How To Turn Renters Insurance Into a Profit Center
As a Property Manager you may see the logical benefit in encouraging residents to carry risk insurance. It reduces the chance of your having to tap into your own insurance deductible in the event of a residents negligence. But you may ask yourself how can this yield profits for me? How much does it really affect my bottom dollar?
There are several ways that requiring renters insurance can increase your revenue, reduce your expenses, and protect you from risk. Consider that nearly 75% of residents have no renters or liability insurance, and property managers often end up paying the price. Losses can be in the form of fire, smoke, explosion, and in some instances, water. If one of your residents caused a fire, they could damage not only their rental units, but other units as well. This could cost you an immeasurable amount of loss if your resident does not have renters insurance coverage.
As an incentive for obtaining renters insurance, property managers can offer monthly lease or rental options at a discounted rate. This will encourage more residents to lease or rent in your property thus increasing revenue. Some insurance companies will offer a transaction fee for every resident that enrolls in their renters insurance program or a revenue paid per door. Simply by presenting their renters insurance program to your residents, you can create an additional source of revenue.
Accessibility