Why Property Investors Should Require Renters Insurance [With Downloadable PDF for Tenants]

Why Property Investors Should Require Renters Insurance [With Downloadable PDF for Tenants]

According to Forbes, many tenants don’t think that they need renters insurance or may be completely unaware of what it is. It is possible that tenants do not understand the collective value of their possessions. Equally, they could assume that the protection of their possessions is under the responsibility of the investor/landlord, or may not be aware of what renters insurance is. Regardless, it is important that property investors make their tenants aware of renters insurance or even require it before the signing of a lease.

Here, we breakdown why property investors should encourage and educate their tenants on renters insurance, as well as providing an easy, downloadable guide that can be given to tenants.

What is covered by renters insurance?

By having renters insurance, tenants can be protected against the following:

  1. Personal Property – In the event that any of the tenants personal property is lost or stolen (such as clothing furniture and electronics), they will be covered by their renters insurance.
  2. Personal Liability – Should your property or anyone else’s be damaged (such as broken windows or items inside the property), the tenant will be covered once the deductible amount is met.
  3. Additional Living Expenses – If the property is deemed inhabitable due to damage caused by a natural disaster, the tenant will be covered against the cost of finding and living in alternative accommodation and travel costs associated with the move.

By being protected against such instances, tenants can stay in a stable financial position which will put investors and property owners at ease.

How are investors and property owners protected?

The First Line of Defense for Landlords

According to East Insurance Group, if your tenant or renter damages your unit, your landlord insurance may cover for these, depending on the kind of policy that you have. Generally, there are three kinds of tenant damage. Normal wear and tear, intentional, and accidental damage.

Accidental damage is sometimes shouldered by landlord insurance. When filing for an accidental damage claim, you still need to meet your deductible. But, if your tenants have an existing renters insurance policy, you might be reimbursed under their liability insurance coverage. This could cover property damage from tenants.

Intentional damage, also known as malicious damage, this is sometimes shouldered by landlord insurance. This may get confusing since vandalism is shouldered in many insurance policies. Vandalism is one of the most common intentional damage carried out by tenants, but several insurance companies treat it differently. However, this doesn’t mean that you don’t have any resource. You can confiscate their security deposit or file a lawsuit.

Wear and tear is not covered by landlord insurance or homeowner insurance. Wear and tear include the likes of stained carpets and broken fixtures. Your best resort is to get the tenants security deposit.

Injury and Medical Expenses 

According to Policygenius, a renters insurance policy will also cover costs you may be legally responsible for paying if someone is injured in your property. If someone slips, falls and is hurt on the premises, your policy’s personal liability and medical coverage will cover the cost of potential medical bills.

If that person decides to sue you for their injuries, your liability coverage will pay for some legal expenses that you accrue from the lawsuit.

A renters policy can protect property damage to others that you’re deemed liable for. If a broken pipe in your apartment flooded your neighbor’s residence below, your insurance policy should cover damages to their property, too. 

Reduces Conflict

By ensuring that their tenant and their possessions are protected, the property owner can breathe easy knowing that such responsibilities will not fall on their lap. This transparency and understanding between both parties can ensure a healthy relationship and a successful lease.

The Bottomline

In considering the financial magnitude of investing in real estate, property investors must take every possible action to protect that investment. By doing everything they can to ensure only ideal tenants are staying in their properties, it only makes sense to take an additional step and amplify the importance of their tenants having renters insurance.

The laws surrounding property management and renting can often be complex. As a result, it would be beneficial to give tenants a simplified breakdown of what renters insurance is and why they need it. Here, we have create a simple guide for tenants that explains what renters insurance is, what is covered, and why they need it. You can download that PDF here!

Changes to the Louisville Real Estate Market in the Age of Coronavirus (COVID-19)

Changes to the Louisville Real Estate Market in the Age of Coronavirus (COVID-19)

As the COVID-19 pandemic continues, it is safe to say that there has been nothing in our lifetimes that has consistently occupied our minds, lives and endeavors to this extent. On that basis, we reflect that there will be lasting changes beyond the end of the pandemic to almost all industries that will range from incremental to substantial.

There will be certain changes to real estate markets across the United States and beyond. As a result, many realtors and real estate investors will be considering their next moves and how they can pivot their operations to adapt to such an uncertain market climate. With many in the industry having very traditional methods to success, it is vital to understand local and national market changes and adapt accordingly to stay present, relevant and proactive. 

Louisville Real Estate Market Statistics

As shown in the past, the Louisville real estate market is notoriously resilient during times of financial unrest. During the financial crisis of 2018 the average drop in home values across the United States was 12.4%, but Louisville came in at just 6.8% (CNN). 

A similar trend is emerging during our current economic decline. According to the Greater Louisville Association of Realtors, in March of 2020 there were 1,355 single-family residential sales transactions. This number is down only 2% from March 2019. However, a sharper decline of up to 17% is expected when sales volume is reported for April 2020. This is measured by the reduction in accepted purchase contracts received in March, since a portion of those transactions will likely close in April.

Interestingly, the median sale price has seen a year-over-year increase of 4% to $231,999. Click here for full report.



COVID-19 Complications on the Real Estate Market

COVID-19 has introduced a competitive market in which qualified buyers are looking to purchase while inventory remains low. These buyers are pre-approved by their lender and have had little-to-no recent change to their financial situation, with many starting the process pre-coronavirus. We have several guests staying in our corporate rental properties because their primary residence sold yet they have not found a new house because of the limited inventory and competitive market. 

Owner-occupied properties have added complications because scheduling showings can be more challenging by helping prevent the spread of COVID-19. Vacant properties reduce these complications and can have a larger amount of showing traffic. Rest assured, good Realtors are working hard to protect the physical health of all parties on both sides of the transaction.

Another noticeable change to the real estate sales market is that no open houses are being scheduled as a precautionary measure to limit the spread of COVID-19. There are many opponents of the Sunday 2-hour open house that argue this activity adds little-to-no benefit to the transaction. I concur with this assessment and offer that a thorough video tour or 3D Matterport Tour is equally as helpful.  

Have you considered the fact that an open house could actually be hurting your home sale? Read the report here.


COVID-19 Impact on Louisville Short Term Rentals

In a time and a market that has demanded creativity and flexibility, we have been able to pivot and short-term rentals into corporate rentals. Progressively, more and more of our properties are being filled through 30+ day and month-to-month agreements to meet the needs of the local housing market and to fill the calendars of our clients. 

In considering the longevity of this strategy, it can be assumed that the corporate rental consumer does not have a budget to sustain this type of investment. It is merely a band-aid solution until the short-term rental market returns.

Upon reflection, short-term rentals continue to be the most volatile of all real estate endeavors. They are not, nor will they ever be, for the faint hearted. Purchasing a short term rental property is the equivalent of getting a new puppy. They require more work than you expect, but they are also very rewarding. If you are willing to put in the work and have the right mindset you will enjoy being a host and will reap the associate rewards. 

You can track the impact of COVID-19 on the Louisville short-term rental market with data from Transparent. Click here to view.

For further information on COVID-19 Real Estate Legislation and relief, click here

Boone Cabin – Things to Know

Boone Cabin – Things to Know

Boone Cabin – Things to Know

Thermostat – The house has central forced heating and air, and is controlled by the thermostat in the main hallway. Please use the up and down arrows to adjust the temperature.


Fireplaces – There are two gas-burning fireplaces in the house, one in the living room and one in the kitchen. Both are operated in the same manner. Here are the instructions for operation:

Instructions for use…

  • Locate the black knob in the lower right of the log base, and the pilot starter button in the lower left of the log base.
  • Make sure there is no gas odor.
  • Turn the knob to pilot and press down. This will allow gas to flow.
  • Press the pilot starter button. You should see a small blue flame between the logs.
  • Slowly turn the knob and turn to the desired flame size.
  • Please turn flame off entirely before going to bed or leaving the house. The knob should be in the OFF position. Please make sure it is not set to PILOT. Many people make this mistake and it will continue to release gas into the house.

– Anyone under the age of 18 should be supervised when lighting the fire
– Please do not burn anything in the fireplace. It is not externally venting and the house will fill with smoke.
– Please do not leave the house or go to bed with the fire burning
– Please do not rearrange the logs. They are not meant to be in direct contact with the fire and will emit a noxious odor that can cause headaches. 
– If you smell gas or any odors, please turn off the fireplace and contact us.
– We recommend keeping the mesh curtains closed while the fireplace is in operation to minimize accidents or burns. Please be careful when opening to turn off the fireplace, they will be hot.


Water – The cabin is equipped with an electronic water shutoff system. It is located in the room off the kitchen, next to the circuit breaker and looks like a thermostat. If it beeps, please press “home”. If the water is shut off to the house, please press “home” and see if the water begins working again.

Hot Water – The water to the cabin is supplied by a well. The well bring water up from the water table at 40 degrees. Because of this, it can take a little extra time for the hot water to heat. We recommend spacing showers and maybe taking a little less time than usual if you have a larger group.


TV and WIFI – We subscribe to TV and internet service through Charter Cable. There is one TV in the house, located in the main living room. We have a DVD player with 30 popular DVD titles that appeal to most age groups and genres.

Wifi Network – MyCharterWifi90-2G
WIFI Password – grandriver452

If you have an issue with the TV or Internet please troubleshoot by turning off all equipment and doing a hard reset on the TV box and.or internet modem. 


Garbage – Garbage day is Tuesday. The collection company comes to the deck to retrieve the cans…don’t be alarmed. Please make sure everything is put in trash bags because they carry individual bags to the truck. We are charged when loose garbage is left in the can.


Coffee MakerThe coffee maker is for use with ground coffee beans. We do our best to provide coffee for each guest. We do not have means of grinding coffee beans on site.

There is a 1/8-cup measuring scoop in the coffee. That is the equivalent of 2 Tablespoons. Most coffee manufacturers recommend adding 1 heaping Tablespoon of ground coffee for every 6 ounces of water. The “cups” outlines on the coffee pot are in 6 oz. increments.

Example: If you add 4 “cups” of water, you should add 4 heaping tablespoons of ground coffee, or 2 scoops from the 1/8-cup coffee scoop provided.

Please let us know if you use the last of the coffee so we can provide for the next guest.


Washer and Dryer – There is a stackable washer and dryer at the end of the main hallway, located in a closet under the stairs. You are free to use for your personal belongings. Please let us know if something in the house is dirty and needs to be cleaned. Our cleaning service launders all linens off site, so no linen laundry is necessary unless for your personal use.


Hair dryers – Hair dryers are provided in each each full bathroom (total of 2). They are located under the vanity.


Kitchen appliances provided:
Coffee Maker (ground coffee)
Waffle Maker
George Forman Grill
Four slice Toaster

Electric range with oven
Full-size side-by-side refrigerator with icemaker


Inclement Weather – If snow or ice is in the forecast, we recommend parking at the base of the driveway facing out, to make it easier to exit. The street is plowed when accumulation reaches 2-3 inches. Our driveway has a company that services it as well.

Ice melt and a shovel are provided in the outside cabinet located between the kitchen doors. Please let us know if you use the last of it so we can replace.

Please let us know if anything should be included that is not mentioned here. 

Your source for short term rental management and consulting.