Let’s face it: real estate can be a tricky business. With so much red tape and compliance considerations, there are many potential pitfalls to navigate when operating a property management company. That’s why it’s so important to keep your wits about you at all times—and protect your home from legal issues. If you’re starting a property management firm, here are 10 simple ways to protect your home and yourself from potential legal issues:
Table of Contents
- Hire a Professional Property Manager
- Get to know your local regulations and laws
- Protect yourself with insurance
Hire a Professional Property Manager
The property manager you choose to take on your homes will be responsible for many facets of your business—everything from finding tenants to collecting rent and fixing plumbing issues. In fact, managers will often handle everything from the initial application process to evictions and other problem situations that may arise. Because of this, it is absolutely crucial that you find a great property manager who is both competent and trustworthy.
Get to know your local regulations and laws
Before you get your company up and running, do a little digging into your local rules and regulations. In many areas, you’ll need to obtain proper licensing and insurance before you can even put a “For Rent” sign in your yard. In addition, you’ll want to learn about any zoning laws that might apply to your business. For example, if one of your properties is too close to a school, you may not be able to rent it out.
Protect yourself with insurance
Beyond the licensing and zoning rules, you should also make sure your company is properly insured. This may sound like a lot of overhead, but it’s actually quite affordable. You’ll want to make sure that you have enough coverage to protect all aspects of your business. Make sure to have coverage for property damage, tenant injuries, and liability issues. Depending on the type of property you manage and the clientele you work with, you may also need workers’ compensation coverage.
Protecting your home and yourself from legal issues is a crucial first step to success. With these 3 simple tips, you can reduce the chance of a lawsuit and protect your assets from various risks. In short, make sure to hire quality professionals, know the rules, and protect yourself with insurance. With these tips in mind, you’ll be well on your way to a successful property management career. Now that you know the basics, it’s time to get started!
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