In part 1, we lent our expertise from years as property managers in Perth to give some of the basics of what you need to know if you want to rent investment property in Perth.
It was taken from a report we did last year. For the full report, visit this link: . Here is the second part of the series.
Insurance
Contents Insurance
Most landlords don’t think they have any contents to insure, but this will insure the curtains, light fittings, floor coverings, and any contents not covered by the building policy.
Landlord Protection Insurance
It doesn’t sound necessary, but you cannot do without landlord protection insurance. It is just too risky. Most tenants come and go without incident, but there are always “problem tenants” who need to be evicted. If they become vindictive, they can vandalise and destroy much of your house.
In addition, there can be accidental damage. For an entire year of protection, it usually costs less than the equivalent of a week’s rent. Better yet, it is tax deductible.
Property Condition Report
The importance of a property condition report (PCR) cannot be overstated. Tenants will damage property, whether intentionally, out of neglect, or just by accident. You have to be able to document what condition the property was in before tenants move in, or you could be financially responsible for all of the damages yourself.
The PCR describes the condition of the property before the tenants move in. It is comprehensive and thorough, and covers every room of the house. You must itemise every mark, scratch, and imperfection in great detail.
The advent of the digital age has made it a lot easier to do this. You can take digital photos of every square cm of the house. Photos are especially effective for the garden and other outdoor areas. The PCR must be signed by both the landlord and the tenant.
When you hand over the keys, you also give the tenant a copy of the PCR. They have seven days to make any additions. The PCR is extremely important; if you fail to execute a PCR, it could cost you thousands of dollars.
Call 1300 472 427 and ask Denise for more information or post a question below now.
Read an article on: “The Basics You Need to Know About Being a Perth Landlord (Part 2)“
