There are many reasons why people invest in properties. You may be managing rentals in your retirement or making a career of being an investor. Owning an investment property or multiple properties should be treated like any other business.
There are still risks even when you do your due diligence before and after investing in a commercial property. It’s wise to make sure you are protected legally, especially when wearing the official title of landlord. How can you protect yourself from losing all your investment properties and your primary residence if sued? Set up a Limited Liability Company and transfer ownership of all investment properties to the LLC. Some investors set up one LLC for all properties or separate LLCs for each property. Another option is to consider liability insurance.
Not taking care of an investment property, when you know maintenance needs to be done, can lead to a lawsuit. Sometimes property owners claim to lack the time or funds for structure repairs, updating locks, and the security system. A priority for property owners is keeping building occupants safe. Be honest about your time upfront and hire a property manager if you cannot take care of this yourself. Know what the expected repairs are before purchasing a property. Set a maintenance schedule to take care of painting, landscaping, routine building inspection and more. These steps will reduce the likelihood of negligence accusations.
The amount your property is insured for should match the property value, which you learned from the property appraisal when you first purchased. One mistake owners sometimes make is assuming the insurance is adequate years after the initial purchase. This is also true with what the insurance covers. Do you know if all types of hurricane damage are covered? What about flooding? Know these details upfront and encourage your renters to purchase renter’s insurance.
At Ullian Realty our brokers are knowledgeable of all the important details commercial property owners need to stay on top of to successfully protect investment properties. Our brokers have a combined experience of over 50 years working with property investors in Brevard, FL. Call us today to learn more.
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