Are you thinking of renting your property? Becoming a landlord comes with responsibilities, whether it's your own home or an investment property. From legal agreements to liability protection and property insurance, there's much to consider before handing over the keys.
This guide will walk you through everything you need to know before renting out your property.
Before you dive into paperwork and protection, you need to be clear about what kind of rental arrangement you're setting up. Your responsibilities and risks can vary based on this.
This is the most common type. You rent your property for 11 months or more, often to families or working professionals. A full lease agreement is essential, and you're responsible for regular maintenance as a landlord.
Frequent turnover means more wear and tear. These are usually rented daily or weekly and require flexible agreements. Insurance cover must account for the higher risk of accidental damage.
This includes renting to multiple tenants in the same space. You'll need to clearly define the use of shared areas and outline rules to avoid disputes. It also increases liability, as more people are using the property regularly.
Once you identify your setup, you can set expectations legally.
A rental agreement is the foundation of your landlord-tenant relationship. It defines rights, responsibilities, and boundaries. Even a minor issue can become a costly dispute without a proper agreement. Below are the key elements to be included in a rental agreement for an unbiased agreement setup.
Include names, addresses, and valid ID numbers.
Define the start date and lease term (usually 11 months for residential lets).
Mention the monthly rent, payment mode, due date, and late fee policy.
Mention the deposit amount, what it covers, and when it will be refunded.
State which party is responsible for regular maintenance versus major repairs.
Include rules on pets, noise, guests, and use of common spaces.
Add a clause stating how much notice you'll provide before visiting the property.
Mention the notice period, final inspection, and refund timeline.
You can create digital rental agreements online; many platforms offer e-signatures and document storage. However, for extra protection, especially in high-value rentals, get the agreement notarised or registered.
Renting out your home doesn't mean you no longer need protection. You need more protection. While tenants are responsible for their belongings, your property's structure and core contents still fall under your responsibility as a landlord.
Here's how home insurance helps protect your property investment:
Storms, floods, earthquakes, or fires can cause major damage. Home insurance helps cover repair or rebuilding costs. This is especially important if your property is in a high-risk area or is unoccupied between tenants.
Vacant periods between tenants may increase the risk of break-ins. Some plans offer cover even when the property is not occupied for a few weeks. Check the terms before buying.
Your insurance can cover the repair costs if a pipe bursts or wiring causes an electrical short. This includes ceilings, walls, flooring, and built-in fixtures.
Some policies offer loss of rent cover if your property becomes uninhabitable due to insured damage (like fire or water damage). It helps you recover missed income during the repair period.
If you're taken to court by a tenant, home insurance with legal assistance can help with representation and court expenses.
Liability coverage in home insurance protects you financially if something goes wrong on your property that affects a third party, such as your tenant or their visitors. It's an important part of property insurance, especially when renting your home.
When renting a property, accuracy matters—especially when it comes to your home insurance. Misrepresenting a rental unit as a primary residence could lead to complications during claim processing.
As a landlord, the right coverage should go beyond structural protection. It should include safeguards against tenant-related risks and natural disasters, offering financial security and peace of mind.
That’s where insurers like Digit Insurance stand out. With zero paperwork for most claims, 24/7 support, and an app-first claims experience, landlords get clarity, speed, and control from day one. Digit achieved a 99.9950% claim accuracy rate last year, meaning almost all claims were settled correctly, with barely any needing dispute escalation.
If you want to secure your property while keeping the claim experience stress-free, a smart, landlord-friendly policy from Digit might be the right fit.
Here is a quick checklist to help you choose the right home insurance coverage
Even with insurance, some small issues won't be covered. Setting aside a small emergency fund makes acting quickly when tenants report minor problems easier. You can use this fund for:
A well-documented rental history saves time during disputes and helps with insurance claims. Good records also make tenant transitions smoother. Keep a file, digital or physical, that includes:
Renting out property can be both rewarding and demanding—every decision matters, from drafting the right rental agreement to selecting home insurance supporting landlords.
Choosing a reliable provider like Digit Insurance adds a layer of protection, helping you safeguard your property and rental income. Stay informed, stay secure, and confidently make the most of your investment.
