How to Limit the Impact of Lawsuits in Real Estate

How to Limit the Impact of Lawsuits in Real Estate

Lawsuits in Real Estate have become a normal thing in today’s litigious society. Real estate has a lot of potential for financial good and financial bad for the investor. In no way will disaster come upon you faster than with an ill-timed lawsuit. You need to cover your bases. Here are some things you can do to limit the impact.

How to Limit the Impact of Lawsuits in Real Estate: Insure Your Properties

Insurance is going to cover your back in a lot of worst-case scenarios. It’s also nothing short of essential if you’re renting out property space for others. Building insurance, contents insurance, and public liability insurance are three of the most common types of insurance you should look into. Building insurance covers damage from natural disasters or crimes (like theft or vandalism). They often include insurance against fire, rainstorm damage, etc., but may not include things like earthquakes or hurricane flooding. Look into this if your property is in an area with extreme weather. Contents insurance covers you for losing personal items to theft or damage. Public liability protects you from visitors or renters hurting themselves on the property and suing you for their medical bills. If you can afford it, landlord insurance often covers all of the previously discussed.

Create a Separate Company

The LLC structure is ideal for protecting personal property from your business liability. Why? It’s all about asset protection. Basically, having an LLC separates your business assets and your personal assets. If the LLC gets sued, it will have nothing to do with your personal assets. It also can help protect you from liability in relation to business partners – whereas, in a general partnership (for example), you are liable for legal issues involving your business partner. LLCs are not legally impregnable by any means. So make sure you’re familiar with your state’s regulations and rules pertaining to LLCs.

How to Limit the Impact of Lawsuits in Real Estate: Keep Your Contracts Sharp

Make sure you know how to draw up a proper rental contract for a tenant. If you don’t include everything you need to, you could find yourself in a difficult position. For example, most contracts bar the tenants from messing around with utility systems (such as the electrical) themselves, and instead specifically state that the landlord must take care of it. If the tenant goes digging around in the walls and electrocutes themselves, and tries to sue, you should be contractually held not to be at fault.

Nobody enjoys legislation. Sometimes, it’s necessary in order to keep things fair. Other times, it’s really only because somebody is trying to take advantage and get an easy payout. Protect your hard-earned investments, and make sure you’re prepared for the worst.

Check out this article on what to know before renting out your ADU!

 Steelbridge Realty LLC  is a Licensed Real Estate Brokerage that utilizes cutting-edge marketing techniques and data-driven Real Estate solutions in today’s ever-changing environment. Our group of professionals have decades of experience and have navigated through many business cycles. Our diverse background gives us the tools to guide people towards successful decisions.

 



 

$1,795,000
Land For Sale
Active
0.4175
ACRES
LEE
COUNTY
3508 Stuart Ct
Fort Myers, FL 33901
York Manor Subdivision
$5,800,000
Land For Sale
Active
1.3945
ACRES
LEE
COUNTY
1215 & 1233 Braman Ave
Fort Myers, FL 33901
Fort Myers Subdivision
$15,950,000
Single Family Home For Sale
Active
4
BEDS
9
TOTAL BATHS
10,033
SQFT
1240 Coconut Dr
Fort Myers, FL 33901
Palm Gardens Subdivision
Price Change - 2 weeks ago
$885,999
Single Family Home For Sale
Active
3
BEDS
3
TOTAL BATHS
3,467
SQFT
1249 Osceola Dr
Fort Myers, FL 33901
Riverside Subdivision
$2,290,000
Single Family Home For Sale
Active
3,230
SQFT
3752 Harold Ave
Fort Myers, FL 33901
Fort Myers Subdivision
$599,000
Single Family Home For Sale
Pending
3
BEDS
3
TOTAL BATHS
2,503
SQFT
1362 Braman Avenue
Fort Myers, FL 33901
Becklers Riverside Add Subdivision
Listing courtesy of Sara Kyle of NEXTHOME ADVISORS
$1,875,000
Single Family Home For Sale
Active
4
BEDS
4
TOTAL BATHS
4,684
SQFT
3232 Mcgregor Blvd
Fort Myers, FL 33901
Riverside Subdivision
New Listing - 5 days online
$335,000
Single Family Home For Sale
Active
3
BEDS
2
TOTAL BATHS
2,109
SQFT
1420 Moreno Ave
Fort Myers, FL 33901
Mcgregor Estates Subdivision
$6,000,000
Single Family Home For Sale
Pending
5
BEDS
5
TOTAL BATHS
7,719
SQFT
2844 Valencia Way
Fort Myers, FL 33901
Lynns Add Subdivision
$479,000
Single Family Home For Sale
Pending With Contingencies
3
BEDS
4
TOTAL BATHS
1,784
SQFT
1414 Alhambra Dr
Fort Myers, FL 33901
Fort Myers Subdivision
$569,000
Single Family Home For Sale
Pending With Contingencies
3
BEDS
2
TOTAL BATHS
1,903
SQFT
1353 Sunbury Dr
Fort Myers, FL 33901
La Chelle Manor Subdivision
New Listing - 5 days online
$524,900
Single Family Home For Sale
Active
3
BEDS
3
TOTAL BATHS
1,720
SQFT
1334 Sunbury Dr
Fort Myers, FL 33901
La Chelle Manor Subdivision
$199,900
Land For Sale
Pending
0.19
ACRES
LEE
COUNTY
1461 Barcelona Ave
Fort Myers, FL 33901
Fort Myers Subdivision
Price Change - 4 weeks ago
$2,795,000
Land For Sale
Active
1.1381
ACRES
LEE
COUNTY
1301 Poinciana Ave
Fort Myers, FL 33901
Poinciana Park Subdivision
Price Change - 4 weeks ago
$499,900
Single Family Home For Sale
Pending With Contingencies
6
BEDS
3
TOTAL BATHS
2,925
SQFT
1473 Barcelona Ave
Fort Myers, FL 33901
Valencia Terrace Subdivision
$950,000
Single Family Home For Sale
Pending With Contingencies
3
BEDS
3
TOTAL BATHS
2,898
SQFT
1436 Cordova Ave
Fort Myers, FL 33901
Fort Myers Subdivision
New Listing - 4 days online
$659,900
Single Family Home For Sale
Active
4
BEDS
2
TOTAL BATHS
2,306
SQFT
1542 Olmeda Way
Fort Myers, FL 33901
Allen Court Subdivision
$389,000
Single Family Home For Sale
Pending
3
BEDS
3
TOTAL BATHS
1,540
SQFT
1573 Maravilla Ave
Fort Myers, FL 33901
Allen Park Subdivision
$969,000
Single Family Home For Sale
Active
3
BEDS
2
TOTAL BATHS
2,153
SQFT
1433 Lynwood Ave
Fort Myers, FL 33901
Fort Myers Subdivision

 

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