hole Landlord tip:  Avoid emergency differed maintenance costs to repair water lines

Louisville Landlords, this is not the usual tenant training tip that I usually offer.  But it is a subject that could save you thousands of dollars in repair of your Louisville rental property.

Inside every bill I receive from the water company they always put that insert for water line insurance.  At first I thought it was just another revenue source or even a scam they were offering.  I started to look at it a little closer and have decided that my mind has changed and here is why.

First, I was ignorant in thinking that my home owner insurance policy would cover any water damage in my home. Well that’s right they will cover “most” water damage inside my home. Let me say that again, inside my home, not outside.

fig1That pipe that runs from the curb valve/water meter to the connection inside my house is also my responsibility should it fail. Or when it fails, because I have a tree right between the house and that curb valve with roots that will eventually want to see inside of the water service line.

That service line is buried underground on the property and will fail without any warning. One day your yard will look like a muddy swamp and then it’s too late.  Tenants screaming to get it fixed yesterday.

The cost of pumps to pump out the water, back hoe to dig and locate the failure, and we haven’t gotten to the master plumber that is needed to do the actual repair of the line can get into the thousands of dollars.  That cuts into the land lord’s bottom line.

water-mainSo the next time you see that insert wanting $5.50 a month for a protection plan; consider what you get for $66 a year.

  • $7,000 annual coverage to include multiple service calls.
  • A 24-hour hotline for emergency repairs (what’s that worth to the landlord)
  • One year warranty on the covered repairs

Here in Louisville landlords can take advantage of these services by filling out the attachment in every Louisville water company bill.  It’s just a matter of time if you are a pro-landlord before you are exposed to this type of emergency.

A $66 a year insurance policy is a must to mitigate a Profit and Loss sheet killer like this.  You could even pass that cost to your tenant by raising the rent $5.50 a month.  They may even appreciate and welcome that increase if you told them what is was covering.

Tired of these and other types of responsibilities? Want to sell that house and be free from the three T’s?Complete this short form and let me help

Tagged with:

Filed under: Investor Exit StrategiesLandlords and Tenants

Like this post? Subscribe to my RSS feed and get loads more!