14 Years of experience has found that the holiday period can cause landlords all manners of headaches. (and many insurance and finance companies agree) Here are some ways you can combat the strain.
From past experience, the higher than average frequency of loss of rent claims is due to two key reasons. Tenants often put gift giving and Christmas spending ahead of paying their rent and utility bills; money is tight and their rental payments fall to the wayside. So always ensure that you are checking that their rent has come in even whilst you try to enjoy the festive season yourself and contact them immediately if it is delayed.
The new school year can also wreak havoc on landlords, with families eager to get close to good schools.From anecdotal evidence, we know that many families break their rental agreement, abscond the property and move to different suburbs for the new school year.
The best way to avoid these issues is to have clear communication between yourself and the tenants and striving to maintain a positive relationship.
Whist this may not stop a tenant vacating, it can mean they’ll provide more notice or be more understanding to your situation, giving the landlord an opportunity to proactively seek a replacement tenant and reduce the amount of time their property is untenanted. And thereby giving you a chance to minimize the arrears.
The study also shows the importance of having appropriate insurance, not all insurance is created equal so it’s important to make sure you’re getting the right product for your purposes. Or at least having a full understanding of what you are and are not covered for.
A specifically designed landlord insurance policy is the first step towards minimising any potential loss in the case of theft from your investment property. Good policies should cover landlords for risks such as abandonment of tenancy and loss of rent.
It pays to remember that if rent arrears are not acted on immediately it may go on for an extended period of time, then it will take a few weeks to get into Tribunal. If a tenant misses a few weeks of rental payments, a landlord can suddenly be out of pocket by several thousands of dollars
Please do not hesitate to contact Sharon on 0273550359 at any time if you would rather enjoy your Festive Season rather than worrying about your investments property