THERE’S INSURANCE AND THERE’S INSURANCE

 

 

 

As a Landlord you should always ensure that your building an contents are covered for an            unexpected event. Loss of rent should certainly be viewed in the same category. While we have   rarely had to make claims for our landlords using this form of cover, when the situation has arisen the advantages of having this type of insurance certainly outweigh the negatives.  Situations can arise where a landlord could be out of pocket as their insurance would not cover events where a tenant has absconded or had to be evicted by order from a Magistrate.  In these instances the bond will only go so far towards repairs and maintenance and recovery of any rent owed.  (Check your policies -Some Insurers will pay out your losses for day 1, others require a loss of four weeks rent before payments are made)   The benefit of a Landlord’s insurance policy is that repairs, maintenance and re-leasing costs can be       recovered to the limit of the bond, then an        insurance claim can cover any loss of rent which could range from 6 to 52 weeks depending on the type of policy and the reasons why the property is vacant.  A good landlord’s policy should cover such items as:

 

· Loss of Rent

· Landlord Contents (carpets, curtains etc.)

· Damages—malicious and accidental

· Legal Costs (Court attendance—Bailiff)

 

Being able to make a claim with a landlord’s policy is dependent on your property management company following the correct procedures as soon as the tenant is in arrears. Appropriate steps must be taken to recover the loss of funds even to the stage of issuing a Breach Notice and following up with Termination if applicable.  Your insurance company will be looking for gaps in the time line.  Having your property managed by a professional property management company such as V L  Property Partners is a benefit to you.  If you have any queries about your insurance cover we     recommend you speak directly to your Insurers to clarify any restrictions that they may have in place.  If you don’t have a landlords policy speak to your property manager today.

 

VALUE ADDED -

SOLAR POWER

 

Having loved living in Perth for the past 25 years, it has been fascinating to watch our beautiful city grow and change, mainly for the good, in so many ways.  Our expectations are rightly high, so much is on offer today, particularly in housing.  When our family arrived in Perth, we rented a 3 bedroom house in Wanneroo, one bathroom, no wardrobes, no air conditioning, and a single carport.  I cant remember what rent we paid then, but I do remember those long hot summers, one of the first things we invested in when we finished building our own home was -  Yes, you got it an Air Conditioner….oh the joy of a good night’s sleep in comfort during the long hot summer months.  It is even hotter these days, with high humidity making life without Air Conditioning very uncomfortable for most people.  The only downside of Air Conditioning is the rising price of energy…..  this won’t change in the future either, prices will only rise, whether there is a Carbon Tax or not.

BUT technology has a solution for us! SOLAR POWER, we are positioned  in one of the best places on Earth to utilize this free energy.  Yes there is an initial outlay, nothing worth having is cheap.  At a recent seminar we gained some very valuable information and are happy to pass this on to you. The Rental Properties of the not too distant future that will command the highest rents and the lowest vacancy rates will be those who offer very reduced or free electricity… what rent could you achieve if your tenants didn’t have electricity bills? ...Please Consider   Val x

While we are talking about     Insurance here, have you checked your Building            Insurance lately — do you have adequate cover?

 

 

 

 

CHANGES TO THE ACT

VL Property      Partners will be attending the “Roll out of amendments to the ACT”      seminar in March.  We will  be sure to keep you all       informed and     ensure our         systems and      procedures         address any changes. We have received calls from Owners who are concerned by  comments in the press, we will take the opportunity to clarify the issues you have raised and, if required, the steps we will take to protect your   interests.

Watch this space…

 

 

 

 

 

   CHIT CHAT NEWSLETTER

             ISSUE FIVE  MARCH 2013

      04007 40225

     www.vlpropertypartners.com.au