Study reveals landlords' opinion on multifamily tenant liability.
Is it landlords’ responsibility to make sure all tenants
purchase renter’s insurance? It should be, according to a LeasingDesk Insurance
Services study. Multifamily landlords who insist their tenants purchase
renter’s insurance save significantly on costs related to tenant damages, the
study revealed. “The multifamily industry is the only industry that does not
require renters to accept liability for damages they may cause. By not
protecting themselves against resident-caused damages, owners are exposing
themselves to unnecessary risk,” says Dirk Wakeham, president and chief
executive officer of LeasingDesk Insurance in Irvine, Calif. Renter’s insurance
accounts for a savings of nearly 80 percent in repairing renter-caused damage,
or $4.29 per unit, according to the study. Other findings include:
- More than half (55.32 percent) of the multifamily property
management companies, representing 3,532 multifamily properties nationwide,
track tenant-caused damages.
- Forty-five percent report that they offer no insurance to
their tenants, while 30 percent offer renter’s insurance at all of their
properties, and 25 percent offer renter’s insurance at some of their properties.
- Twenty-five percent of respondents require tenants to
purchase renter’s insurance at all of their properties, and close to 15 percent
require it at some of their properties.
- Of those landlords who offer tenant insurance, nearly half
“absolutely” would recommend a similar system to other landlords.
- Currently, 67 percent of landlords who do not offer renter’s
insurance are interested in doing so.