_{Presented by Astra Properties LLC}
Strategic Risk Management in Real Estate: Enhancing Business Prosperity through Effective Landlord Insurance
_{By Nicholas Burrus · 01/12/24
Thanks for tuning in todays read! Read time roughly 5 mins.}

Top of the morning 🫡 

Hope you’re dialed in and ready finish the week off strong.

As you know, investing isn't just about acquiring more wealth and building an empire - it's about protecting what's yours.

What are you doing to protect your investments? 

Don't lose it all - you better have a well-planned strategy to protect your business. 

That's what we'll talk about today.

Let's dive in!

Landlord Insurance is NOT Mandatory - But Get One Anyway

^{It will protect your rental properties from financial setbacks}

Investing can mean taking some calculated risks.

You can be bold with a business decision while protecting what you already have. 

Taking out landlord insurance is one way to protect your rental properties. It protects your investments from financial setbacks.  

Landlord insurance is different from regular home insurance. It is specifically for rental properties.

It's not mandatory but it’s an added layer of protection for your peace of mind. 

It covers damage to the building caused by accidents or natural disasters and liability if someone gets hurt on the property. 

Landlord insurance can also provide financial help if the property becomes uninhabitable and the landlord loses rental income.

Insurance isn’t cheap but there are ways to lower the premium prices.

How to Save Money on Landlord Insurance 🤑 

The cost of landlord insurance will depend on many factors, including:

• Claims history

• Replacement costs

• Construction type

• Housekeeping

• Occupancy

• Exposures

To keep the price down, you have to make your rental property look as good as possible to insurance companies. Here are ways to save money on landlord insurance:

Watch out for wear and tear

A well-maintained rental property has a low risk of damage - that's exactly what insurance companies are looking for!

• Keep regular maintenance checks

• Repair minor damages

• Upgrade the amenities of your rental spaces

• Clean all walkways and hallways

• Maintain the condition of the roof and foundation

Raise the deductibles

Increasing the deductibles will lower the landlord insurance premiums.

Deductibles are the amount you'll pay on your own before the insurance covers any claim expenses. 

Just remember: increasing the deductibles also increases the expenses you're accountable for when filing a claim.

Invest in safety features

List down all the safety features and upgrades done in the rental property to the insurer:

• Security cameras

• Smoke detectors

• Fire alarms

• Energy-efficient lighting

• Connectivity between security devices

• Well-maintained fire doors

• Child safety measures

• Upgraded plumbing, heating, or electrical systems

Safety measures minimize risk on the insurer's end. The premiums will go down if they see that your rental space is safe and well-maintained. 

Check for discounts

No shame in asking for discounts.

Some insurers provide multi-property and alumni discounts, etc. 

Some insurers even offer discounts for features like connectivity between security devices or veteran benefits. At the very least, you should get preferential rates for maintaining a good insurance score.

Take out a master landlord policy

Got multiple rental properties?

One of the best ways to reduce landlord insurance premiums is taking out a single master's landlord policy instead of getting multiple policies. 

Besides having one policy to insure all properties, a master landlord policy covers risks other policies may have overlooked. 

Consult with trusted experts

Whether exploring eligibility for discounts or taking out a master landlord policy, consult with trusted experts to get the best premium rates. 

Work with an experienced real estate agent or a trusted insurer to get the protection you need at the best prices.

Another option to all of this is putting each asset in separate LLCs, which a lot of people do!

Buying a House Near an Airport - Is it a Good Investment? 🛫 

^{What are the risks and rewards of a sky-high investment?}

Imagine finding a house that's perfect in every way except it's near the airport. 

If you're moving to the house because you work at the airport, traveling from point A to B is definitely convenient.

You can also rent out the house after moving out. 

Open spaces near the property could soon transform into a concrete jungle because places near airports are constantly developing. 

Increasing air traffic leads to more hotels, restaurants, shopping districts, and amenities. 

That could present an endless stream of business opportunities if you buy a property nearby.

The best part about buying a house near an airport is the potential increase in property values.

This could lead to higher rental prices and increasing property values.

Airports attract workers, tenants, new infrastructure projects, and businesses - the vibrant economy will directly impact your ROI.

The possibilities are endless!

Of course, there are obvious issues with living in busy places like an airport. These issues are:

Noise Pollution

Noise can be a problem in busy districts, but this is not the case all the time in properties near airports. The noise level will depend on how busy the area is. 

The noise level is tolerable if the house is far from the flight path.

Tall buildings and sealed doors and windows also cut down noise further, so noise becomes almost a non-issue.

Even if the house is under a flight path, you can minimize the noise with a little DIY soundproofing on a weekend or two. 

IMPORTANT: Many carriers are also replacing noisy aircraft with quieter models to meet the Federal Aviation Administration's (FAA) quiet noise requirements.

Health risks

Noise pollution is linked to a greater risk of heart disease and hypertension. The noise from busy airports can affect neighborhoods at least 10 miles away. 

Air pollution is also an issue in nearby places. Airplane emissions produce "ultra-fine" particles that can be inhaled or absorbed by the body. 

Building restrictions

Some properties near airports have building requirements. Property owners should comply with the zoning regulations because of flight path considerations.

Our advice is to do your due diligence.

• Find out if the house is under a flight path to find out if noise will be an issue and what kind of soundproofing is needed to solve the problem (noise map here). 

• Check how far the property is from the airport to see if health risks and safety are a serious cause of concern. 

• If you have upgrades, expansion, or customizations in mind, plans will require approval. 

• Most important of all, check if the property fits your lifestyle and long-term investment goals. The last thing you want is to get buyer's remorse after processing all the paperwork.

💫 What Else is Poppin? 💫 

Multimillionaire showdown: Biotech CEO Bryan Johnson feuds with Elon Musk

^{Clearly, Johnson isn't a fan of Musk}

Elon Musk found yet another critic in Biotech CEO Bryan Johnson. 

The Centimillionaire Blueprint exec slammed the billionaire Tesla CEO for mocking his appearance and bizarre antiaging experiments. 

The feud started when an X user compared before and after images of Johnson, claiming the biohacker looked better before the antiaging experiments, with Musk responding, "100." 

"The difference between Elon and me: I'll nourish you and drink your blood; he'll fire you and leave you to die," Johnson wrote on X on Sunday. 

Johnson appears to be referring to Twitter's mass layoff since Musk took over the platform in 2022. 6,000 people, or about 80% of the Twitter staff, were fired after the acquisition, which Musk described as "not fun at all."

Johnson drew flack for his quest to restore his 46-year-old earthly shell into 18.

His $2-million-a-year rigid anti-aging routine included bizarre experiments to prolong his life, including a $25K-per-shot anti-aging intervention, blood transfusions using his son's blood, and taking 111 pills a day.

Musk has yet to respond to Johnson's comments.

Catch the latest episode of the AstraCAST podcast! 📱 

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You can catch me and Marcos on YouTube, and Spotify! Catch up with us as we bring on guests from all parts of the industry covering everything from real estate, personal development, to growing a business through acquisitions, rentals, and renovations.

Don’t be shy, check us out here!

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