What You Need To Know About Home Insurance But Don't
b"With Terry Story, 26-year veteran Real Estate Agent with Coldwell Banker in Boca Raton, FL
Tackling a couple of topics from her real estate survival guide, Terry talks with Steve about what a landlord can do when a tenant refuses to open the property for a visit from a real estate agent and prospective buyer, and what you need to know about home insurance before you buy a property.
Uncooperative Tenants
On the first issue, Terry draws on the experience of real estate attorney Gary Singer, who was asked what the landlord's rights are when it comes to a tenant who resists showing the property to the landlord who brings along an agent or would-be buyer. The answer is that legally speaking while tenants are expected to cooperate with the landlord on allowing access to the property, in practice, it is hard to define or enforce, and with most leases, there's very little that can be done. With \\u201creasonable notice\\u201d landlords ought to have access to make agreed upon repairs, which would allow contractors, lenders, and potential new tenants or buyers to see the property. Defining \\u201creasonable notice,\\u201d it turns out, is difficult, at best, and, in reality, these repair visits can be deferred indefinitely by an uncooperative tenant. In theory, it would help if the landlord had this conversation well in advance of the date they want to schedule a visit, but that too offers no guarantee of compliance. Simply opening up the house while the tenant is away and showing or inspecting it can lead to accusations of harassment or missing or broken personal property, so that's not a workable option. Landlords can access the property during an extreme emergency like a house fire, but that's clearly not ever a desirable scenario.
Limited Legal Options = Need for Persuasion
Since there is so much gray area in terms of legal recourses to show the property, and options are limited even when it is going to be sold and there's nothing the tenant can do about that fact, it may make sense to try to persuade tenants to allow access with financial or other incentives. Terry suggests that landlords put themselves in their tenant\\u2019s shoes, and imagine how they might feel about making things easy for an owner who's kicking them out. Offering a reasonable discount on the remaining months in the tenant's lease can go a long way towards gaining their cooperation. Another option would be to offer the tenant the option to buy the property, even at some discount to the market value. As an act of goodwill, this can make a difference.
House Insurance Quote
The second topic from the real estate survival guide is home insurance, and, in particular, getting a quote or estimate of its cost before buying a home. After the mortgage and property taxes, home insurance is the third largest expense for homeowners. It's vital that you not fly blind on this component of owning property. Without a quote, or at least an estimate of its cost\\u2014a better one than your lender can provide\\u2014it's impossible to figure out your monthly insurance expenses. It's a good idea to contact an insurance agent before you make that bold offer on a home.
There are many variables that come into play as far as the price of insurance, and one of the most important is location. This can be expressed as proximity to fire hydrants and fire stations or, more seriously, flood zones. In fact, flood insurance is required for properties in designated flood zones, and if you're in one, it can be the most expensive factor. Another aspect to the insurance equation with broad consequences is the age of the property. Roofs, in particular, need to be replaced every 20 years or so, and insurers won't even write a policy for a roof with less than 3 years of life left. If that's the case with the home you want to buy, be prepared to pay for a new roof. There are,"