For a lot of people, Renters Insurance can be an afterthought.  Tenants tend to think it’s an unnecessary expense and landlords tend to think it’s the Tenants’ responsibility and shouldn’t be a concern of theirs.  The fact of the matter is both parties need to be aware of the benefits that come from a solid renters insurance policy.

The first and most obvious benefit is coverage of the tenants’ personal belongings.  Often people think they don’t have enough property to make paying for a policy worthwhile.  But if you take a look at what can be covered by a renters insurance policy, you’ll notice that it can really add up.  Clothing, furniture, television, entertainment systems, computers, sporting equipment, and jewelry…these are just a few items that are covered under a Renters Insurance Policy.

What most people aren’t aware of is the benefit to the landlord.  Not only does renters insurance cover personal property, it can also help pay for damages caused by the tenant.  Some of the most common Renters Insurance claims are fires and floods.  Leaving a candle burning, knocking a fire sprinkler off when moving, or causing damage with cigarette burns are just a few ways that a perfectly normal landlord-tenant relationship can head South.  Renters Insurance can help cover all of these issues.  So while you may require a stiff security deposit, there is always a chance that something catastrophic can happen.  And when something does happen it’s important to make sure you and the tenant are covered!

Failing to do background or credit checks could mean a big mistake with your new tenant!

There’s an internal sensor we have that lets us size up a person’s character in one meeting.  While many of us trust our own judgement, it won’t always lead to a good outcome when it comes to leasing your home.

A nicely dressed, well-spoken person could be living beyond their means, or he could just be a great salesman (a.k.a con person). The lesson is simple. When entrusting one of your biggest financial assets to a stranger, the rule is this: screen all applicants properly.

As the Owner, you want to know whether an applicant has been evicted in the past; whether they have a history of criminal behavior that could jeopardize you, your neighbors or your property; and whether they earn enough (an industry standard for this last question is a monthly income at least three times the rent).

Here’s where Seattle Rental Group (SRG) can be particularly helpful. We have relationships with background-investigation firms that know the laws surrounding data searches. SRG uses these agencies to supplement a criminal and financial screening.

The credit score is very important; however, credit scores alone are not all-telling. It’s possible for people’s credit to be damaged (after a hospitalization, divorce or short sale/foreclosure for example) without their ever having missing a rent payment.  This is why being armed with the proper Agent and Agency is important for a combination of “internal voice” and screening to make the most educated decision possible when leasing out your home.