Found a tenant? Great.
What sort of tenant are they? You may have a pretty good idea, as you should have done the reference checking as below…
- Employment checks? tick
- Rental history? tick
- Social Media check? tick
- 100 points of ID? tick
- Character check? tick
- Other relevant documents (bank statements, written references, + more) tick
Now, we have seen these scenarios turn out well 97% of the time but sometimes a peculiar or unfortunate scenario happens – domestic violence, malicious damage to fixtures and fittings, defaulting on rent and legal expenses.
So what to do?
- Have you got Landlord insurance (different to Building insurance) or
- Do you not…
Well if the property is managed by an agent, this is looked upon favourably by insurers, ditto if the lease is on a fixed term lease (with some insurers) and if the property is looked after by a reputable insurance company than a excess is paid and the loss is mitigated to a large degree, you move on and feel satisfied that you had the foresight to plan for the worse and hope for the best.
If you do not…you could be up for thousands of dollars in expenses, time lost and a stressful situation to recoup your original position. Not good.
In our next article, we will outline some landlord insurance companies to consider, and importantly what features you should be wary of to ensure when it comes time to claim, the premiums you have been paying have all been worthwhile.
What type of claims have you had?