How to avoid tenant troubles

Property investors who want to avoid any headaches caused by malicious or careless tenants should take four steps to help them sleep easy at night, according to Terri Scheer Insurance general manager Carolyn Majda.

1. Make your property attractive to good tenants

“A rental property that’s well presented and easy to maintain is more likely to attract good quality tenants,” Majda says.

“Tenants are also more likely to take pride in a well-presented property and treat it as if it’s their own. Nobody wants to live in a house that has shabby carpets, an unruly garden and is in need of repair.”

2. Appoint a property manager

“Property managers have experience in screening prospective tenants and know which questions to ask them,” Majda advises.

“They also have access to databases that list tenants who have defaulted on rental payments, maliciously damaged a property or been evicted.”

3. Inspect the property regularly

“Regular property inspections can help landlords to identify potential issues,” Majda notes.

“If a tenant is causing damage to a property and regular inspections aren’t being held, the damage may go unnoticed and be more costly to fix later on.

“The best way to do this is with the help of a property manager who should conduct an inspection around every three to six months and provide you with a written report.”

4. Obtain landlord insurance

“Tailored landlord insurance provides a safety net for landlords if their tenant does the wrong thing and maliciously damages their property or stops paying the rent,” Majda says.

“Unfortunately even the best tenant can accidentally damage a property or fall behind in their rent. Landlords should choose a comprehensive and secure policy that covers them against malicious and accidental damage as well as loss of rental income if the tenant absconds or leaves a property unable to be re-let while damages are repaired.

“The policy should also provide cover if a court orders a tenant’s eviction or terminates the rental agreement due to tenant hardship.

“An insurance policy that covers these specific risks can assist landlords to safeguard their investment and ensure they continue to receive a steady flow of rental income.”