Renting a single family home, couple of questions.

Rehabbing, Fix and Flip, Rental Properties
1

I am going to be renting my first property in the next few months. The property is a single family home in a nice suburb of the Pittsburgh area. I expect to get about $1200-$1300 per month in rent. I currently live on the other side of the country, making this a little tougher, but I plan on hiring a reputable property management company to take care of everything for me… at least initially.

I have a question about utilities and the insurance that the gas/water companies offer for underground problems. I have always purchased this insurance from the utility, I find it to be reasonable overhead in the event that a cold snap ruptures a pipe, or a gas line springs a leak. Given the house was built in the early 60’s this is a real possibility.

I plan on making the renters put all utilities in their name, so I’m not sure I have control over them carrying this insurance. I plan on stating in the lease that the tenant must carry renters insurance, so should I also add verbiage in the lease stating they need to carry insurance from the utility as well?

-J

2

Never heard of such a thing. Of course you can put anything in the lease you want, but why would you have insurance for a repair that costs a few hundred bucks and almost never happens?

3

As the owner of the property, aren’t you able to purchase the utility insurance even if the utility service is in your tenant’s name?

4

I would not purchase this insurance or require tenants to.

Pipes in the ground almost never freeze. The ground is a fantastic insulator.
Utilities already have to cover for the lines up to the meter.
So you’re paying for insurance from the meter to the house.

Most broken pipes occur in walls and attics. Take your money and make sure those are insulated properly and it’s a much better use of your dollar.