The need for housing grows alongside the population. There are some things to know if you are interested in buying an apartment complex. Before taking the plunge, you need to look at habitational insurance carriers, evaluate the rental potential of the location and the amount of maintenance required for that specific building.
Habitational insurance carriers are not all the same. When choosing a carrier, look for one that offers a variety of policies and customizes them to suit the needs of your apartment complex. Carriers like G.A. Mavon offer ordinance or law coverage, cyber liability, windstorm coverage, environmental impairment liability and commercial property with high TIV limits that go beyond standard coverage.
The location of the apartment complex can impact the type of tenants that live there and the amount earned from rent. Higher-end complexes may bring in more rent but often need additional features than those on the more affordable end.
When choosing an apartment complex to purchase, care should be taken. Some buildings may require up-front maintenance and repairs before tenants can move in. Others may have expensive items that need regular maintenance. Understand the various pieces of the complex such as activity areas that may need different attention.
Spending time to research these items like habitational insurance carriers before you purchase the apartment complex can save you headaches down the road. Owning a complex can be a great way to make recurring revenue.