5.
OCCUPANCY AND TENANT PROFILE
Insurance carriers also consider how a property is occupied, and the types of tenants in your buildings.
FACTORS UNDERWRITERS WILL REVIEW INCLUDE:
• Student housing exposure • Short-term rental activity
• Mixed-use operations
• Occupancy rates • Tenant turnover trends
Stable occupancy and properties that are managed by a property manager will create a more favorable underwriting profile. For mixed-use properties, the types of tenants also matter. Higher risk tenants include restaurants that use deep fryers, serve alcohol, are open late, and offer live entertainment. Other tenants that underwriters deem as higher risk include vape shops, tattoo parlors, religious organizations, and childcare centers.
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