High-value rental properties in Antioch have the potential to earn you comfortable rents and reliable long-term appreciation. Your asset is extremely valuable, and whether you plan to rent it out for the next 20 years or live in it yourself someday, preserving the condition and the value of that investment is one of your main priorities.
Your high-value rental properties are going to generate income, but without proper protection and careful resident selection, they also pose risks and liabilities.
We have some legal and financial strategies available to help minimize these risks and maximize your asset protection and your earnings. We’re exploring some of the key considerations to embrace as you select high-value properties and rent them out.
Protect Yourself with the Right Investment Property Structure
If you have not already done so, the first step in protecting your high-value investments is deciding how to structure your rental properties. The two most common ways to structure rental properties are through limited liability companies (LLCs) and trusts.
- An LLC provides legal protection to the owner and isolates the investment property from other properties owned by the same LLC. Creating an LLC for each property protects the assets in the event of lawsuits filed against one LLC.
- Trusts can also be used to minimize personal liability in the case of litigation or bankruptcy.
Talk to an Antioch property manager or a legal and financial expert like a CPA or an attorney. The way you structure your investments will depend on your own goals, your unique financial situation, and the size and value of your portfolio.
Set Up Adequate Insurance Coverage
Insurance coverage is another important factor in protecting your high-value rental property. Any investment property needs a comprehensive insurance policy, and you want to make sure the policy you have in place covers property damage, liability, and loss-of-income. Consider an umbrella insurance policy covering multiple properties. Your umbrella policy will offer additional coverage and not come with a ton of extra costs.
Screening Antioch Residents
Your high-value investment property almost certainly comes with higher rents. It’s absolutely essential that you’re placing residents who can meet the financial obligations of those rental payments and be trusted to take good care of your property.
A thorough verification process is critical when selecting residents. Conduct intensive background checks and income verification. Look at credit and measure the debt your potential resident holds against their income and financial obligations. Can they easily pay your rent every month?
Always require that residents carry their own insurance. You don’t want to be responsible for the repair and replacement costs of their own belongings, which are likely valuable as well.
Look for Renovation and Upgrade Opportunities
A high-value home isn’t deteriorating or run down. It has attractive landscaping, exceptional curb appeal, and all of the modern conveniences and upgrades that your potential residents are sure to expect. Replace any carpet with hardwood or tile floors. Make sure the granite counters and stainless appliances are clean, matching, and functional. Upgrade the lighting and update the fixtures.
The residents you attract to a high-end rental home are going to have high expectations. Make sure your property meets them.
If you are renting out a high-value rental property, make sure you’re hiring an Antioch property management company with experience leasing, managing, and maintaining homes of that quality.
Protecting your high-value rental property requires a combination of legal and financial strategies that includes insurance, excellent screening, and ongoing updates and investments.
You should feel confident in managing and renting out a high-value asset that will clearly be in demand on the Antioch rental market. If you’d like some help, we’re happy to provide it. Please contact us at PURE Property Management.
