Hi All,
When our last tenants were evicted the agent managed to get the bond back plus some money from the tenants to cover a part of the cleaning/repairing bills. We had to pay the rest and had no rent income for 2 months. The tenants signed a 6 months lease and stayed on after the end of the lease so we was told by CGU that we could not claim for rent defaults in this case. We could not claim for cleaning/repairing either. My questions are :
(1) Should we insist to renew the lease and face a possibility of the tenants may leave? (If they agree to sign up another lease we have to pay the agent 1/2 week rent).
(2) We pay around $900/year for building ($250K), home contents ($8K for carpets & blinds) and landlord insurance (for $380/wk rent). If we take out home contents ($8K) we would pay almost $200 less. Is it worth to pay home contains insurance for carpet & blinds only?
(3) Is there any point to pay for Landlord insurance in our case?
(4) Is there any better insurer out there?Will appreciate your advice.
Regards
Huey
G’day Huey…
It’s been a while… but check if Sun Alliance & QBE still offer policies.
Congratulations Huey…You are the Official Commitee Organiser for my Vietnam Motor BikeRide.
Bill xxx
Bill O’Mara
Real Estate,Mortgages,Share Market Strategies.
[email protected]Huey doesn’t the lease become a continuing instead of fixed term as the tenants stayed on past the fixed time (and paid atleast once after the fixed term ended??), I don’t know if the rules differ that much by state, but the laws in nsw state that all lease conditions and rights continue with the lease after the fixed period, so why wouldn’t CGU regonise this as a continuing lease??
scamp
huey,
I am only paying house insurance and landlords insurance, which includes rent cover etc for 306 a year. try this web page.
http://www.rentcover.com.au/
you can call them if you like, i found them very reasonable.
cheers
shaun
huey,
I am only paying house insurance and landlords insurance, which includes rent cover etc for 306 a year. try this web page.
http://www.rentcover.com.au/
you can call them if you like, i found them very reasonable.
cheers
shaun
We recommend building insurance incuding contents public liability and loss of rent. many investrs forget the loss of rent cover.
We had one client who had a fire and it took a few months to assess the damage, get permits and rebuild. In the meantime no tenants = no rent, but the mortgage must stil be paid.We also recommend landlords insurance and Rentcover as suggested by Shaun is a great company. ANother company to consider that gives a better policy for slightly less is Terri Sheerer Insurance
Michael Yardney
Metropole Properties
http://www.metropole.com.auThanks All for your advice & info.
For the peace of mind I tend to pay for every types of insurance that I know of but only left with disappointment when something bad happened and we couldn’t claim anything. I will find out more about other Insurers to compare. CBA have their own Ins company now.
Hi Scamp, I think that is the case but the way they phrase their policies we can hardly claim anything.
Regards
Huey
PS: Thanks Bill, I will help but sorry I can’t take that position because I don’t know to. Last time when I had to raise money for my father to rebuild a school I ended up with almost a half $ from my own pocket.
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