Do you have the right protection for your Washington DC rental properties? Building long-term wealth through Rent Estate™ is one of the most stable ways to enjoy passive income—but that income is not entirely hazard-proof. Things can go wrong—and when they do, property owners need the right types of coverage to recover!

We've seen that the economy can struggle at any time for almost any reason. When you're building an investment portfolio, you can't afford to lose valuable income when things happen that are out of your control. A few months without rental income can be enough to put off your long-term financial goals indefinitely. 

Many successful investors understand the importance of Rent Default Insurance. When a resident can't (or won't) pay the rent, investors have insurance protection to cover short-term rental payments until they can replace that income with a new resident. 

Are you prepared if a renter defaults on the rent? Here's what you need to know about coverage provided by Renters Warehouse, Washington DC investors!

 

What Is Rent Default Insurance?

Even with your thorough renter screening process, things happen, and sometimes your residents can't (or don't) pay the rent. Without monthly rental payments, investors can't pay the bills associated with your property—or generate a profit. 

Whether it's due to an economic crisis—or you have a resident that simply stops paying the rent—property investors don't have to suffer through rental income loss when things don't go as planned. However, you need the right coverage from Renters Warehouse, Washington DC investors, to make sure a renter's lack of payment doesn't ruin your investment property business. 

  • This insurance protects property owners for the loss of rent resulting from a renter who defaults on rent payment obligations.
  • Depending on the options in your policy, your coverage provides investors with a guarantee on the lease performance.
  • You'll have peace of mind knowing that even if a renter stops paying rent, your insurance steps in to provide income so you can pay your Washington DC rental's mortgage, property taxes, or necessary maintenance costs.

What Does It Cover?

Rent Default Insurance covers many instances of renter payment default—but it won't cover every situation in which you can't generate income from your property. 

Your coverage includes protections for rent loss due to:

  • A resident that stops paying rent and is evicted from your property
  • A resident's marriage or relationship status changes and results in breaking the lease (divorce or break-up)
  • Your renter abandons your property with no way to recover rental payments from them 
  • Your resident loses a job and can't pay the rent
  • Your renter passes away mid-lease without an arrangement to continue rental payments
  • Your resident is deployed for military service and must break their lease.

In the Washington DC area, this last point is a big one and tends to be a concern for investors. With coverage, you'll never have to fear!

If you manage the right amount of cash reserves for your investment property business, one month of lost or delayed rental payments might not be a significant impact on your income. However, a widespread financial crisis can have a devastating effect on a resident's ability to pay the rent for more than one month. If you have multiple properties, multiple renters could deal with job or income loss at the same time—leaving you without rental income across a multi-property portfolio. 

Choosing the right insurance policy with Renters Warehouse, Washington DC investors, helps protect you from depleting your cash reserves in a crisis.

 

What Is Not Covered? 

With Rent Default Insurance, property owners have protection against many resident-related reasons for the loss of rental income. However, this type of coverage doesn't cover everything.

Most policies do not cover the following rent loss situations, including:  

  • Your renter stops paying rent because your property becomes uninhabitable due to non-resident related damages
  • Your resident breaks the lease because you failed to maintain a safe rental homethat complies with building codes
  • You've lost rental income due to a vacant property after a lease ends and you're unable to find your next renter
  • You and your renter mutually agree to terminate the lease before the end date.

Insurance protection is there to help property owners when the unexpected happens. However, it won't take effect if rental income loss is a result of property owner negligence, mutual lease termination, or the failure to act quickly and find a new resident after a lease ends. 

 

How Can Property Owners Qualify?

As with most types of insurance, coverage is available to Washington DC property owners who qualify. However, it's not a blanket policy that covers every property and every resident. With Rent Default Insurance, receiving coverage for your property during a lease term depends on the property owner as well as the resident occupying the property. 

It's valuable coverage for property owners, but make sure you can qualify! In most cases, coverage requires:

  • At least six months remaining on a new or existing residential lease agreement 
  • A long-term rental home used by your renter as a primary residence (short-term rentals are often excluded from coverage)
  • Residents must have a credit score of at least 580 and a monthly income 2.5 times the monthly rent amount
  • In the past three years, renters must not have a history of foreclosure, bankruptcy, evictions, judgments, or owing money to another property owner after the end of a lease.

We already mentioned the importance of screening your residents. It's a process that protects your property from bad residents, and it also helps property owners qualify for the insurance coverage your need to protect your business! Your screening process should already identify and place renters in your property that meet the criteria for you to qualify.

Renters Warehouse, Washington DC investors, leaves nothing to chance when it comes to helping property investors make more money and build lasting resident relationships! You never know when unexpected circumstances could damage your short-term income—and a short-term loss can quickly turn into a long-term financial impact without the right insurance protection in place.

 

Don't Get Caught Without Coverage!

Washington DC rental property owners with a commitment to choosing quality renters and building a successful real estate portfolio shouldn't risk their financial future without the right insurance coverage! While this type of insurance doesn't take the place of other kinds of rental property insurance, it is a critical part of the overall protection investors need to successfully make it through challenging times when residents can't pay the rent. 

The Rent Estate™ Advisors at Renters Warehouse can help you through the application and qualification process for Rent Default Insurance. We know you don't want to see your real estate investment income suffer when a recession strikes or a resident falls on difficult financial times—and we hate seeing it happen to investors who depend on monthly real estate income to support their financial goals. 

We also do the work to support your insurance coverage!

  • We help you find the best quality residents with our careful background screening process.
  • Our professional maintenance services make sure that every property meets local ordinances and keeps residents safe and happy.
  • With our team working for you, you'll never have to worry about not qualifying for the insurance coverage you need!

Renters Warehouse encourages investors to gather the best investment protections available to rental property owners—and we'll help you make it happen! Contact our professional Rent Estate™ Advisors to learn more and protect your investments.

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Learn why homeowners choose us for DC property management!

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I don’t know where to start, Marc Perez and Roberto were extremely professional. I was very impressed at how smooth things went. Any questions I had they were on top of it, making sure I understood the process. IM ALSO HAPPY WITH MY NEW HOME!!!

Renee Kasey

Dec 15, 2019
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Pretty much from start to finish, my experience with Edward Kim has been stellar. On every turn, Eddie patiently, quickly and efficiently walked through landing the tenant to what turned out to be a tad tedious process on the back end, yet successful in closing the deal. Thank you Eddie!

Jeanette Corley

Sep 26, 2019
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Glenn did a absolutely fantastic job assigning me with my rental very professional will refer him for future assistance with family and FRIENDS

Danielle Richardson

Jul 19, 2019
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Glenn at Renters Warehouse was amazing to work with and the experience was nothing short of outstanding! Very professional, tailored experience!

Iain Davison

Jul 10, 2019
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Loved working with Eddie Kim during our home rental process. Eddie is professional, knowledgeable and comes fully prepared for all interactions. 100% will use Eddie again.

Aleksia Ilic Forster

Jul 05, 2019
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Moved to DC area from Brooklyn and Ricardo made the process so easy. He listened to what I needed and understood what I was looking for. Great experience all around.

Kimberly Sanchez

Jul 22, 2019
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Marc Perez was extremely helpful in the entire lease-signing to move-in process, from start to finish! He went above and beyond to make the process easier for us. 100% would recommend him and Renters Warehouse!

Alix Welch

Jun 28, 2019
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I got transferred from S.C. to the area and was looking for a place to rent. I found Renters Warehouse and they were great. My agent was Glenn Jones and he did an outstanding job and made me feel very comfortable. It was an easy process and I love my new place.

Chris Swygert

Jun 24, 2019
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I had the pleasure of working with Ms. Tasia. She is very professional and knowledgeable. She got my family into the perfect rental within a week. She goes above and beyond to ensure that you are satisfied with your rental

Rhonda Moore

Jun 20, 2019
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Great job by Glenn, even while he helped his wife welcome their firstborn baby. Glenn found some wonderful tenants for my apartment.

Suzanne Tilton

Jun 13, 2019

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