Ensure you never miss an issue of the
real estate business bulletin
Landlords urged to monitor arrears

Landlords urged to monitor arrears

by Staff Reporter 0 comments

Property investors have been reminded not to be complacent when it comes to protecting their income.

Terry Scheer Insurance executive general manager Carolyn Parrella said a tenant who falls beind in their rent can put landlords under significant financial stress.

“Arrears can be a very long and costly process to resolve and may leave landlords significantly out of pocket,” she said.

Ms Parrella said monitoring arrears daily is an important task and investors should be checking their bank accounts the day the rent is due in.

“If your tenant has fallen behind in their rent, the sooner you know about it, the sooner you can attempt to resolve the issue and mitigate any financial loss,” she said.

Ms Parrella said it’s important for investors to be familiar with the termination notice and eviction processes across the various states and territories. This will assist with any loss of income claims, she explained.

“Loss of rental claims on a landlord’s insurance property can be significantly affected if the policyholder has not taken appropriate steps once a tenant has fallen into arrears," she said.

“Make sure you issue the tenant with the correct notices within the specified timeframes. Any delay in sending the notices may result in an invalidated or reduced claim if you can make an insurance claim for loss of rent later on.”

Ms Parella said to minimise risk and ensure your investment property remains profitable, investors should conduct regular inspections, maintain a positive relationship with their tenants and ensure their landlord insurance policy is appropriate to their circumstances.

Landlords urged to monitor arrears
lawyersweekly logo
promoted content
Recommended by Spike Native Network
Listen to other installment of the Real Estate Business Podcast
reb top 100 agents 2017

The REB Top 100 Agents ranking is the foremost ranking of agents in Australia. It has set the bar for excellence in Australian real estate. To be ranked as an REB Top 100 Agent is the standard real estate professionals strive for. See the full 2018 ranking here!

featured podcast

featured podcast
An industry where the resilient succeeds

Tim Heavyside believes that a strong support team and good foundations are paramount to success in the real estate industry, and with regu...

View all podcasts

Would you consider working for Purplebricks or a similar 'DIY' model?

Yes (7.2%)
No (80.9%)
Perhaps - make me an offer (12%)

Total votes: 209
The voting for this poll has ended on: July 13, 2018
Do you have an industry update?