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Do you have an investment property? Are you insured?

Oktay Sengoz

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25/10/2022

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1 min read

Buying an investment property requires risk, courage and parting with your hard-earned money. The main objective of purchasing an investment property is to make money, either from the capital growth or from the regular rental income.

Tenants, on the other hand, may not see your property in the same light as you do. Some tenants do not treat your property they way you would necessarily like them to.

We hear many horror stories about tenants damaging investment properties. It is not uncommon that tenants will either leave behind rubbish or leave the property in an unpleasant state. The most common issues are usually damage to the walls, appliances left in non-working order and loads of rubbish left behind.

How do you avoid this happening to your investment property?

Engage an excellent agent

The property manager and the agency play a big part in how your property is treated by any tenant. Usually, a good agent will have a good judge of character before approving the tenants. This saves you and the agent money and time. A good agent will pick up early signs of adverse tenant behaviour.

Have necessary insurance in place

Landlord Insurance, as the name suggests, protects the landlord for many things relating to their investment property. The insurance covers things such as tenants not paying rent, damages to the property, loss of rent caused by damage or natural disaster. Usually, landlord insurance is an addition to the building insurance you may already hold, and the premium is tax-deductible.

Regular inspections

A good property manager will inspect your property regularly to ensure the property is kept in order. The regular inspections will also allow the agent to pick up on any clues if the tenants are likely to be a nuisance.

Like anything, a successful relationship is a two-way street, if you look after your tenant, i.e. responding to any concerns they have or fix things around the house, then your tenant will likely respect your property.

Talk to us today to see how we can protect your property.

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