With the Australian economy in full swing, many people are once again taking a huge leap into real estate investment. While the idea of investing in a tangible asset delivers astounding advantages like passive income, appreciation, leverage, and tax benefits, it also carries certain drawbacks. At some point, certain issues on liability, natural and man-made disaster risks, bad tenants, unexpected expenses and prolonged vacancy, may crop up leaving you with the responsibility. But all these issues can actually be addressed by choosing the right rental property insurance. On how to choose the best among the hundreds of accredited Australian insurance agencies, here are some noteworthy tips for new landlords.
- Always have a goal in mind and create rational expectations. Your goal should be focused on generating a positive cash flow out of your rental property investment with the expectation of growing in the years to come. Raising your expectations too high may only push you to jack-up rent leading to tenancy issues and concerns. With such risks in mind, it is also fitting to find an insurer which aligns to your goals and expectations.
- Have your property evaluated by a reliable professional assessor. Having your property inspected will give you a clearer idea on what risks and issues to expect. This will give you enough voice during negotiations.
- Find a trustworthy and efficient third-party property insurance agency. Some people in their haste tend to favour banking institutions insurance add-ons. While this may seem less costly, certain limitations can be devastating when making claims.
- Always keep your lease agreement legal. Read the fine print on a lease agreement with the aid of an lawyer. Make sure you read and understand the fine print. Failing to do so will not only put you in a precarious situation, it may also put you at the mercy of rental property insurance companies due to the high risks involved.
- Be informed of new legislation or updates on rental property insurance. You cannot claim ignorance should something untoward happen and it’s no longer subject to your claims. Keep yourself protected by finding an insurer who delivers timely reports on various insurance updates or new legislation taking place.
- Consider calling trusted references. You can start with a family member or close family friend who also has rental property investments. If you have plenty of time to spare for meetings, join a local landlord association. Feel free to consult with a trusted lawyer too. Make good use of your network of connections to find no-nonsense recommendations for a reliable insurer.
- Of course, it is essential to find the right type of insurance for your rental property. As an owner, do take note the risks and hazards in your property and have them covered. There is no such thing as “generic” rental property insurance. Choose one that allows you to tailor-fit coverage in accordance to your unique needs.
As a new landlord, it is imperative to manage the risks involved in running a rental investment. Keeping your building and its contents safe is not the end-all game in a wide rental property insurance arena. When done accordingly, you can guarantee protection not just for your property but for you as a person and as a landlord as well.
If you want a risk-averse rental property insurance? Schedule a consultation with Landlord Insurance HQ ASAP! We can assist you in creating a fully tailored insurance portfolio to satisfy your requirements. Request for a quote online or call us on 1300 815 344 now.