Just Bought Apartment - Do I Need Insurance and Should I Self Manage?

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  bohn on 16/05/2020 - 11:25

  +2

  Building insurance will be including in the owners corp. fees.
  Landlord insurance is meant to cover things like damage by tenants/non-payment of rent etc (over and above the bond) and so on.

  Managing the properties yourself is okay if you know what you are doing. You need to be aware of the Act though. Landlords that don't know what they are doing are annoying for tenants. You need to be contactable for emergencies - if you go away, you need to give them the contact number of someone else who is available. If there is an emergency, eg, no hot water, leaks, etc etc, if they cannot get in contact with you they can spend up to a certain amount (used to be $1000 in Vic) and you need to reimburse them.

  • 

    AdosHouse on 16/05/2020 - 12:16

    +1

    Now if only we could get REA to know the rules and responsibilities of their job.

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  MrHyde on 16/05/2020 - 11:55

  Like mentioned by bohn, self-management is a perfectly valid strategy. Few things to keep in mind when doing so.

  1) Ensure you know the laws inside out… how to register the bond; what the rules are around evictions, notices, etc; what to have in a rental agreement, etc.

  2) Need to be available to be contacted at all hours for emergencies - email alone is not sufficient.

  3) Understand and know the processes with VCAT or your state's equivalent.

  Also, I would recommend land insurance is that covers damages and non-payment of rent by tenants. However, read the PDS carefully; not all insurances cover self-managed properties.

• 

  Ocker on 16/05/2020 - 12:26

  +2

  If you are looking to rent out at about 10% the market rate then just use an agent and get the market rate - you would still be in front.
  Using an agent does not preclude you from engaging your own tradies for repairs.

  • 

    bohn on 16/05/2020 - 12:45

    +1

    If you are looking to rent out at about 10% the market rate then just use an agent and get the market rate - you would still be in front.

    True, you can often negotiate 5%+gst.

    Using an agent does not preclude you from engaging your own tradies for repairs.

    Definitely. You can list that certain tradespeople must be used on certain jobs.

• 

  corky on 16/05/2020 - 13:38

  Many companies are not offering landlord insurance at the moment because of covid19

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  pegaxs on 16/05/2020 - 14:30

  Do I Need Insurance

  Nope. You just come here and pose the questions when something goes pear shaped… OzInsurance… We've got you covered… (*Pop-corn optional)

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  Traveller107 on 16/05/2020 - 16:14

  I've self managed properties before and I've used property managers.

  Self managing was a LOT easier and hassle free than having to chase up bloody property managers at all times and pushing them to keep on top of things. Also it's a high turnover job so they were constantly changing. Property managers are usually some of the most incompetent people you'll ever come across.

  But now I have had to revert to using a property manager as I moved interstate and it's near impossible to self manage being in a different state. I am still using my own team of licensed tradies for maintenance and not the inflated agent recommended ones.

  Also make sure whichever way you go you get landlord insurance.

• 

  Kman1311 on 27/05/2020 - 04:37

  Don't self manage?

  Many if not all landlord insurers will require the use of a qualified agent.
  Tenancy laws are complex and more so every year. One mistake can affect the ability to evict.
  Their ability to background check
  They do regular inspections.
  How you going to handle the sob story on the phone and "can they pay next week…"
  Rent at $367.50 and get a manager instead of $350 and DIY

  Yes, can be some bad managers out there; however, rental rolls have become very valuable and essential as steady income in the last few years. Hence, most agencies now treat them with respect and go to great effort to do an excellent job for the landlord.

  Plus every old guy that I have met that tells me how clever they are as they have never paid an agent fee on his properties for the last ten years, when I ask what current rental returns on their properties, usually they haven't put the rent up for the previous 10 years.haha

  I have many properties and on occasion, self-managed…commercial maybe but nothing could sway me to self manage residential.
  I hope my experiences/comments are useful. And good luck, either way, you go, mate.

  Ps
  I suggest landlord insurance
  building should be covered in your body corporates,
  You do need to insure fixtures/fittings. I.e. carpets, window coverings, paint internal and can be some "grey area" dishwashers and similar. Look into your specific situation; I'm just generalising.