Its January 2019, new year and new start. In review, Hurricane Florence impact on rental property owners was wide and varied. Some owners’ investments are now repaired, and tenants are settling in while others are still waiting to begin repairs. Some got enough money to do the repairs and others are fighting insurance companies to get the money needed for repairs. Some people do not have the deductible to get repairs started.
So now is a good time to review insurance coverage with your agent. Ask for a rental policy. This can be helpful if you have damage and no rent coming in because they have loss of rental coverage. Make sure checks get payable to you or your contractor and not the bank. Yup, heard that happened. Check was made payable to the bank and the owner. Then owner had to get 3 bids for everything delaying the repairs even longer. Ugh.
Rental property can be a source of great income, the opportunity does not come without risk. Planning and discussion can help reduce the risk. It is hard to beat the income potential of a tenant paying the mortgage payment and some day you get to cash in for retirement. Don’t forget the depreciation and tax benefits. As always, speak with your accountant and financial advisor.