3 Lease Clauses Smart Landlords Use To Protect Themselves in Case of Fire
Make Sure You Have These Three Covered In Your Rental Agreement
If a fire damages your rental property, do you and your tenant(s) understand who pays for what? It’s best to address any questionable situations in advance, and the easiest way to do that is by including clear provisions in the lease. Make sure you have these three issues covered in your rental agreement so that you’re protected if an apartment fire breaks out.
1. Require Renters Insurance
Renters insurance covers fire damage to the tenant(s)’s personal property, such as furniture, clothing, electronics, and other belongings. Most renters insurance policies also pay for tenants to stay elsewhere, until fire restoration is complete. If there’s a fire and your tenants don’t have renters insurance, they’ll be completely out of pocket for belongings and temporary housing. Avoid this situation by including a lease provision that requires tenants to maintain valid renters insurance.
2. Outline Some Temporary Lodging Rules
Renters insurance should cover temporary housing in Peoria, AZ, for your tenants while the fire damage is being repaired. However, temporary lodging is the most frequent source of misunderstandings after an apartment fire. Save yourself the headache and clearly outline your policy ahead of time, in the lease. Note: if the tenant (or his/her insurance) is responsible for temporary housing, make sure that you pro-rate or refund rent paid for any time that the apartment is uninhabitable.
3. Set Time Limits for Repairs
Your lease should contain a provision for situations where the fire damage is so severe that the property will remain unlivable for an extended or indefinite period. In that situation, you and the tenant should consider the lease terminated, and you should refund any deposits as appropriate based upon the other terms of your lease.
You and your tenant will both have plenty of things to worry about after an apartment fire. A well-drafted lease will ensure that a disagreement over rental terms won’t be one of them.