I am looking at passing my properties on to a property manager and need to identify a reliable manager in Perth.
Plus can you advise on the pros and cons of landlords insurnce, worth the money? Are certain policies better than others.
Cheers Mark
Hi Mark,
I have not spent a lot of time investigating landlord’s insurance, however I have an understanding that may help you.
A landlord’s insurance policy covers tenancy risk – usually both from a income and potential physical damage perspective.
The cost of a policy varies with perceived risk.
Personally, unless I know that I’m dealing with a risky tenant, I will not take out landlord’s insurance. I see it as insurance for a risk I already mitigate by carefully pre-screening my tenants and also constantly managing my investment.
Whether or not insurance is right for you depends on your perceived level of risk and how active you are with your investment.
Cheers,
Steve McKnight
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Mark
I have a different viewpoint to Steve’s – I wouldn’t be without landlord’s insurance!! Perhaps further down the track when I have heaps of passive income coming in it won’t be so important, but right now losing a few thousand is more than my cashflow can handle….
I’ve had 3 claims on insurance, none of the “tenant from hell” trashing the place types of claims, my property managers do a much better job of screening potential tenants than that!!
But one was where a couple split up, the lady remained and went a bit loopy, seemed to think she could stay for free. Another was younger friends sharing, one fell in love and decided to follow her man overseas, remaining girl couldn’t find another person that she liked to share and moved on breaking the lease. Third one was a father and son sharing, son moved interstate, father lost job….
In the end, Steve’s right, it’s all about your comfort factor. None of these were big claims (2 different properties by the way!) but 3 chunks of a couple of thousand dollars would have severely dented my “sleep at night” factor.
Also, and probably most important, I think one of the MAIN reasons to have landlord’s insurance is for public liability cover. This may not matter so much if you have a house with building insurance, but if you have a unit under a body corporate structure, you DEFINITELY should have your own public liability cover, as it probably won’t be covered by the body corporate’s insurance.Keep smiling
Felicity
Thankyou
Two different viewpoints.
Yes we take out insurance to guard against the unforseen. Due diligence does so much but things happen in peoples lives which affects their ability to pay rent. Then again, we pay agents to keep on top of things too.
Thanks for your replies.
Mark [8D]
Hi Mike,
From an ex-tenant viewpoint, we found Ray White in Mirrabooka very good, fair and easy to deal with. They also conducted solid inspections like clockwork. Might be worth checking out, especially the asian lady who is the supervisor there (sorry, I can’t remember her name)…Diem something, I think.
Hope that helps.
Kindest Regards
Jason S
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