be instances where
the renter still denies entry
to the rental units if they see
the reason you provided as not
being a reasonable purpose.
So what is a reasonable
purpose? Well, there are a few
things here we're gonna go
over. One, you need access
to the unit to make repairs to
the rental property.
Two, you need to inspect the
rental property for any
damages. And three, you
need to show prospective
renters or buyers the unit.
If they can't agree and the
landlord prevents the renter
from having reasonable privacy
and quiet and peaceful
enjoyment. The renter could
take this to arbitration and in
instances like this, the
landlord's ability to enter and
view the rental property could
be severely limited or
suspended altogether.
If they can't agree, and the
landlord prevents the renter
from having reasonable privacy
and quiet and peaceful
enjoyment, the renter could
take this to arbitration.
In instances like this, the
landlord's ability to enter and
view the rental property could
be severely limited or
suspended altogether.
To avoid problems with viewing
your rental property, there are
a few things you need to keep
in mind. One,
always gave the proper notice
to your renters. Two,
make sure you have a reasonable
purpose stated, such as
inspecting the unit for any
damages. And three,
always record your reason and
time of entry just to have a
record for yourself. We
recommend that you discuss
visits and inspections with the
renters beforehand.
That way, if they know you're
going to be making regular
inspections, they won't be
surprised and the process will
be much smoother. And
any regular inspections will
give you peace of mind that
your rental property is being
properly maintained and you
don't have to worry about your
renters damaging it.
There are many aspects that can
qualify your rental suite as
legal or illegal.
For instance, in British
Columbia, the unit needs to be
registered with the city it
resides in and the rental suite
also needs to meet the building
codes and requirements for that
area. And while some landlords
do rent out unauthorized or
illegal suites, they do face
the risk of having expensive
lawsuits against them or having
to return that home to a single
family dwelling or
maybe make expensive repairs or
upgrades to the building, in
order for it to be considered a
second dwelling that someone
can rent out.
Lastly, there could be other
financial consequences around
that rental income that you've
collected and whether or not
it's legitimate.
There is no specific notice
that you as a landlord have to
provide the renter if you wish
to provide them written notice
for entry. You just need to
make sure you stated the
reasonable purpose and the plan
time that is within the 8 a.m.
to 9 p.m. time slot.
In most situations, a simple
text or email will suffice.
We don't recommend that you
phone them as text and email
can leave a paper trail, and
this could come in handy down
the road should the tenants say
they never actually gave you
permission in the first place.
Creating a sticky situation for
both yourself and your renter.
By way of communicating via
text or email, you can track
the communications so you can
protect yourself as a landlord.
So now you should have a full
understanding of how and when
you're allowed to enter your
rental suite. And you'll also
need to review your policy for
the specific home insurance
considerations if you have a
rental suite in your home.
So if you're looking for a home
insurance quote or looking to
point your renters to a
reputable renters insurance
provider, you can visit
Squareoneinsurance.com