Investing in property can be seen as a relatively safe investment due to the bricks and mortar nature of real estate. If you are a property investor and decided to rent out your property, then landlord insurance coverage can help to reduce the risks associated with owning and renting out your property.
Landlord insurance policies offer insurance protection for property investors and include insurance coverage that is beyond typical home and contents insurance policies.
What risks do Landlords face?
Being a landlord, the risks associated with your property can be categorised into a few key areas:
- Property damage.
- Loss of rent.
- Legal costs associated with recouping lost rent.
- Damage to your property by the tenants that are either malicious or accidental.
- Costs associated with removing rubbish from your property if left behind by tenants.
Did you know there are 2.6m property investors in Australia?
How to protect your property investment and be a good landlord
Maintaining your investment property effectively helps to manage your investment property. In addition, good maintenance can improve the longer-term performance of your investment property and ensure your property can enjoy, market dependent, capital growth over time.
1: Regular maintenance of your investment property:
Investment properties are not simply set and forget assets. Ensuring you maintain a good maintenance scheduled with your investment property will both please tenants and make sure that your property is easier to rent out when looking for new tenants.
2: Ongoing and engaged management
Whether you opt to self manage your investment property or utilise the services of property management or a real estate agency, making sure you are engaged in managing your property can reduce any issues from developing with tenants.
3: Regular investment property inspections
Being an engaged property investor includes undertaking regular property inspections. You will need to coordinate inspections of your property via your real estate agent. Keeping photos taken during inspections is a good way to see the longer-term wear and tear and manage any damage that has been caused by tenants.
How to manage your landlord insurance premiums
Talking with an insurance broker can assist you in understanding the risks associated with being a landlord and connected with your property. Undertake a review of your landlord insurance for your investment properties with a licensed insurance broker.
General Advice Warning: This advice is general and does not take into account your objectives, financial situation or needs. You should consider whether the advice is appropriate for you and your personal circumstances. Before you make any decision about whether to acquire a certain product, you should obtain and read the relevant product disclosure statement.