A new landlord in California is in a great place to make a profit. California has the highest population in the nation and it’s easy to see why. From the sunny beaches, the picturesque mountain views, and temperate climate, California is paradise.
As our population continues to grow, availability and the cost of purchasing real estate has reached a point where renting is an attractive option for many people. A new landlord in California is primed to make money, but there are some important things you need to be aware of.
Here’s our list of 5 things a new landlord in California should know.
Landlord Insurance Is Essential
California is a wonderful place for landlords, but accidents, natural disasters, and damage caused by tenants does happen. Landlord insurance is vital for landlords to have in place as homeowner’s insurance does not cover damage to rental property.
Aside from damage, there could be an injury, legal necessities, repairs, or lost income that can affect you as the landlord. Landlord insurance can help with that as well. Not only do you need to protect your money-making assets, but you need to protect yourself!
As a landlord you need to be prepared for anything and it’s your responsibility to maintain the property to a certain standard.
California Has Standards
The state of California has laws in place that require landlords to maintain quality living standards for renters and will enforce laws around safety, building codes, and habitable space. Landlords need to be thorough and consistent regarding these codes and laws or risk legal consequences.
Natural Disasters — California Has Them
California is known for earthquakes, but we are also subject to other natural phenomena such as wildfires, mudslides, floods, and drought.
These conditions can affect California landlord insurance rates, and rates can vary greatly depending on the particular challenges unique to your area and property. It’s important that landlords are aware of the risks to their properties and are covered accordingly.
As a new landlord in California, you need to ask yourself — does my property pose any unique risks? Assess your area and property to see if your investment is prone to any natural disasters. Also check if any other features or structures will require coverage. You will want to ensure you safeguard your assets, and also inform your renters that they may want to get a policy to protect their belongings as well.
Landlord Insurance Does Not Cover The Tenant
Landlords insurance doesn’t cover the tenant and their belongings. This is something you may want to go over with potential tenants and let them know they can purchase renter’s insurance. This type of insurance policy can help protect the tenant’s property in the event it is damaged, stolen, or destroyed.
There Are Different Types Of Insurance Policies For Landlords
There are so many different types of insurance policies available, it can be difficult for a new landlord in California to know which one is best for their particular needs.
You may ask yourself: Do I need both homeowners insurance and landlord insurance? Excellent question! Read our previous blog on that very topic to find out more.
Landlordinsuranceca.com has been insuring California property owners and landlords for over 30 years. We are the local team that knows this business inside and out, and we are ready to help you safeguard your assets.
Contact us to learn more about crafting a custom policy that best suits your needs.