If your plans to rent out your Michigan home were scuppered, you are not alone. The world changed drastically, and travel between states became impractical or even illegal at times. The chances of finding a tenant went down, and even if you tried to lower your price, you may have struggled to find someone.
The states with the busiest cities, like New York, have inevitably seen rental prices hit quite badly, considering the greater economic impact COVID-19 had on residents already pressed for cash. In Michigan, on the other hand, you are likely to get tenants at the same rent as they would have paid pre-pandemic.
In order to take advantage of the opportunities for rent now presenting themselves, here is what you need to do.
Designate a Workspace
Whether or not people are back at the office, we have all learned to appreciate the importance of a home workspace. Those individuals who weren’t lucky enough to have a quiet place away from their living spaces to work had a difficult time getting anything done or separating work from play.
If your rental doesn’t have any extra space for work available, there’s not much you can do. But if you have an extra room or even a small space in a quiet corner, mention to potential tenants that they can use it as a designated workspace.
Even people who were not working had the need for separated space during lockdowns, so you can even bring it up as a possible hobby space.
Include Michigan Renters Insurance in the Lease
Michigan has a number of natural hazards that can cause unexpected damage or loss of property. Because of the occasional flooding or even tornadoes, homes and possessions are never totally safe (as is the case anywhere in the world). There is also always the possibility of accident or theft.
I have no doubt you already have insurance on the property you are renting out. However, you can also require renters insurance in the lease. Renters insurance Michigan covers the possessions of your tenant and can include personal liability. This has a number of potential benefits for you as the property owner.
For one thing, an unanticipated disaster will not leave them struggling to make ends meet. Items they need for day-to-day use or for work will be replaceable without having to compromise on rent. If they cause accidental harm to someone else or another person’s property, their renter’s insurance may pay, so that they don’t get caught paying back the money they don’t have.
Furthermore, with personal liability insurance, damages they cause to your property may be paid for. This would cover the deductibles charged by your insurance, as well as preventing your claims record from taking a hit.
Renters insurance is very affordable, and shouldn’t impact the amount you are able to charge for rent.
Keep Capital on Hand
Ideally, you should not be relying on your rental income from your Michigan property to pay the bills. The reality is that there is not enough certainty at the moment for that to be advisable. So, if you are considering dipping into your savings to renovate the place (or for any personal purpose), think again.
There are a number of reasons to always have capital on hand as a property owner. In usual times, there will always be maintenance and repairs that you are responsible for. In crazy times like these, there is too high a possibility that your tenant will be unable to pay rent or have to leave.
Bottom line
If you have used up much of your capital, you won’t be able to see these scenarios through. You will end up with an empty property that you are still struggling to pay off.
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