Property Investment

Investments are on everyone’s mind at the moment and this week, we discuss something that is often overlooked.

For every property investor, Landlord Insurance is essential. Buying an investment property is usually part of a wealth building strategy and being the landlord, you would not want to see that disappear. Landlord’s insurance is important to help protect you from certain aspects of owning an investment property including:

  • Rent default – loss of rent
  • Legal liability
  • Theft and malicious damage by tenants or their guests
  • Accidental loss of damage
  • The extra costs of rebuilding such as architects fees and removal of debris

It is important to have proper protection for not only the investment property but also the belongings you provide to your tenants. The Landlord insurance is generally a relatively small cost but could save you thousands of dollars should something go wrong.

So why is it that many landlords in Australia don’t protect themselves accordingly? If you don’t organise it yourself, your property manager should make you aware of it and even offer to organise it for you. The two main reasons that a landlord should take out a landlord insurance policy in Australia is to protect them from rent default and theft & malicious damage by tenants. There seems to a be a reliance on most tenants doing the right thing, however sometimes it may not be the tenant but rather one of their guests.


Also make sure you have adequate public liability insureance. Remember is someone injures themselves on your property you are liable. Many landlords who own units or townhouses within community titles believe they are covered under the Body Corporate. NB: Body Corporate covers you in a public area. If someone breaks a leg inside your unit/townhouse you are liable – check your cover.

The rule of thumb with risk is to insure what you can’t afford to lose. So, be sure you are protected and take out the necessary landlord’s insurance. Failure for a tenant to pay rent for a few months could see significant financial stress on your circumstances which could ultimately lead to forced asset sales.

Seeking cover for buildings and contents, loss of rent and legal liability needs to be at the top of your list of priorities and so does understanding the policy terms and conditions that are set out in the policy because the types of loss for which you are covered are defined clearly and it’s only those losses that are covered.

On Saturday 8th of August I was lucky enough to be awarded the number one metropolitan Sales Person within the Madeleine Hicks Real Estate Franchise for 2008/2009 for New South Wales and Queensland.  Its the second year I have achieved this.

With this in mind you’d think that I’d know my stuff.  Yeah! I’m the expert!  No way. With the goal posts moving every day I am reminded how much this industry is motivated by emotions rather than pure business rules of supply and demand.

A Day is a Long Time in Real Estate

“Madeleine the property is over priced” … “I want 4 bed 2 bath 2 car etc and I don’t want to pay any more than $$$ and I want it now!” …  “Madeleine my property is worth $$$$ because I’ve loved it for so many years and lots of sweat and tears went into this home”…  In the middle of all this emotion is reality and my day consists of wading through the quagmire and finding this elusive reality.

Today I have a truck load of quagmire to get through!!! Wish me luck.

Below are some helpful hints on everything you need to do berfore you move:

  • Plan your move from as early as possible. Consider also that the first and last days of the month are extra busy.
  • Consider having a garage sale to remove unwanted and unnecessary items.
  • Begin using up large supplies of frozen and canned goods
  • Have you moving company conduct a household goods survey in orcder to provide you with a written estimate as to cost.
  • Pre-arrange for the telephone and utilities to be connected at your new home for the day you move in. .
  • Have rugs and drapes that you are taking cleaned and arrange any alterations that may be required for them to fit into your new home. If you intend on doing your own packing, start collecting suitable containers around four to six weeks prior to your moving date. You can purchase specialised containers from most moving companies.
  • A Guide to Surviving Your Move
  • It can also be handy to collect packing materials such as: tissue paper, paper towels, newspaper, tape, scissors or a sharp knife, felt marker, notebook and pencil.
  • Set goals and deadlines to ensure that all packing is completed by moving day. You may want to pack one room per week. Attach a list of contents to each carton.
  • Pack a box for instant needs on arrival. Such as; cleaning equipment, dish towel, crockery, cutlery, coffee and tea, desired food and drinks, saucepans, toilet paper, toiletries, garbage bags, torch, tool kit.
  • Be on hand when the movers arrive or arrange for somebody to be there on your behalf. They will need to direct the movers and may need to sign documents on you behalf pertaining to costs.
  • When you arrive at the new house, ensure that the house is ready for occupancy prior to the removal van arriving.
  • Check all goods ask they are unloaded.