Re: Insurance & HOA

[Mercury1]

I am letting a rental home go into foreclosure, however, I still have tenants that have decided to stay in the home.

They do not pay rent any longer and they also understand that we are letting it go into foreclosure (Lease contract is expired).

We did not pay the property taxes for this year since we are letting the house go back (even though it still has not officially foreclosed).

My questions are:

a. Should I continue to pay for the HOA dues?

b. Since tenants are in the home (even though there is no contract and no rent is being paid) should I continue to pay for Home or Landlord insurance?

[StartingOver08]

This is just my opinion, as a landlord for 20 yrs and a real estate agent for 30 yrs, talk to the tenant to see if they want to pay the HOA dues. They can make the payment directly to the HOA if you prefer. After all, they are receiving the benefit of the dues and the dues payment is probably much less than comparable market rents for similar properties in the area.

As to the insurance, because they are in the property, I would keep insurance in place to protect you from future liability/damage. Even though the tenant may seem reasonable now, if something happens while they are in residence, they may come after you for damages. JMO.

[Mercury1]

Re: Type of insurance

For liability reasons, would you suggest Landlord insurance or regular home insurance?

[StartingOver08]

Landlord/Tenant insurance.

[Mercury1]

Llc

We have a LLC on this investment property. The insurance company needs the individuals name, but should we add the LLC name as additional insured for liability reasons?

If the tenants decide to go after us for some unknown reason, will it matter if the LLC is on the policy or not? Won't it still protect the individual if the LLC name is not on the policy?

The loan is signed owner occupied, so I do not want any added attention to the fact that it is rented out by adding the LLC to policy (for foreclosure reasons).