The possibility of tenants leaving a property prior to paying their outstanding rent is increasing as economic hardship is on the increase.
Can you imagine if the tenant you are renting your property to suddenly died and was not found for 6-8 weeks? Apart from the obvious emotional and moral concerned, the hard facts are, you as a landlord will miss out on a number of weeks rent.
Often your mortgage payments are reliant upon your rental payments coming in on time. Some real estate agents do not contact you immediately if there is a problem with the rent, hoping to resolve the problem without involving you.
By law in Australia, property managers are not allowed to enter a rented premises without giving the proper notice to the tenant and having permission to enter. If a property looks like there is a tenant living there because there is washing on a clothes line, toys outside, or dishes on a sink, you are only able to enter if you firmly believe the tenant has left.
The role of a property manager is to mitigate the losses of a landlord to the best of their ability. However, sometimes a property manager’s hands are tied because of the laws they must follow.
Landlord insurance will cover the loss of rent should a tenant vacate without notification (or, as mentioned, the tenant dies). Landlord insurance will also cover any damage that may be done by the tenant not covered by the monies deposited with the Rental Bond Board.
Be careful when buying landlord insurance. Some policies cover damage done to a property by a tenant, but not all cover loss of rental income.
Belts are tightening everywhere, but don’t let a small insurance payment be the “saving” that ends up costing you.
Marquette Turner Luxury Homes on MarquetteTurner.com
DISCLAIMER: This article is intended to provide general knowledge, and is no substitute to specific financial advice.