Find and Retain Great Tenants!
You want reliable, long-term tenants that pay their rent on time and take care of your property. Securing responsible tenants will significantly reduce the financial risks associated with investment property and make it less likely that you will have to endure the time-consuming and potentially costly task of replacing undesirable tenants.
Because of this, it is important not to skimp on advertising, and to make sure your listing is disseminated as widely as possible. You can make sure the right kind of tenants apply by ensuring the rental price is in line with similar properties in your area. This is another area where the benefit of a good property manager becomes obvious. Less reliable tenants will be filtered by the thorough vetting process conducted by the best property managers.
Once you’ve found good tenants, you need to keep them; you don’t want your property to sit empty for long periods or risk taking on tenants who are less responsible. As an experienced landlord, you don’t want to pay more than you have to for the costs of advertising or vetting.
Quality tenants will expect your property to be well maintained, so ensure you have a sound budget for maintenance and repair. Remember that a good tenant/landlord relationship goes some way to retaining tenants, so keep the lines of communications open and consider your tenant’s requests.
Landlord Insurance – why it’s a MUST HAVE
Although your property might be covered with building and contents insurance this does not cover you for tenant related damages and defaults.
We highly recommend taking out Landlord insurance as this can cover you in those unfortunate situations where there is a possibility of significant loss to you as an Investor.
WHAT DOES IT COVER?
Landlord insurance covers a range of situations depending on the level of cover taken out, we have listed below the four most common Landlord insurance claims.1.
1 Loss of rental income
Even the best tenants can sometimes experience sudden and unexpected financial difficulties, leaving them unable to pay the rent for a period of time. Examples of hardship could include the tenant losing their job, or being diagnosed with a serious illness. This can leave uninsured landlords out of pocket and potentially unable to service the loan on their investment property. Collecting arrears can be a very drawn out and expensive process.
A landlord insurance policy can cover you for a range of rent loss circumstances, such as when the tenant’s lease has been terminated by court order following failure to pay rent, the tenant absconds, tenant hardship or sole tenant death. It’s important to be aware that the bond may not cover all incurred losses, and that a specialist landlord insurance policy can help protect against financial loss.
2 Malicious and accidental damage
Damage to property can leave landlords with large repair bills and significant replacement costs. This is the second most common landlord insurance claim.
Malicious damage to your property, either by the tenant, their family or friends, is damage motivated by malice, vindictiveness or spite. Examples of malicious damage can include holes kicked into doors and walls, slashed curtains and smashed windows.
3 Water damage
Water damage to the contents of a rental property is also a common insurance claim. In some cases, it may be caused by the tenant or faulty appliances and fittings (e.g. leaks from a washing machine or dishwasher) or by problems relating to the property (such as a burst pipe or a leaking sink).
Many standard building and contents policies exclude water damage due to accidents caused by the tenant, or limit cover to the contents, not the building, so it’s important to have landlord insurance to cover as many contingencies as possible.
4 The death of a tenant
The death of a tenant is tragic and, unfortunately, not all that uncommon. Landlords will need to adopt a compassionate approach when dealing with the tenant’s family and friends, and also cooperate with the police. They will also ensure the tenant’s belongings are taken care of, the property is cleaned, and all appropriate paperwork is obtained.
Where the tenant is the sole person named on the lease, you may be covered for the loss of rent incurred as a result of the tenant’s passing.
Landlord insurance provides investors with financial protection for a range of situations relating to property ownership and should be seriously considered by every investor
Speak to your Property Manager today about what your options are with taking out Landlord Insurance.