For many in California, owning real estate in Los Angeles can be a lucrative investment. With a lot of opportunities in the city, both residential and commercial properties are in high demand. So, whether you choose to rent out your property, become an Airbnb host, or get into house flipping, there’s a lot of opportunity to profit from your investments.
However, unlike other forms of investments, real estate properties need certain safeguards to prevent it from becoming a liability on your finances. If your property gets destroyed by a natural calamity or a tenant gets injured on your property, you may be liable to pay fines and repairs that outweigh your income.
Here are a few ways to prevent that and protect your investment.
Insurance for your property may be a requirement when you first acquire your property, but if your property isn’t insured, you should consider looking into the different available insurance coverages that protect you from liabilities. A few examples include:
- Personal Liability Insurance – Usually a component under homeowners’ insurance, but can also be sold on its own. This is in case an accident that happens on your property that results in the bodily injury of a guest.
- Homeowners Insurance – Covers the losses and damages to the property, including the furnishing and other assets within the property. Also includes liability coverage when an accident happens on the property.
- Renters Insurance – You may require your tenants to have proof of renters insurance. In California, you may be responsible for covering a tenant’s relocation costs in case of a natural disaster. It also protects their own possessions, reducing the risk of a lawsuit.
We recommend shopping around for insurance coverage that adequately covers your property and assets. This may cost significantly more depending on the value of your assets, but in case of an accident or natural disaster, having adequate insurance can help you avoid paying out of pocket.
Hire A Property Manager To Handle Your Rental Properties
Without a property manager or a property management company, you assume the roles and responsibilities of a landlord. Aside from what’s stated on your rental contract, California laws cover what a landlord can and cannot do. For instance, you’re responsible for the major repairs of the property. And if your tenant is being unruly, you have to undergo the formal eviction process as it’s not legal to lock them out of your property.
If you don’t feel capable of handling this responsibility on your own, you have the option of hiring a property manager or a property management company. While the properties are in your name, property managers can manage the roles and responsibilities of a landlord. This can both make your investment more passive and easier, while handling the day-to-day tasks to those with more experience.
Hire A Real Estate Lawyer
Having a real estate lawyer for your Los Angeles properties can protect you from all the liabilities and legal ramifications you could be responsible for as a property owner. Whether you’re a landlord with multiple rental properties, filing for bankruptcy and want to protect some properties, or want to protect your real estate properties for your family’s future, real estate lawyers understand the different legal aspects of owning property.
Rather than looking for a real estate lawyer when an emergency arises, being prepared with one to help manage your properties can prevent any emergencies from happening. After all, when all your properties are in line and managed properly, your lawyer can avoid a lawsuit or liability from blooming from your properties.
Get in touch with The Law Office of R. Grace Rodriguez today and see which real estate services you can benefit from.