Your rental property in Issaquah provides a lot of potential. There’s potential for earning consistent rental income and there’s also potential that your investment will increase in value over time, earning you a lot of equity and appreciation as your tenants pay down your mortgage and contribute to other expenses.
There’s potential for liability, too. Every investment comes with risk, and when you’re investing in rental properties, that risk can be especially dangerous. Not only do you have to worry about the property itself – you also have to consider your tenants and the liability that comes with having other people live in your property.
At Real Estate Gladiators, we’re very good at beating back risk and defending our owners against liability. Here are three ways you can limit your liabilities when it comes to renting out your Issaquah property.
1. Double-Check Your Issaquah Landlord Insurance Policy
Protecting yourself starts with insurance. Make sure your policy is up to date, reflects the accurate value of your property, and includes all the coverage you’ll need to manage risk.
A good insurance policy will provide enough liability protection to cover you if your tenant or a tenant’s guest gets injured at your property and files a lawsuit. Landlord insurance isn’t only about covering the structure of the home and your ability to repair or rebuild after a covered loss. It’s also about protecting you from claims that others may make against you.
2. Conduct Thorough Inspections for Health and Safety Issues
Frequent inspections will limit your liability by ensuring that property is safe, habitable, and in good condition. Your move-in and move-out inspections are critical in protecting yourself against any potential risks. Look for plumbing and electrical issues. Check the roof and make sure the doors and windows lock. Smoke detectors and carbon monoxide detectors need to work, and you’ll want to make sure the dryer vent is clear of dust and lint. Look for loose handrails, uneven steps, and any issues outside that may cause harm.
3. Educate Yourself on State, Local, and Federal Laws
You’re risking a lot if you don’t comply with all the laws and requirements that pertain to rental housing in Washington State. These laws are getting more complex, and if you aren’t up to date, there’s a chance you might violate a fair housing law or a security deposit law without even realizing it. This sets you up for some legal penalties that can be expensive and demoralizing.
Protect yourself by understanding the laws and how you’re expected to comply with them.
Fair housing laws are in place to protect tenants against discrimination. These laws also apply to service animals and companion animals. While there isn’t any statewide rent control, there are notice periods you’re required to provide before you do raise rent. If you want to evict a tenant, you’ll need cause.
These laws are easy to break – even unintentionally. However, the legal mistakes you can make are often expensive.
Perhaps the best way to manage all three of these things is by working with an Issaquah property management company. When you partner with professionals, you don’t have to worry about liability because your management team is protecting you and your investments. We can tell you more about how we successfully manage rental homes like yours. Please contact us at Real Estate Gladiators.
