An Unforeseen Circumstance

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Some time ago our Property Manager discovered that one of our tenants had passed away in their home. While this was a sad circumstance it did prove to come with some unforeseen challenges. The police had to be called, the body removed and specialist cleaners needed to clean the area.

The family of the deceased collected personal belongings, however there were still the remaining goods and furnishings to be disposed of, and the property then needed a thorough second clean.

After a number of weeks the property was finally ready to be advertised. Legislation required that prospective tenants be informed that the previous tenant had passed away in the unit. While people viewing the property said it did not bother them, the applications were not forthcoming for nearly four months!

The costs in preparing the property for a new tenant and the loss of rent for four months could have turned this investment into a disaster for the owner. With no rent coming in, it may not always be possible to keep up with the mortgage repayments while waiting for a suitable tenant. The owner may well have had to sell the property to recover their losses.

Fortunately the owner’s landlord insurance policy meant that rent was covered from the time of the death until a new tenant could be found, in this case four months. On application to the court the tenant’s bond was released to pay the cleanup expenses. In the end the owner was not out of pocket.

This is just one of the unexpected and unforeseeable scenarios which could beset an unwary property investor. We encourage all our clients to invest in landlord protection insurance. It is a small price to pay (around $300.00 a year and it’s tax deductable), for total peace of mind.

In fact we feel so strongly about this that as a special bonus to all our new clients, we offer their first 12 months landlord’s protection insurance policy for free.

If you’d like to find out more about landlord protection insurance go to our page entitled Landlords Insurance FAQ or give us a call today on 08 9444 6706.

About Gai Kroczek

Gai is the Owner/Manager of Total Care Property Management together with Bernie Kroczek of Bernie Kroczek Real Estate. Gai has been in Real Estate for over 20 years and runs a professional Property Management team utilising the latest technology to assist owners in maximising their investment while also assisting tenants.

Gai is also the web designer and maintains all the office technology keeping abreast of all the many changes and implementing them to make sure our owners get the best possible service.

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