The renting market, both short and long-term, is booming in the province of Quebec. If you are considering purchasing a property that you plan to revitalize for the purpose of renting, or if you want to renovate a floor in your home to rent out to a tenant, you may be considering becoming a landlord. If that is the case, congratulations. Being a landlord is rewarding, but it has its own array of risks.
Landlord insurance may not be required to operate as a landlord manning one or more rental properties, but it can go a long way when it comes to providing financial protection against a range of common exposures. See our guide here for information on the many benefits of landlord insurance for rental properties – both short and long-term.
The Responsibilities of a Landlord
Landlords in Quebec must respect several obligations. The main responsibilities of landlords concern the condition of the unit, its maintenance, and repairs.
Carrying Out Specific Responsibilities
A landlord in Quebec may take on numerous specific responsibilities. If the home has a driveway or walk, the landlord may be responsible for lawn maintenance or snow removal. The landlord must also make all necessary repairs. The tenant can be held responsible for minor maintenance repairs. If the tenant requires to do repairs immediately because the repair is urgent or because the landlord has done nothing, they may be able to subtract the repair bill from their rent. This, however, depends on several conditions. Otherwise, the landlord may also be responsible for not changing the use of the dwelling, nor undergoing any major renovations to the unit without prior approval and notice first.
Ensuring Rental Unit Meets Health & Housing Standards
The landlord is responsible for ensuring that the rental unit is in good liveable condition and clean. To “deliver” the unit and have the tenant take possession, the landlord must do all the necessary prep work leading up to the delivery date, including making all accessories and services the tenant is entitled to available. If any repairs are needed, these should be done before the tenant moves in.
Maintaining Tenant’s Peaceful Enjoyment
The landlord is required to not disturb the tenant during their lease. Other tenants in the building that the landlord owns must also not disturb the tenant. If another tenant causes the new tenant any issues or damages, then the landlord may be held responsible. The landlord has no obligation if the inconvenience is initiated by someone outside the landlord’s control.
The landlord is obligated to give the tenant 24 hours notice before entering the unit. They may enter the unit earlier than this if consent has been given and the tenant is aware of when the landlord will be entering the unit, like if any repairs need to be done.
What is Landlord Insurance?
Now that we have addressed the many responsibilities of the landlord, it’s important to go over what landlord insurance is. In essence, landlord insurance is a form of property insurance designed to protect a rental unit or building. A landlord should have insurance to protect the physical structure of their unit and building, as well as their liability. Each policy differs in what it specifies, but most landlord protection plans will cover property owners from financial losses. This can include liability arising from ownership, contents that the landlord owns on the property, coverage for the structure, and loss of rental income.
Landlord insurance will not cover tenants’ belonging. Any contents in the unit not owned by you must be covered by a separate tenant insurance policy. Tenants are not required to carry tenant insurance, but a landlord can ask their tenant to carry insurance as a condition of their lease agreement.
What Does Landlord Insurance Cost for Rental Properties?
Landlord insurance costs vary tremendously, seeing as rental properties may scale from single units within a residential household to larger, commercial apartment complexes.
Other factors, such as postal code, value of property, coverage options, coverage limits, contents owned, and insurance history can play a role in how much landlord insurance for your rental property will end up costing. Having a custom policy from an MGA like Vago can help take some worries off your shoulders and help you focus on the needs of your tenants, and it may be the more affordable option.
Risk Management for Landlords
Being a landlord is rewarding, but it comes with a lot of risks. In addition to comprehensive landlord insurance for your rental properties, consider the following strategies to mitigate your risk exposure:
- Thoroughly vet all your tenants before approving a lease. Your tenants are your biggest liability exposure and can make or break your business.
- Hire inspectors and reputable contractors to bring your unit up-to-code before you deliver it to a tenant. This will avoid the issue of any missed repair jobs and may improve your relationship with your tenant.
- Consider asking prospect tenants to produce a credit score. A tenant score with a good or very good credit score is likely to be a tenant who pays rent on time.
- Make sure to follow regulations by installing smoke detectors and carbon monoxide detectors.
- Ask your tenants to purchase their own tenant insurance. This can help you to avoid potential liabilities, plus it may allow you to make your unit pet-friendly – which can increase the pool of prospect tenants you can choose from.
Limiting liability can be done in any number of ways. Risk mitigation shouldn’t replace insurance, but the same goes for vice versa. Risk mitigation and understanding your potential risks, while also acquiring sufficient insurance coverage, is critical to your success as a landlord.
Vago, an innovative MGA that operates in the Montreal area and within the province of Quebec, offers efficient and fast services to support businesses in its service areas. We offer special risk solutions, including comprehensive opportunities for landlords looking to focus on growing their business.
