Despite the best screening methods by your property manager things can still go wrong when it comes to tenants and investment properties.
We recently had an experience with tenants and an investment property that left one person in custody and the owner facing a repair bill in the thousands due to a lack of appropriate landlord insurance. The tenants passed the property management screening tests with flying colours. They both were employed in good paying jobs, were well spoken and presented well. Unfortunately, they became involved with drugs and things spiraled out of control very quickly leading to broken doors, holes in walls, light fixtures being ripped out, smashed shower screens and loss of rent.
Some owners have the opinion that insurance isn’t necessary because the tenants can be taken to QCAT (Queensland Civil and Administrative Tribunal) but even if the owner is awarded damages it is often difficult to get the tenants to pay due to their financial circumstances.
As a landlord you need to ensure that your investments are appropriately protected for unexpected disasters such as these.
For around a dollar a day you can get good levels of protection. Coverage can include tenant related loss of rent due to hardship, absconding, defaulting and tenant death; tenant related damage including accidental, malicious and deliberate; re-letting expenses, damage from scorching, change of locks, pet damage and legal liability to name a few.
There is often the tendency for owners of investment properties to overlook landlord insurance because they think they are covered under their home insurance policy. It is important double check your policy to ensure you are covered.