What you may not realise is that not only is Landlords Insurance quite specific to property investors, but also that not all policies offer the same benefits because the cover options are so broad.

When you own a rental property, there are a range of things that can impact your ability to keep generating rental income. If you rely on that continued rental income to cover your costs and expenses, it’s critical that you have the right type of coverage to protect your interests.

What to look for in a Landlords Insurance policy

While most tenants are generally respectful of rental properties, there are occasions when things don’t always go your way.

Before you choose a Landlords Insurance policy to protect your investment, take the time to ensure you have the right policy that gives you plenty of cover for a range of situations.

Some of the things to look for in a good Landlords Insurance policy include:

• Accidental loss or damage to contents caused by the tenant
• Malicious damage or theft caused by the tenant
• Loss of rent while the property is uninhabitable
• Damage caused by pets
• Legal liability to protect against the possibility of injury due to landlord’s negligence
• Tax audit
• Prevention of access to the property
• Default of rent.

Other considerations to explore and compare before signing up for a Landlords Insurance policy include:

• What are the excess charges?
• How many weeks’ rent are covered if your tenant defaults or absconds?
• Does the policy cover any legal expenses?
• Have you compared the premiums as well as the summary of benefits?

Landlord’s contents coverage

Always check your policy to ensure any contents that belong to the property are covered adequately. Most landlords automatically assume they don’t need to cover contents, as any furniture within the property belongs to the tenant.

In reality, your property contents also include items such as:

• Carpets
• Curtains
• Internal blinds or window coverings
• Light fittings
• Fixed appliances (such as dishwashers).

Be sure your Landlords Insurance policy covers you for damage or loss of your contents too.

Extras coverage

Damage to the property caused by pets or legal liability cover might be listed as extras, but they’re both valid areas of coverage to include in any Landlords Insurance policy.

Protect your investment

Whether you are reviewing your existing Landlords Insurance policy or taking out cover for the first time, it’s worth shopping around and comparing the premiums and summary of benefits for several policies to find the one that’s right for you.  When it comes to protecting your investment property, doing your due diligence before signing up can save you time, money and heartache down the track.

MORE INFO:
Rosanna Russo
Property Manager
e: rrusso@nieuvision.com.au

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Disclaimer: We recommend that you seek independent financial and taxation advice before acting on any information in our articles and newsletters. They contain general information only and have been prepared without taking into account your personal objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances. Your full financial situation will need to be reviewed prior to acceptance of any offer or product. Interest rates are subject to change without notice. Lenders terms, conditions, fees & charges apply.

The post Importance of Having Good Landlords Insurance appeared first on Nieuvision.

Your rental property is an investment for your financial future which can be positively or negatively affected by numerous important factors including the type of tenants you attract, the maintenance and management of the property, achieving the right rental yield and selecting the right landlord’s insurance.

Finding the right tenant

How do you ensure you get the best tenants for your property each time?  Getting this right is an important aspect of any successful property investment strategy.

As a landlord you may consider tenants who will simply pay the rent on time and look after the property.  Whilst this may seem easy to achieve, being familiar with legislative requirements serves as your best foundation to make it so.

Finding the right tenants with the correct processes in place can make it easier for you to achieve your investment goals.  Unfortunately, there are people who may not fit the ideal description of a model tenant, so rather than risk bad tenants destroying your investment goals, some basic tips for finding the right tenants for your rental property should be considered.

Engage an experienced Property Manager

Having a Property Management Team, dedicated and skilled to work on your behalf is the crucial element in your overall investment strategy.   Effective screening of past rental history, ongoing affordability and discerning information from references is a key element, as is access to listed defaulters databases.  Previous landlords and rental agencies can provide impressive references, so an experienced Property Manager can ask the right questions for you.

Once an application is approved, the legislative requirements surrounding securing the tenancy, making sure all aspects are in place, is paramount to avoiding potential issues through-out the tenancy.

Keep maintenance updated

If there are two similar properties in the same suburb and both are charging the same rent, but your property is poorly maintained compared to the other, good tenants tend to aim at your competitor’s home first.

Keeping you property well maintained, with fixtures, fittings and services in good working order when they move in, as well as presenting a good and clean house goes a long way in attracting the right tenant.  Tenants who will take care of your property want to get the impression that you care for it too.  They get a sense of optimism that any issues will likely be repaired as promptly as possible.

You’ll be able to stand out ahead of the competition, which helps to reduce your vacancy rates, and tenants tend to stay in the property longer, reducing your fees.

Accurate market rental

Always know your market.  Familiarity with rental prices with similar properties in the same suburb is important. Charging too little reduces your profitability, conversely charging too much can make your tenants feel as though they’re being ripped off, which increases the chances of them moving elsewhere, thus increasing your fees.

Your Property Manager can provide you with current comparative market data to ensure your tenants are paying a rental amount that is in line with other tenants in the area.   Using this same market data, your Property Manager can also suggest rent increases when applicable.

Landlord’s insurance

Always remember, your rental property is an investment for your financial future.  Whilst finding the right tenants, and ensuring all systems and processes are in place will facilitate achieving your investment goals, accidents can happen and life circumstances change.  Even the best tenants can fall on hard times.  A good Landlord’s insurance policy will protect you from both accidental damage and unforeseen financial circumstances.

Exploring the differing options and asking the relevant questions of insurance companies may be painstaking, but you’ll be glad you did.

Call Nieuvision’s Property Management Team on 1300 832 554 to ensure your investment property is well maintained and managed.

MORE INFO:
Rosanna Russo
Property Manager
e: rrusso@nieuvision.com.au

– – – – – –

Disclaimer: We recommend that you seek independent financial and taxation advice before acting on any information in our articles and newsletters. They contain general information only and have been prepared without taking into account your personal objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances. Your full financial situation will need to be reviewed prior to acceptance of any offer or product. Interest rates are subject to change without notice. Lenders terms, conditions, fees & charges apply.

The post A Few Tips to Managing Your Investment Property appeared first on Nieuvision.