WARNING! this may put you off property investment!!

Hi all,

Thurs morning....4.15am the phone rings.......
On-site managers at block of units in Wagga calling "bad news, someone has torched a unit!"
OK, I'm awake now!!
Apparently some low life has placed what is thought to have been a milkcrate filled with newspaper etc outside the front door of this unit and lit it.
details: No, the tenant wasn't home, Yes the police and fire brigade are on the scene.
Futher questions reveal the tenant was a warder at Junee jail 6 months ago........mmmmmmm.

Next step, ring the insurance broker........this is scary!. His advice is to get down there and assess the damage and estimate what it will cost me to repair the unit. Some months ago he placed a claim where arson was involved and while the claim was eventually paid, the policy was then immediately cancelled!!!.
The reason being the high risk of a repeat occurence.
He did get new cover for this client but at approx double the cost.
So people, it appears i'm insured but one way or the other i'm going to pay for repairs........

Immediate problems: 1: I'm in sydney and flatout running a business 2: I have a boat on the slip costing a motza per day 3: I have a tenant who wants accomodation (and is looking to the landlord for new fridge, microwave, TV, computer, stereo, etc, etc).
The rest of thursday is spent trying to organise business so it won't collapse if i'm not there for a ....few?... days and organising to get boat back in the water (gotta wait for tide, 7.30am fri).
tenant has bunked in with someone else.
Friday: Ok boats on the mooring ($2,000 later). Got 1 appt at 10 am. 11.30AM hit the road.
4PM arrive at Wagga.
Prognosis: Yep, thats one trashed unit!. Cost to get it repaired probably about 12K and at a guess it will take at least a month.
So, have decided to do it myself, at probable material cost only 3K.

Will keep you posted.



rossv.

ps. anyone got any ideas on cleaning soot from walls and ceilings

What awaited me



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the kitchen



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Watto! send me a quote, Quick!!



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Bummer ross, what a mess!
2 things I don't understand:
1. Why are you going to do the work yourself? If you have insurance cover, then it should cover the full cost of repairs, including the labour costs of tradespeople. You shouldn't have to do anything at all, certainly not just to save the insurance company money. I'm not sure, but you may even find it MORE difficult to claim through insurance if you do it yourself, because usually they require a couple of quotes from different tradespeople before they'll approve one to do the work.
2. Why should you replace the tenant's property? They're supposed to carry their own contents insurance, and if they didn't, well, honestly, that's their problem, not yours. Your insurance certainly WON'T cover it (unless it's a very unusual policy!).

Geeze, they've done a good job of it Ross.......lucky you are such a handy kind of guy. I'm sure watto will have no problem fixing the microwave either and at a very cheap price just for you.

Just remember it's all fun, and you love it!!!

Of course, don't forget we will need all the after shots of the reno

Ruby

Hi Ross,

I'm with Lissy here. I don't think you should do the job yourself, this can potentially create other problems.

Tenants have to have their own content insurance. It is not your responsibility. Also, usually, Landlord insurance provides for tenants accomodation when flooding or issues like this happen.

Regards,
James.

Originally posted by rossv

Some months ago he placed a claim where arson was involved and while the claim was eventually paid, the policy was then immediately cancelled!!!.
The reason being the high risk of a repeat occurence.
He did get new cover for this client but at approx double the cost.
So people, it appears i'm insured but one way or the other i'm going to pay for repairs........

Click to expand...

I'd say Ross's reasoning for doing the reno himself is totally insurance based. Yes the insurance company will pay for the renovations, but at what eventual cost to him?? He's one cluey guy....*cough cough*......did I say that??? He will have weighed up all options, and no doubt made the best decision for his situation.

Ruby

Hi Rossv,
sorry to hear of your misfourtune, I had a thought, I dont know the full circumstances of your tenant, but rather than doing the repairs yourself to keep the insurance comp happy, with regard to the tenant and his ocupation being a high risk in the future,
Do you think the Tenant will want to return to the unit, as the bad guys now seem to know where he lives, just a thought,
good luck.
regards Steven.

OK, so, let me get this straight...

Tenant moves in to unit...

Tenant is prison warden... (tough job, but someone's gotta do it, thankfully)

Bad guys find tenant... Bad guys torch unit...

So...

Torching of unit SEEMS to be totally tenant-related. (AS in, not tenant's fault, but, certainly linked to him) and he says YOU have to replace his stuff??????

*cough* I don't think so.

He should have had his own insurance, and if he hasn't then, sorry, but too bad. He can alway sue the bad guy civilly if they find out who did it.

Thanks for the photos Rossy, I take it you will do the kitchen yourself? Just remember, Marble doesn't burn.. lol

(/me has visions of a little unit in wagga with a full marble kitchen)

Good luck with it Rossy.

Just be careful that, as Steven said, now that they know where he lives they don't come back.

Oh, and, Sugar soap cleans soot not too badly.

asy

He should have had his own insurance, and if he hasn't then, sorry, but too bad. He can alway sue the bad guy civilly if they find out who did it.

Click to expand...

He can try, but ex-jailbirds are generally on social security and have more liabilities than assets, if ANY assets. You can't get blood out of a stone.

But, yes, this is all about Ross, and tenants' stuff is tenants' responsibility!

Is he a good tenant? and is he worth keeping at the risk of the place being torched (or worse) again??

HG

Originally posted by rossv


rossv.

ps. anyone got any ideas on cleaning soot from walls and ceilings

Click to expand...

Ross, know the feeling all too well, have had 2 adjoining flats fire damaged to a similar if not worse extent.

I also did the job myself, was years ago in my not so bright years, had no insurance back then.

As for getting soot off walls, it's a real pain, vacuum cleaner working overtime and heaps of chux and buckets of water.
A painter friend of mine advised to use a oil based undercoat and that did the trick. Sealed it back beautifully on the plasterboard that wasn't replaced. Then just went over it with acrylic paint.

Yes, you do wonder if it's all worth it at times like these, but I can assure you it is, just focus on the bigger picture, and I know it's hard sometimes.

regards

It's amazing how well that carton of milk in the kitchen stood up! Maybe you should build the next kitchen out of those.

G'day rossv,

Sorry to see that happen to you......

The microwave looks like it was an el cheapo job.... just saw an add in the target or kmart catalogue for a small dial timer for the grand sum of $ 69.99....

Looks like you have some serious elbow grease to be applied there....

cheers
watto

Hi guys,

thanks for all the support.
So far.....stripped out unit and washed down walls and ceilings, lots of clean water seems to be the trick.
Lounge, kitchen, passage and br1 all sealed.
Have made one blunder....should have chased an electrician friday or sat morning, this is going to delay me a little.
The tenant........ "the whole world owes him something" and everyone else is at fault.......I'm sure you've met the kind before!!
Well, he's succeeded in losing my sympathy........the sheer stupidity of some people never ceases to amaze.
Today.....New entrance door and frame, install kitchen, more setting and painting.
mmmmm.......4.30am........might be pushing my luck with other tenants.....more caffeine 1st......


rossv

I strongly suggest that you do make an insurance claim. It will get you up and running quicker. If you have building insurance you are also entitled to loss of rent that you are missing out on. An insurance company cannot cancel a policy except at renewal and they need reasonable grounds to which you are legally entitled to seek their reason. Insurance Contract Act 1984. Insurers will not generally cancel because of one loss especially when the cause of the fire was not as a result of your wrong doing. (30 years in insurance claims and I have never come across an underwriter doing this)

Rossv,

If you had landlords insurance, you should be covered for the repairs as well as lost rent.

Re the tennant's property, The police will include what was lost in their Arson report and will seek restitution through the criminal courts for him. As previously stated, he should have his own contents insurance.

No doubt the tennant will have some idea of who this vermin was who torched your unit? If so, he will be arrested and charged and return to jail. Problem solved - unless of course he gets into jail and braggs to his mates, they thinks it's funny and want to have a go them selves!!!!!!!!

Best of luck with the cleanup. Sounds like you are making great progess.

BUNDY

Oh Ross, you poor thing! Looks like you're getting on top of it all there. What a bummer for something like this to happen in a newly acquired IP as well. I can merely offer you my sympathies...

This will be an interesting experiment for you insurance-wise. When it's all over and the soot has settled, be sure to keep us informed of the outcome. Out of interest, who are you insured with for landlords?

Hi Ross

What can I say

This sort of thing is just devastating, I hope everything gets fixed up as quickly as possible and you can get back to your business. We miss you in the chat room ( this is where you usualy say "rossv throws up" ) and hope for your quick return to IP chat with the details

Good Luck

Regards

Investor

Ross,

Quick buy that melted microwave oven!

it's a work of art & will easily next you hundreds of thousands at Sotherby's!


Bad luck on the unit - if it is tenant related, I suggest you ask the tenant to leave - for his own safety (and your wallet's)

The bad dude probably has friends who also don't like your tenant & now know where he lives.

Good luck on the renovation - hopefully you can rent it out for more.

Cheers,

Aceyducey