After all the talk about property investing, you’ve finally decided to jump onto the bandwagon and get a second property, to rent it out. You assume it’s simple right – just put an ad up on a property portal (if it’s on SRX, what are you doing?!) and you’ll find the perfect tenant right away.
Well, it’s time for you to wake up from that dream. Not only will finding a tenant that you are comfortable with takes a while, but you could also potentially get tricked into believing their words and they could be a nightmare tenant.
To prepare you for the rental journey, do be aware of the following potential problems that may arise throughout the tenancy:
Tenants who consistently miss payments
The primary reason for rental is to generate additional income from tenants. However probably the most common problem landlords have to deal with is either late or no payment from tenants. It may be promise after promise that they will transfer you the money in the next few days, or perhaps double the rental the following month. Trust me when I say that’s a huge red flag. Once that happens, be sure to work out a plan with them to ensure you’re always paid on time. If not, be prepared to evict them if this continues over an extended period – which then presents another problem.
Tenants who refuse to leave
Well, some people just don’t get the hint. Despite being served eviction notice, you may have tenants that simply refuse to leave. Or even worse, they become nasty when confronted and may even get physical. Be sure to find out how you can get them out in a legal manner if they still refuse to. Please do not get any gangsters or go through any illegal means to do so as you will likely come out on the losing end.
If you’re lucky enough to get a compliant tenant that’s neat and keeps your house in order throughout their stay, then good on you. However, there have been situations where tenants do mess up the entire unit and there’s even a horrible stench around the house. You should drop-in time to time to ensure the place is well in order and if it’s not, to speak to your tenant to see how the situation can be resolved.
This is probably the worst of it all. Seeing as it’s hard to do an extensive legal check on someone, and they put on the best front when you’re assessing whether there’s a suitable candidate, you may be very unlucky to rent your apartment to someone who is involved in illegal activity, such as using your place as a gambling den or for promiscuous activities.
If you don’t want to be one of those unlucky landlords, there is now have a great solution! The AIG Landlord Insurance is a hassle-free plan that provides you with very comprehensive protection. As part of the coverage benefits of AIG Landlord Insurance, you will be covered for:
- Landlords protected for damage with coverage of up to $50,000 for loss on renovations and up to $50,000 loss on contents
- Landlords protected against loss of rental income with up to $50,000 coverage for lost rent
Another plus point to this is that with this plan, you will be able to waive off the security deposit, which means your property more appealing to potential tenants. Best of all, this is a fee that’s borne by your tenant instead of you – so win-win for all!
For more information, please visit Landlord Insurance.