How to Reduce Your Risk

How to Reduce Your Investment’s Risk

How to reduce the risk of an investment property:

These days unfortunately, litigation is an all too familiar term for many people. We read about it in the newspaper, hear about it on the news and see it on current affairs TV programs. We have become desensitised to the word ‘sue’ which used to be just a name, but now, it is a whole lot more than that!

Avoiding litigation and minimising risk is everyone’s business. In your rental property, there are some key areas of risk we need to be aware of, and take the necessary steps to reduce them. Here are some areas to consider:

Smoke Alarms – ensure that the required number of hard-wired smoke alarms are installed. They also need to be regularly checked by professional smoke alarm technicians.

Tripping Hazards – identify uneven or slippery surfaces and steps that could cause someone to trip and injure themselves. Besides the genuine risk of harm, there are people (a minority) who see this as an opportunity to make some money via litigation. Always attend to potential tripping hazards.

Repairs – always ensure that the property is in a good state of repair, attending to repairs quickly thereby reducing any risk of injury to tenants and their visitors.

Safety Switches (RCDs) – ensure that safety switches are installed on both the lighting and power circuits of your property as per current legislation standards, to protect tenants and their visitors from injury should an electrical fault or surge occur.

Using only Qualified Tradespeople – landlords who do their own repairs run the risk of expensive litigation while trying to save a few dollars! Doing repair work that a qualified tradesperson should do is simply asking for trouble, especially if something should go wrong. Liability insurance connected to your building insurance may also be affected in this case, so it makes sense to leave it to those who have the qualifications and are insured to do such work.

Thanks for taking the time to read this report. We do hope you consider using Total Care Property Management when it comes to selecting your next property manager.

If you would like to know more or would like to speak to us about managing your property, please give us a call to arrange an appointment on 08 9444 6706.