When you are hiring a Charleston property management company, you need to think about risk. Property management is a risky business and there are many ways that you as a client of a property management company should be protected.
Property Management Charleston, SC: Lease
One important way to reduce risk is through the lease. Normally, the lease is between the property management company and the tenant. The property management company is acting as the lessor or the landlord on your behalf.
Insurance: Errors & Omissions Coverage
As the property owner, you need to make sure the property management company you’re using has their insurances in place and does not self-insure. Many property management companies do self-insure, but that puts you at risk. There are two kinds of insurance that your property management company must have to protect you from risk. The first is Errors & Omissions, or E&O insurance. This policy is held by management companies to insure them in case they are found to be negligent. If your property manager doesn’t have this coverage and they are found to be negligent, typically the plaintiff will come after the property owner’s insurance. So, it’s important that your property management company has an E&O policy in place.
Insurance: General Liability Coverage
General liability insurance is also important. A property management company needs this to protect them and their clients if a tenant becomes harmed at the property while it’s being leased. We highly recommend that an owner hiring a Charleston property management company makes sure both insurances are in place by managers they may use.
Property management is a risky business; it’s why you hire professionals to lease and manage your property. It’s crucial that when you consider a property management company, you make sure those insurances are in place to reduce their risk and your own.
If you have any questions about Charleston property management, please don’t hesitate to contact us at Charleston Home Rentals.