- persuasionxMember@persuasionxJoin Date: 2004Post Count: 9
Hi we own a small commercial unit in a block of four other units, question is does anybody offer loss or rent cover for this type of investment as i cant seem to find anyone that does, easy to get loss of rent for buisness interuption like the place burns down or something like that, but not straight loss of rent due to tenant leaving. Any help would be very appreiated or just any comments on what sort of insurance policy would be best for this situation, the building itself is insured through the body corp.[goatee]trueblueMember@trueblueJoin Date: 2003Post Count: 142
I’ve checked with my insurance broker. Unfortunately there are no covers for loss of rent for the situations you mentioned.MichaelYardneyParticipant@michaelyardneyJoin Date: 2001Post Count: 616
We cover this situation in our commercial proeperties by always requiringa bank guarantee for at least 6 months rental as a condition of accepting the tenant as a lessee.
The tenant always tries to say no – but we have them in all our commercial properties , even from big and international companies.
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Very good advice Michael. We normally asked for 3 months bond or a personal guarantee. But I like the 6 months bank guarantee better.
trueblueLukeNealeMember@lukenealeJoin Date: 2005Post Count: 28
I have a small commercial place in NZ (student accommodation) and I couldnt get loss of rent insurance except for Fire, Earthquale and the like. Then insurers will almost never insure against loss of tenant, becasue it may be argued that it is due to circumstances which are avoidable, like bad management, or lack of advertising. etc
Hope this helps