Dear Fellow Property Investor,
Check out this latest video that I recently recorded with Cameron Fisher from Changing Places Real Estate. Here are some of the main points covered;
IN THESE TIMES – TWO KEY MUST HAVES
1) Quality tenants are paramount:
- Long term tenants save you thousands $$$
- They care for your property – treat it as their own
- Tend to have stable incomes
- Less demanding
- Do what it takes to keep them
2) An agent who has your back:
- When the going gets tough look to experience
- Does the property manager own investment properties?
- Number of properties managed is critical
- Can they sell?
- Available for viewings – Sundays
- Shouldn’t be fees over service
THE RENT MUST COME IN
- Government ban on tenant evictions for up to 6 months
- Doesn’t allow for tenants to walk away from their rent obligations
- Do I reduce the rent? – impact on landlord’s insurance and any government relief
- Wait for Government response on residential rents
- What we see from the announcement on commercial leases
- What will the bond cover?
- Can you maintain a rent deduction for 3, 6 or 9 months?
- Rental relief in return for a longer lease – pay back over longer period
- Deal with rental arrears promptly and appropriately
- Tenants vacating due to loss of jobs – point out options available to them
- Tenants leaving to move in with parents or friends
- Inspections limited
- Supply – Airbnb banned in NSW
LANDLORD’S INSURANCE – Q&A
Q. Am I covered and what procedures need to be followed?
A. Check your policy and the fine print.
AON Landlord Insurance policy on policies taken out prior to Friday 3rd April 2020.
Q. What occurs if following unemployment due to COVID-19, a tenant wants to break their lease due to financial hardship?
A. Coverage may be available under the rent default section based on hardship, but the normal rules of termination will apply subject to the policy terms and conditions and coverage limits.
Q. Can rent default be claimed if the tenant in unable to pay rent due to COVID-19?
A. Yes, this is claimable under the rent default section of the policy. Please refer to the Landlord Insurance PDS.
Q. Can shortfall be claimed in the landlord and their tenant mutually agree to a reduction in the weekly rental payments?
A. No, the difference in weekly rent is not claimable as this is a mutual agreement between the landlord and tenant.
Q. Can rent default be claimed if the landlord and their tenant mutually agree upon a suspension of their rental payments?
A. No, as this is a mutual agreement between the landlord and the tenant.
- Spot problems before they occur
- On hold
- Communication with tenants is vital
- Still need to be aware of maintenance issues
And much, much more…