We just observed the 10 year anniversary of 9/11. The take away for me was the reminder of how precious life is and the fact that our lives as we know it can be turned upside down in an instant. So how does that impact owning rentals?
We need to be prepared. Once you own real estate you need to have a living trust, a will, written instructions for family, insurance such as Term Insurance, that would cover the mortgage on the rental so the loan would be paid off and the surviving family members can receive the income from the rental. Have a list of all your contacts associated with the rental – plumber, accountant, gardener, insurance agent etc. Have a file with everything related to the rental so people know where to go to get info.
Make sure bank accounts have appropriate names on the accounts for the rentals. I added my husband to my bank accounts even though I own the rentals so that in the event of my passing he can still access the accounts, pay bills etc.
Life can get complicated when things happen unexpectedly try to be as prepared as possible.
I have a client that knew he was ill and terminal and came to me to take over management of his rentals so that when the time came it wouldn’t be a burden to his wife. Now, we are educating his wife about the properties and working with her. Her comment to us all the time is, “Thank you for handling all this for me. It is such a relief.” I really admire her husband for taking action to protect his wife. He truly loved her. I feel blessed to be able to lift the burden and to protect her.
If you have property management needs in Santa Cruz County check us out we might be able to help you. www.PortolaRentals.com
Kathleen
