Investment real estate is a great way to make long term income. While you need to protect your investment with real estate insurance, here are a few things to know before you break ground on condominium development.
Managing risk is more important than ever. According to hilbgroupfl.com, tenant discrimination, environmental liability and builders-risk are common liabilities developers face. Not to mention that contractual protections have decreased for developers in many states making it easy for a client to sue for economic losses must longer than before.
Include limitations when turning over the development to the HOA or COA such as time limits for construction claims. Provide the HOA with a detailed maintenance manual and require unit owners to obtain an inspection prior to purchase.
As part of your risk management strategy, select condo clients who can provide long-term services for the development. You want people as committed to the design and construction as you are.
Avoid cost recovery issues after the fact by knowing your client’s expectations ahead of time. If you sell a luxury condo with unique amenities, make sure you put the same energy into the design, construction materials, and timeline.
The growth in the economy post-2008 has helped developers expand their residential development dreams. Real estate insurance helps protect those investments against unforeseen liabilities.