3 Ways a Mortgage Beats Renting for Aspiring DIY’ers

If your urge to undo and improve is strong enough, you might be able to put that energy to positive use by owning your home instead of renting. Besides the satisfaction you get from doing-it-yourself, you will probably come out financially ahead.

You Don’t Need Permission

Renters must have permission from their landlords or property managers to make changes to the home, even for the smallest improvements. They may balk at letting tenants paint, change faucets, replace faucets, or even have carpets cleaned.

Unless there’s a homeowner association involved, homeowners have complete control over their property. If they want brightly colored walls or flooring, the choice is theirs. They can remodel to the extent their budgets and abilities allow, something that few, if any, landlords will allow.

The two major issues that keep landlords from allowing tenant changes include skepticism about the tenant’s qualifications as a do-it-yourselfer and the budget. Even without the labor included, even the simplest home remodeling projects cost money.

Homeowners Can Borrow the Money

The first step in buying a home is to meet with the lender will calculate the monthly payment based on the down payment and interest rate. Mortgage payments are almost always lower than monthly rent rates. The interest rates for primary home loans are usually the lowest available for any kind of borrowing.

Home values appreciate over time and you can turn the equity into a home equity line of credit (HELOC) to fund other home improvement projects that will add value. HELOCs also carry lower interest rates than other kinds of consumer loans, especially compared to credit card interest rates.

Home Improvements Add Value

By putting your do-it-yourself skills to good use, you add value to a property. How much depends on the project and the demand for the improvement. Few projects return 100 percent of the retail cost, but when you contribute the labor, you will realize a net gain.

People who flip houses make substantial amounts of money improving homes and reselling them when finished. When going this route, research which improvements are in demand in your area. Giving home buyers what they want will enhance the value of your work and possibly speed the sale.

Anyone who enjoys home improvement projects and has the do-it-yourself skills to make the work profitable has the advantage as a homeowner. For them, a mortgage is definitely better than a rent payment.

Eminent Tips To Be Noted Before Renting The Apartment

English: Rental Apartment Towers in Newport, Hudson Waterfront, Jersey City, NJ with Newport Marina in foreground. (Photo credit: Wikipedia)

The need of a new place is taking a serious change as the population is growing to an all new level. It is an inevitable truth that buying a new flat need a lot of investment and it becomes quite difficult for middle-class people to get such services. However, during such instances only rented apartments can be your one stop solution. With the help of this service, you can enjoy the comfort of your own home, by paying a stipulated amount of money to the landlord every month, just like the renting fees. This is surely going to help you save some extra money, without any hassle.

Know more about tenants

It is a known fact that maximum tenants do not want to spend more than 30% of their annual income behind house renting services. Thus, you should focus on the renting value accordingly. However, there are some major points to be noted down while selecting the renting value of your place. Look for the location of your apartment and the nearest spots available. This will help you to make a realistic budget plan for your apartment. If you place is located near any hospital or shopping mall, then the price of your rented apartment will surely increase. On the other hand, to get an idea about the latest renting value of your surrounded area, you can visit the official websites and research well.

Rental services can be of two types. At one, place, you can only ask for the rental fees of the house, and in other cases, you will ask for a complete rental package fee, which include electricity bills, water bills and more. However, nowadays, people mainly ask for the rental fees without electricity services. There are separate electricity corners for the tenants, where they have to pay their own bills for electricity usages. However, if you plan to include the electricity bills with the rental fees, then the monthly salary value will increase incredibly. 

Points to check

· It is ideal to check the background of the tenants before giving them the keys of your house.

· Moreover, you might have to focus on the ID proof and criminal background of the tenants, before making any final decision.

· You must follow the legal norms and regulations of your place to avoid any sort of negatives later.

· Check for the neighborhood areas of your place before finalizing the rental fees. People will not like any lousy neighborhood, and that might hamper the reputation of your apartment.

· In case you have a parking lot or garage, attached with your apartment then your rental salary will get hiked to an all new level. Tenants can take the help of your garage service, which will add more income to your monthly budget plan.

Register with an online site

Always remember that you need to have a good reputation as people will judge your credibility, as well. They will ask for your identify proof and your credibility before renting your place. However, you can register your name and apartment details with any reliable and official site, which is known for providing best rental places to the navigators. This will help you to come in direct contact with the prospective buyers, without problem. They might even ask for your credentials by checking the nearby police stations. Only a good reputation can help, in this regard.

However, you can take the help of online rental professionals who can offer some of the best tips and advices, which you must follow before renting your apartment. Follow their steps religiously for gaining maximum profit. This can be a serious helping hand for all.

Author Bio: Mark Benson will provide the best possible solutions when it comes to Dallas apartment locators, with years of experience under his sleeves.

How to Grow Your Real Estate Portfolio After 50

Folks over the age of 50 have a lot of options as it relates to retirement savings. After the age of 50, you are allowed to contribute more to a 401k or IRA account. Investing in real estate is another option that will help those looking to retire accelerate the growth of their overall portfolio. How can you use real estate properly to help you save for retirement and live comfortably after you retire?

Understand How a Property Generates Revenue

The first thing that you need to understand is how a property generates revenue. The first way that a property can generate revenue is to provide a monthly rent check that will go straight into your retirement account.

Another way for a property to generate revenue is to be flipped soon after it is purchased. Flipping refers to the process of buying a property at below market value, fixing it up and selling it for a profit as soon as possible.

Which Properties Should You Rent?

Properties in college towns, areas where large companies are present and areas where home ownership is low are all ideal places to buy properties with the intent to rent them. This is because college students, executives and those who don't have the resources to buy a home are always on the lookout for reasonably priced housing.

Before you buy a properties with the intent to rent them, make sure that you do pre purchase inspections. Building inspections prior to purchase allow you to ensure that any property that you rent is going to be up to code. If a tenant is not provided with a clean and safe place to live, that tenant may not have to pay rent until all issues are corrected.

Which Properties Should You Flip?

Foreclosed properties are prime targets to be flipped. However, you should make sure that you understand the potential pitfalls of buying a foreclosed property. First, you may not be able to do pre purchase inspections. This is because you buy the property as is. Second, you need to have the money upfront before you buy a foreclosed property to put inside of a retirement account. If you don't have sufficient funds to buy a home, find an investor who will be able to help you.

Investment Income Is Tax-Deferred

Feel free to buy as many properties as you would like inside of your retirement account. This is because the money in your account is not taxed until it is taken out of the account. In addition, you don't have to worry about paying capital gains taxes on your properties.

For example, if you sell a home to someone else, you don't have to pay capital gains taxes on the profit that you make from selling the house. Otherwise, you could be charged as much as 15 percent or more in taxes each time you realized any type of capital gain on your investment. 

Enjoy Compounding Returns

Rental income and profits realized from the sale of property all flow to your retirement account as soon as your receive them. The money is then reinvested wherever you want it to be reinvested. This allows you to use a rent check to buy shares in a mutual fund or investment that will offer compounding returns over time.

Anyone looking to buy real estate should understand how real estate generates income and how to take advantage of that money. Remember, building inspections should be done on any property that you buy whenever possible. Doing so allows you to avoid buying properties that will eat away at your profits because you have to spend money on repairs and maintenance.

What to Keep in Mind before Becoming a Landlord

Becoming a property owner can sound like an exciting venture, as well as a way to make extra money. Being a landlord has been considered a passive investment. That is you do not need to do anything extra for the money to come in aside from letting the property. Being a landlord can actually be a very involved experience. Here are some things that you should keep in mind if you are looking to become a landlord. 

Letting can take time

Some landlords believe that if they just advertise their property someone will be interested and they will have someone letting the property within the next week. In fact, sometimes properties can remain on market and it takes a while to find a suitable tenant. Depending on the rental market, your property may or may not be considered desirable. It is important to look at the current rental market in your town as well as the average market rent for a place such as yours. Though this may take time, finding the right person and the right prices is a process that needs to happen. 

You will need to keep up the property

Though you will be letting the property to someone else, it is the responsibility of the landlord to keep up the property. If something inside of the home or flat breaks or malfunctions, it will be up to you to get it fixed. Fixing issues on the property on time is one of the requirements of being a good landlord. Not performing house maintenance or leaving the homes appliances broken down may give your tenant a reason to get out of their lease and leave the home. Make sure that you fix maintenance issues within a reasonable time frame. 

You will need insurance

Though landlords may require that their tenants have insurance, the landlord will need to have insurance as well. If you intend on letting a property, you will need to protect yourself by having insurance. Citylandlord has a number of insurance policies offered to those who are interested in letting properties. These insurance policies can cover everything from interior decorations of the home, to rental coverage if your tenant skips out, to emergency assistants for issues related to the property. You can craft your insurance policy to meet your need and make sure you are completely covered.

Before you embark on your journey to become a landlord, make sure to learn the ins and outs of becoming a landlord. By equipment yourself with the right knowledge and the right products you can be a successful landlord and form relationships with good tenants. Make sure that your property and your ability to rent is solid before you place the home on the market. Be sure to get landlord insurance as soon as you decide to become a landlord. Once you have everything settled, you will have much less to worry about once you begin to let your property to tenants.

Should You Purchase a Home After Retirement?

Most people make some major changes to their lifestyle after retiring. Some retirees spent years living in a community they hated and want to move away. They may want to consider buying a home, but aren’t sure whether they can afford to do so while they are no longer working. However, it may still be possible to purchase a home.
What to Consider Before Buying a House in Your Golden Years

You will want to make sure that you make an informed decision. There are a number of things that you will need to consider before buying a home during retirement:

Understand Your Budget

Most retirees are living on a tighter budget after they retire. You will need to know how much money you have on hand to spend when looking at homes for sale in Atlanta Georgia.

Cost of Renting Versus Buying

Many people rent houses after retiring because they believe that is all they can afford. There is nothing wrong with being thrifty, but you will need to know what the actual costs are before making a decision. Trulia conducted a study which found that it is actually cheaper to buy a house in the 100 largest cities in the country. That study also found that the savings are at least 40% in 85% of these cities.

Interest Rates

Interest rates are another important factor to take into consideration. The banks have offered record low interest rates, which mean this may be a perfect time to buy. Some people are still worried that they may not be able to secure a mortgage in the future, because the Federal Reserve has said that it may taper its stimulus plan. However, the stimulus will probably run in the foreseeable future. Mortgage rates have actually continued to drop as the Fed announced that it will continue its monetary easing policies.

Stability of Income

You will also need to consider how stable your income is before deciding whether to buy or rent. Buying a house is a long-term commitment. You may need to think twice if you think your income will drop in the future. This may be a problem if you have a temporary structured settlement or other windfall that won’t last forever. You will also need to consider it if you are going to be working part-time after retiring from your main job, because you probably won’t work forever. You definitely don’t want to use up your entire savings trying to pay for a new house if you won’t have much income in the future.

Ability to Get a Down Payment

You will also need to have a down payment to buy your house. You may not have a lot of money on hand. However, you may be able to borrow money from your 401K to use. According to Ben Barzideh, a financial wealth consultant, you can borrow up to $50,000 or half the value of your portfolio. This could be a great way to come up with a down payment for your new house.

About the author: Kalen writes about real estate financing and investing. He hopes to invest in some rental properties later this year.

Boost your Pension with Property Investment

Property market (Photo credit: Alan Cleaver)

Twenty years ago, a carefully cultivated pension plan was your ticket to a comfortable retirement. Sadly things have now changed and with interest rates on savings accounts dismal and pensions performing at an all-time low, it is a good idea to look into alternative ways of generating some extra income if you want to enjoy your twilight years. So is property investment a good idea, or is becoming a buy to let landlord more trouble than it’s worth? 

The State Of The Rental Market

The UK rental market is currently booming. First time buyers are unable to gain a foothold on the property ladder and millions are being forced into rental accommodation as the recession continues to bite. As a result, demand for rental accommodation is far outstripping supply in many areas, which makes property investment a smart move for anyone with some cash to spare. 

How Easy Is It To Get A Mortgage?

Lenders have tightened up their lending criteria considerably since the property market crashed in a spectacular fashion a few years ago. Most now expect borrowers to have at least a 25% deposit, so unless you have the cash, you will struggle to obtain a buy to let mortgage. Lenders will also expect your anticipated rental income to be higher than interest on the loan. 

Will Buy To Let Properties Generate A Good Income?

The average savings account pays less than 1% these days, so even if you have tens of thousands stashed away, you will be lucky if you can generate much income from it. The alternative is to invest in some high-risk schemes, but if this is your retirement pot, you might not want to play Russian roulette with your savings. Buy to let yields are a much better bet in the current market - rental yields do vary, but on average you can expect to see a good 5-6% return on your investment, even taking into account expenses incurred. 

Things To Consider Before Investing In Buy To Let

Buy to let property investment is an excellent solution for a lot of people, but it is not all plain sailing, so before you jump in feet first, you need to think about a few things.

• Location – not all locations are equal. London and the south east generates a far higher rental income than some other parts of the UK, so do your homework before you invest in property in your area. 
• Choose your target market carefully – decide in advance what type of tenant you want to attract. Young professionals, students, families or social tenants: they all have different requirements. 
• Void periods – you will need to factor in periods of time when your property is empty. No tenant means zero income, so bear this in mind. 
• Self-manage or letting agent – managing rental properties requires a time commitment, which might not be convenient, but if you use a letting agent, the service comes at a price. 
• Legal responsibilities – landlords are subject to all kinds of legal requirements, so make sure you are aware of your legal responsibilities before you invest in a buy to let property and advertise for tenants. If you fall foul of the law, you could end up being prosecuted. 

Bio

John is approaching retirement, so he has been looking into ways of maximizing his pension income. He used the compensation he received from www.hardwickmissoldmortgages.co.uk and invested it in a small terrace property in his local area. Now he enjoys a steady income rental from a young professional couple.

Vacation Budgeting: Is it Wiser to Rent or Drive Your Own Car?

There's no clear-cut answer when you're asking whether it's better to rent a vehicle or use your own car. However, there are several calculations that will help you do the math. With these equations, you can make a budget-minded choice for your next road trip.

Fuel Costs and Opportunities to Drive Greener

Your fuel cost is one of the easiest things to calculate for your trip. You can find the MPG of nearly any vehicle online. Simply compare the MPG for your car with that of a rental. If you're not taking a lot of luggage with you, opt for the smallest car you can comfortably fit in. Renting a hybrid vehicle will also cut your fuel costs. Unless you have a fuel-efficient hybrid vehicle yourself, you can almost always find a rental with better fuel mileage than your own vehicle. A rental will probably win this category.

Maintenance Costs vs Rental Fees

If you drive your own vehicle, you need to consider the maintenance costs associated with your trip. Your next oil change, tire rotation, front end alignment, and factory scheduled maintenance will all be moved up by a long road trip. AAA estimates that the average cost for maintenance, not including oil or gas, is 4.42 cents per mile for a medium-sized sedan. The cost for tires is 0.91 cents per mile. You'll cut these costs with a rental and replace them with your rental fees. Divide these by the number of miles you're driving for a comparison.

Vehicle Depreciation Considerations

Every mile that you put on your car speeds its depreciation. Most vehicle depreciation comes from the number of miles driven and not the age of the car. Use a resource like Kelley Blue Book to calculate the current value of your car as well as the projected value with the mileage from your trip. This will tell you what your long-term depreciation costs will be.

Paying Now vs Paying Later

Comparing your calculations for the above categories will let you know whether a rental car is ultimately cheaper than driving your own car for your next road trip. The last thing that you need to consider, however, is when you'll be paying. Many costs associated with driving your own vehicle come up later. You won't pay upfront for depreciation or maintenance, while you will pay upfront for your rental. If your car needs maintenance before the trip, however, you should visit a qualified shop like Tindol Ford to have this done before you leave.

The Value of Comfort

Comfort doesn't have a monetary value, but it's worth considering. A rental will be fresh and clean for your trip with no extra effort on your part. However, your vehicle may have features the rental does not. Consider the benefits of a larger trunk, more cup holders, or heated seats, whether these come with your own car or the rental. If this competition is close, this may tip the scale. Doing your math will help you make the best choice of vehicle for your next trip. Simply add up these important values and you'll find the best answer for your needs.    

Investing in Rental Property Can Be a Profitable Business If Done Right

(Photo credit: Wikipedia)

Investing in rental property seems easy. Buy a rental house, find some tenants, and let the money roll in. It's not as easy as it looks. Before jumping into this glamorous business be sure to investigate and get some buy to let mortgage advise . 

The Upside to Being a Landlord.

For some people, investing in anything but land is dumb. Owning a mutual fund or stock is like owning air, it's intangible you can't hold it or see it. Then we have the land owners who think that a piece of land is a real asset. It's solid, you can walk on it, if it is a house you can paint it or just look at it. It's real. For many, they would have it no other way.

1. Cash Flow.

As a landlord, if you have done it right you have a positive cash flow that puts money in your pocket every month. Your rental income, minus your mortgage and expenses is your profit. Your property is producing something for you.

2. Appreciation.

Your property is increasing in value every year if you purchased it right. Appreciation, though a small amount, over the years it can turn into a substantial amount. Even if there is not appreciation you still are going to experience an increase in the house value because of inflation.

3. Leverage.

Unlike buying a mutual fund or stock, with a rental home you only have to invest a percentage of the homes value. You control the entire investment, but only pay a small fraction of it's cost. The property is the security for the debt and not your personal property. Only the purchased property is at risk.

4. Tax Advantages.

Even if you do not receive a positive cash flow you still are deducting expenses. You are paying down your mortgage and are not paying taxes on this money. There are many types of deductions that can be beneficial in reducing your tax liability overall.

There are some good financial reasons to own rental property. Especially the tax advantages. But there are also quite a few downsides to owning a rental house. 

1. Bad Tenants.

Getting the tenants from hell is a distinct posibilty in the rental business. Many people do not respect other peoples property and treat your lovely rental like it's a dumpster. The nightmare scenarios are infinite.

2. Liability.

If someone gets hurt on your property you are responsible and could be in line for a lawsuit. Having adequate liability insurance is an absolute must or someday your tenants will be owning your nice rental home.

3. Vacancy.

There is the distinct possibility you may not be able to rent the home. Are you able to cover the mortgage and expenses for an extended period of time. It's important to have enough cash in reserve for this occurrence.

Investing in rental property can be a very profitable business but can also be a nightmare if done improperly. Make sure to check out your tenants with a background check. Get all your deposits upfront and have good lease that protects you in all contigencies. 

5 Costs Homeowners Pay That Renters Don't

Image by GreyArea via FlickrThe debate over Renting vs. Home Ownership goes on. The common advice is "Don't waste your money on rent, invest in a House." With the many costs of home ownership, renting is starting to look a lot better. Lets start with the down payment. Renters don't have to pay that big up front expense. The home owner has the pleasure to also have a nice mortgage payment to make every month for thirty years. That's quite a long lease. Plus if home owners don't pay they get foreclosed on, renters are just evicted.

Property Taxes

These are the taxes paid to your local and state governments for salaries and services of government. It's a never ending expense that just goes up as the value of your home appreciates. They vary according to region. Looking at the property taxes for the home is important when your purchasing. Sometimes living in a different county can sometimes lower your taxes because of differing assessments.

Home Maintenance.
Renters are lucky because when the water heater breaks they just have to call their friendly landlord to fix it free. The home owner has to go through the expense of buying and paying to install a new one. Maintenance is a big factor in home ownership. The rule of thumb is to set aside 1% of your homes value for yearly repairs. On a $200,000 home, you will need $2,000 per year. I believe this is a low figure. I would estimate that 4% is the necessary amount needed for home maintenance, at least $8,000 per year for a $200,000 home.

Mortgage Interest.
Again renters win. Over the duration of a 30 year $200,000 mortgage at 5%, the home owner gets the privilege of paying over $200,000 in interest. The amount of interest depends on your interest rate and your duration of the loan. The benefit of paying interest is home owners receive a mortgage interest deduction on their tax return to ease the pain a little.

Homeowners Insurance.
Renters don't have to pay this expense, but they should carry renters insurance. Renters insurance covers the contents of the apartment. Home Insurance covers the structure itself and sometimes the mortgage payoff amount. If your home is lost to fire, flood or other disaster home owners insurance comes in to save the day and puts everything right again. Homeowners should yearly check their policies to see if they have replacement cost on their insurance, not just current value. The average insurance is $950. But if your living in a hurricane, tornado, or flood plane your insurance can be substantially higher.

Real Estate and Legal Fees.
When you rent you just leave a deposit and first months rent and you then get the keys. A home owner has to pay real estate agent fees, lawyer fees, title transfer fees, and closing costs when purchasing and selling a home, renters don't have any of these expenses.

It's understood that landlords pass on these fees to their tenants who rent. Yet landlords get the profit that comes when a home is sold. Even though a mortgage payment can be lower than a rental amount, many other things go into the finances of home ownership.

Do I Rent or Own When the Kids Are Gone?

I have been thinking about where I'm going to live when all the children are off on their own. What are my choices? Stay where I am, rent ,or downsize to smaller home. We are presently in a 5 bedroom house that my wife and I have raised 6 children in. We have always been comfortable here. The kids have plenty of room and I have a den where I hide from all of them.

Presently 2 have already left to lead their own lives. Another is renting an apartment at college. Two are living at home while attending college. The last is 10 years old and I don't want her to ever leave.

I want to make the decision as soon as 5 years, but can wait till as much as ten years from now. There are several factors to consider.

Do I need the money from the sale of the house to live on? 

My initial plan before the advent of the real estate crisis was to sell my home for a tidy profit and use the proceeds to create a nice income producing investment. That's down the drain for the foreseeable future. In ten years from now I will still be working so still that's not a problem.

Will I be able to handle all the costs of home ownership? 

The general consensus is a home is a good investment and renting is a waste of money. I have done the math and have figured that if I sold my house today, less all the mortgage payments, taxes, new roof, etc. that I have spent, I am at a net loss. So, when crunching the renting versus buying numbers, make sure to include all the costs. You also may want to factor in possible gains if you had invested the equity in your home in something else.

Do I need the mortgage interest tax deduction? 

There are no clear-cut answers because every one's tax situation is different. I have recently refinanced so I am paying more interest at the beginning of the mortgage term. If your at the middle or end of your mortgage you will be paying less interest thus the deduction will mean less to you.

Do I have the personality for renting? 

I have always been in my own home. Will I or my wife be able to to stand the close quarters that renting gives? We are use to the quiet and privacy of being in a home. I have been in the apartment rental business all my life and have seen the variety of tenants that can drive you crazy. You have to be of a certain temperament to live so close to others.

Some people take great pride in owning a home. They like having a garden and putting their own stamp on the house with custom paint, wallpaper and built-ins, which is something you can't do with a rental. If you're a pet owner, you may have trouble finding a rental that will accommodate Fido.

On the other hand, renting gives you the freedom to pick up and visit your children or grandchildren for a few months between leases and not have to pay the mortgage on a house you're not living in or worry about watering the lawn. Another upside to a rental: If you don't like the neighbors, you can move out once the lease is over.




Additional Posts On Renting:

7 Reasons To Not Buy A House

Related articles

• Why Renting Can Be Cheaper (benjaminste.in)
• Own-ward Bound? (time.com)
• Data Porn: Visualizing Our High-Rent Woes Justifies our Rental Lifestyle (sf.curbed.com)

Insurance Coverage Changes If Your Home Is Uninhabited or Rented

Image via WikipediaIn today's times many houses are empty waiting to be sold or foreclosured on. Who's looking after your house since you moved, your neighbor? You say it's insured so what's the big deal. It may be a problem if your insurer has different rules for an unoccupied home. 
 
Standard insurance policies are designed to cover homes that are occupied. If you leave your home for a month or longer, your policy may not cover damage or losses. If someone gets hurt on your property,because your not occupying it, your insurance may not protect you from the liability. 
 
In regard to fire claims, if your home is vacant or unoccupied for 30 days, some insurers exclude coverage for fire damage. For some insurers it could be 60 days. State Farm homeowners policies won't cover vandalism if the home is unoccupied for 30 days. Also if a frozen pipe bursts when the home is vacant they won't cover it. 
 
If your home is going to be vacant for 30 days or more here's what you should do. Contact your insurer and notify them about the situation. Maybe your insurer might not be effected by your unoccupied status, but they probably will. If you are effected your agent will adjust your policy to one that covers vacant properties. If you know the length of time it will be vacant you can just purchase one that will cover that time frame. You'll probably be paying a higher premium but it's better than being on the hook for repairs or replacing your home. Maybe your insurer doesn't have policies for vacant homes so be ready to look at other companies that will. An independent insurance agent will be able to get a policy for you from a broad range of company's, so check them out. 


What if your house is rented? 
If you are able to rent your home you'll be able to get coverage to also cover the mortgage payment in case it unoccupied during the rebuilding process. Don't forget insurers consider a rented home a higher risk because renters have less interest in caring for the home. So what your getting is a landlord policy for your home and be sure your tenants have renters insurance for the contents of the home. Renters insurance is not very expensive, it usually around $150 to $200 per year. 
 
While we are at it, you also must have an increase in liability coverage in case your sued by your tenant. Whether inside or outside you can be held liable. 
 
After being a landlord for almost 30 years, running and maintaining apartments, a fire or someone getting hurt is possible, but rare. Protect yourself, get proper insurance.