1. Sign a formal rental lease. If they do not pay rent by the 5th, then write a letter of "pay or quit" according to your state law. If still not paying by the date (5 or 7 days after), sue in the small claim court.
2. You buy the landlord policy, but in the lease, specify that the renters need to buy renter's insurance policy. You may want to buy unbrella policy in addition to further protect yourself.
2. You buy the landlord policy, but in the lease, specify that the renters need to buy renter's insurance policy. You may want to buy unbrella policy in addition to further protect yourself.
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