It’s likely you could be left out of pocket if your investment property is not protected against tenant related risks. The best way to protect yourself, is by taking out Rental Insurance, which can provide cover against theft, malicious damage, loss of income, as well as storms, flood, fire and other natural disasters.
Some examples of what can be covered under a Landlord Insurance policy;
- Loss of income, such as when a tenant vacates with or without giving you the required notice. Also can cover when a tenant who vacates at the end of their lease leaving unpaid rent. If a court releases your tenant from their lease obligation due to to hardship and the bond doesn’t cover the outstanding costs. The property remains tenanted following damage to the building or contents but the tenant doesn’t have full access to the property for a minimum of 7 days.
- Contents, protects furnishings like floating timber floors, blinds, curtains, carpets and light fittings that may be caused by tenant damage, storms or a flood.
- Building, protects your building against: loss or damage caused by tenants (including their pets), their family or their invited guests.
Our property managers in Sydney are starting to see a higher number of tenants wanting to break leases and a slight increase in tenant’s rent been dishonoured. Also the economy is not preforming that well.
We recommend you consider taking out Landlord Insurance as it could potentially save you thousands of dollars. You should obtain a few quotes from insurance companies to compare polices, as they will vary from company to company.