Are you either a landlord or property manager? If so, what do you worry about most? Property owners and managers typically worry about tenants not paying their rent or maliciously damaging a property. Unfortunately, both fears are legitimate. There are bad tenants who cause problems. Just as there are good tenants who find themselves in bad situations.
Constantly worrying about rental payments and malicious damage is no way to manage a property investment. A better way to go is Scheer Landlord Protection, an insurance product that both reduces risk and boosts landlord confidence at the same time. It is an insurance product that completely changes the rental property game.
Reducing Risk for Landlords
Reducing risk is easy to understand, so let’s start there. A Scheer Landlord Protection insurance policy protects against financial loss in the event of a failure to pay rent, malicious tenant damage to property, and costs associated with eviction.
Risk mitigation is enough reason on its own to consider Scheer Landlord Protection. But we believe that the boost in confidence Scheer Landlord Protection gives landlords and property managers is an equal benefit. You might even argue that it is a greater benefit. Never underestimate the power of confidence in helping a landlord become a better investor.
How Scheer Landlord Protection Boost Confidence
Landlords are so fearful of tenants not paying rent that it dictates much of what they do. For example, the SmartMove survey shows that some 59% of landlords believe that steady income is more important than credit history, yet 56% will not accept applicants whose credit checks reveal a poor history.
The average landlord requires potential tenants to have a monthly income at least three times the rental rate. If the tenant has a history of prior evictions, a landlord is less likely to approve that tenant. Finally, the average number of properties owned and/or managed is three, making the prospect of tenants not paying their rent even more risky.
Because Scheer Landlord Protection protects rental income against delinquent tenants, both landlords and property managers can approach their properties with more confidence. They don’t have to worry that a given property will be a loser as long as it’s occupied by a qualified tenant. They know that if a tenant should stop paying at some point down the road, Scheer Landlord Protection will protect rental income as they work through eviction.
This boosted confidence has a ripple effect that leads to other things:
- Property Managers More Willing to Take New Clients. Property managers are as particular about their clients as landlords are their renters. When Scheer Landlord Protection is in play, property managers are more willing to take new clients because they know their own income is protected against delinquent renters. Scheer Landlord Protection makes it easier for property managers to grow their businesses by growing the number of clients they take on.
- Investors Are Willing to Invest More. Scheer Landlord Protection gives investors both the confidence and motivation to invest in more properties. Where a landlord might own a single unit without Scheer Landlord Protection – and constantly worry about loss of income at the same time – the extra confidence insurance brings to the table makes it easier for the investor to see his way clear to purchasing a second property, and then a third, and so on. Your portfolio as an asset becomes more valuable if most of your landlords are insured with Scheer Landlord Protection.
- Insurance Makes Banks More Confident. Property investors take full advantage of bank loans to grow their portfolios. However, banks may be reluctant to lend on properties that have a history of problems. Insurance takes care of that. Banks are more willing to lend when they know properties are insured against lost income.
Confidence is a major component in successful property investment. It’s no different than any other investment. When confidence is high, everyone involved in a particular asset is more willing to take the risks necessary to enjoy the return. The lower the risk, the greater the confidence. That’s what landlord risk insurance is all about.
Confidence and risk go hand-in-hand in the property investment game. Reduce the risk of lost income due to bad tenants, and you boost the confidence of landlords and property managers alike. From landlords to property managers to banks, everyone involved in the investment circle benefits from lower risk and greater confidence.