Barclay Mis Protect and Collect policy

[beachside]

Hi

I have just received a letter from my PM which would appear to be identical to one mentioned httpwww.somersoft.com/forums/showthread.php?t=58593

I am having trouble attaching a copy of my letter - attachment icon does not seem to attach.

At first I saw red and thought agent was trying to get us to pay extra for services normally carried out by PM. Barclay's literature states agent does not receive commission - which brings me back to first thought.

I know I am covered for much of what is covered by Barclay Mis Protect and Collect policy in my landlords policy. Barcalys policy coverage http://www.protectandcollect.com.au/protect_and_collect_terms_of%20aggreement.php

Although I am covered for rent default and legal fees in recovery action by my landlords policy I had never thought how this would be done or by who - other than by collection agencies who usually take a big cut or buy debts for a fraction of their actual value. I rang Barclay's to ask if they do recoveries even if I am not a Mis policy holder - they do at 30% commission. Therefore I assume commission classified as legal fees in recovery action and covered by landlords policy.

So what benefit is it to me ....the only saving would appear to be on excess if making a rent default / property damage claim with Barclay's rather than LL policy - but no guarantee they would be successful or how much effort they would make. $44 premium versus $300 xs (bond deducted from money to be recovered). Worth some thought!

So what is the agents motivation to promote this? To confirm they will not take action against tenant if a ruling is made against tenant by tribunal for rent default??? I had not thought this far ahead, but would expect to pay a fee for them to go this far anyway, just as most charge for tribunal attendance.

The other angle, which may be the real motivation is to get us to pay for agents Tenant Database access cost by paying for it through policy.

What are other people experiences in all this sort of thing or with Barclays. Happy to hear from any PM's out there also.

 

[poppy]

I just received the same letter from my PM.

The only major advantage I can see to this "protect and collect" policy (for those that already have landlord insurance) is to help protect yourself against the tenant's "poor housekeeping" and leaving the house in an unclean state. Landlord insurance will cover malicious damage and often accidental damage, as well as rent default but never to my knowledge will they cover leaving the property as a pig sty, and damage caused by the tenant just basically not giving a **** about your property, as opposed to deliberately damaging it.

 

[Goofy]

it may be slightly different up north in regards to LL insurance and getting any money that is awarded over and above the bond, however i would think it would be reasonably similar.

Say tenant abandons the property. The bond is $2000. You need to have the property cleaned, there is damage to a number of items and there is outstanding rent. You go to the tribunal and are awarded a total of $3500 which is broken down as $500 for cleaning, $2000 for damage and $1000 for rent.

So when you make your insurance claim you are really only claiming an amount of $1500 as the bond has already be forwarded to you. Pretty much all LL claims will not pay out for cleaning costs, they will only cover damage and rent. So from the $2000 bond you take $500 for the cleaning, $1500 for the damage and make a claim against the insurance for the balance of the damage of $500 plus $1000 for the rent. It all comes down to how the PM processes the insurance claim. It is pretty rare that just the cleaning component will exceed the bond amount.

Generally it is only in the instance whereby the owner has not taken out LL insurance that the PM needs to engage the services of a debt collector to try and recover the outstanding balance above the bond. Unfortunately as a PM we don't have any 'power' to force a tenant to pay any money, if they are no longer a tenant we don't have any powers to get their forwarding information from any law enforcement agency and even if we have it, we can send letters, make phone calls etc but at the end of the day if the tenant doesn't want to pay then they won't. Debt collection agencies have a little more power, and can also list people with credit agencies.

So unless i have misunderstood something somewhere i really don't understand the purpose of this additional charge??? Your insurance policy covers you for rent default etc and now they are saying that they are also going to charge you for them to try and recoup the money they have paid you from your insurance in which you have paid your premium for??? If that is the case that is ridiculous and i would look at changing your insurance policy. When you have a car accident that is the other persons fault and you are required to go through your own insurance company for the repairs, your insurance then chases the other party for the funds, they don't charge you to carry out that chasing.

It all just seems a bit odd to be honest!!