How to Keep Real Estate Premiums Affordable

 5 Tips to Keep Your Real Estate Insurance Premiums Affordable

You know how fast things can get expensive if you're in the real estate business. Repair costs, insurance premiums, and taxes can run your property bill through the roof, especially if you have several buildings or properties to keep up with. So here are five tips on keeping your real estate insurance premiums affordable so you won't go broke trying to maintain your buildings and properties.

1) Shop Around

Shopping for a better deal is one of the easiest ways to lower your insurance premiums. Reviewing rates with other carriers may not only help you save on your current premiums, but it will also help you avoid future rate increases. But first, find out if they're eligible for any discounts: Not all insurance companies offer the same values, so find out what deals your provider has available and how they might be able to lower your costs.

2) Look at Rates Based on Your Current Portfolio

Consider the value of your current portfolio. For example, if you have a lot of property, it might be worth paying more for insurance to keep your premiums manageable. On the other hand, if you have only one or two properties, it might be worth looking for cheaper insurance and seeing what companies are willing to work with you.

3) Work with Property Managers to Reduce Risk

Property managers can help you reduce insurance-related risks by taking care of things like scheduling maintenance, managing tenant relations, and keeping the property clean. If a risk does happen (like an apartment fire), your property manager will be on the scene immediately to take care of the situation. You'll also save on premiums because your property manager will have a better idea of what's going on with your building than anyone else—meaning they can tailor coverage to suit your needs.

4) Examine Expenses Across the Board

The first thing that you can do is examine the expenses across the board. This will help you understand where your money is going and where it could be cut. You might also want to speak with an agent specializing in real estate insurance to see what they recommend or if they have any suggestions for finding lower rates. You may even find that working with a property manager can reduce your insurance-related risks, ultimately leading to lower premiums. Lastly, shopping around for different policies and rates might also be beneficial.

5) Don't Opt Out of Coverage 

You may be tempted to opt out of coverage if your property is vacant, but doing so can lead to severe consequences. If you do not have insurance and someone becomes injured on your property, you could find yourself in legal trouble. If there is a fire or a natural disaster, the damage to your property could be worse than if you had bought insurance from the start.

Final Thoughts

It's essential to ensure you're adequately insured in case of an accident. However, it's also important not to fall prey to high premiums that can dent your budget. So when it comes time for renewal, don't be afraid to shop around and find the best rates available for your portfolio. You could also reduce risks by working with property managers on alarm systems and other devices that make it harder for people to break in.

If you are interested in receiving short-term funding or lending to flip a home, Michael Leafer is one of the top brokers in the area. Contact him today to see if you are eligible for some funding to help with your real estate goals!

Buy a House With or Without a Pool?

 

Should You Buy a House With a Pool or Build One?

Do you fancy having a private swimming pool? The freedom and privacy of having your pool drive many home buyers to have a pool in their homes. Should you buy a house with a pool or buy a house and build a pool later?
In this article, you will learn the pros and cons of buying a home with a pool and buying and building one later before you make the big decision.

Buying a House with a Pool

A pool has multiple advantages; it can improve physical health, complement your house, and boost your mental health.
 

The advantages of buying a house with a pool

•    There is less work involved. You get a house with a pool and you do not have to cater for the installation costs
•    Cool off in the heat. When you buy a home with a pool, you get to enjoy the advantages of having one right away instead of waiting for years to install one
•    Great way to exercise. If you buy a house with a pool, you can start your regular exercises immediately

The cons of buying a house with a pool

•    The increased cost of utilities and maintenance. When you buy a house with a pool, you inherit its maintenance and utility cost
•    You get an already designed pool which might not please you. The pool might be big or small or may have a design you will have to restructure, which takes a lot of money and resources

Buying a house and building a pool

A pool is an excellent amenity in your home. However, finding a home which meets your standards and with a pool can be so challenging. If you find a house which meets your search criteria and doesn't have a pool, you can go ahead and buy the house and later build your pool.

The Pros of Building your Pool

•    You get to design your pool to the design and size of your liking
•    You are prepared of the maintenance and utility cost

Cons of Building your Pool

•    You may never build that pool. Most people buy a house intending to build a pool sometime later, which may never happen
•    It is expensive to develop your pool as you will have to cater for all the expenses

Bottom Line

Whether you choose to buy a house with a pool or buy and build your pool, you should understand the pros and cons of each of them and settle on the one that suits you best.

Calculating Rental Property Costs

 How to Calculate the Cost of another Rental Property

The rise in interest rates has caused a lot of jitters in the real estate market. If you're a continuing or prospective investor, you may wonder if now is the time to put your investment plans on hold. But before you make any decisions, it's essential to take a closer look at all the costs associated with buying a property. By doing this, you'll be able to get a more balanced view of the current market and decide if investing now is right for you.

The Cost of the Property Itself

The first cost you need to consider is the property's price. This is usually the most considerable expense involved in buying a rental property and will have the biggest impact on your bottom line. To get an idea of how much you can expect to pay, start by looking at comparable properties in the area. Look at similar properties in size, number of bedrooms and bathrooms, and other amenities. Once you know what's available, you can start negotiating with sellers to get the best price possible.

The Cost of Upgrades and Improvements

Once you've purchased the property, there will likely be some upgrades and improvements that need to be made before it's ready to be rented out. These costs can range from small expenses like painting and minor repairs to larger projects like remodeling kitchens or bathrooms. Make sure to factor these costs into your budget, so you don't get surprised later. Also, keep in mind that some upgrades may add value to the property and help offset your initial investment.

The Cost of Financing

If you're taking out a loan to finance your investment property, additional costs will also be associated with that. In addition to interest charges, lenders typically require points, origination fees, appraisal fees, and other closing costs. Be sure to ask your lender for a detailed breakdown of all these charges so there are no surprises when it comes time to close the loan.

Bottom Line

There are a lot of different factors that go into calculating the cost of buying a rental property. By taking the time to understand all these costs, you'll be in a much better position to make an informed decision about whether or not investing in real estate is right for you. Contact Leaf Management for a free consultation. We can help you assess your current financial situation and develop a plan that works best for you – whether that's acquiring more properties or refinancing what you already own.