Landlord rush from property

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From: Rob .


See the following in today's Adelaide Sunday Mail ( http://www.theadvertiser.news.com.au/common/story_page/0,5936,4257551%255E2682,00.html ). Isn't it great how the media pushes a point of view. The other point of interest is that some insurers won't cover self-managed properties.
Is anyone else seeing this happen?

"Landlord rush from property

05may02
LANDLORDS are deserting property as an investment amid a record surge in liability claims, rogue tenants and revenge attacks.
The warning by landlords and a specialist insurer comes as a national database of tenants who leave properties owing money tops 8000 for the first time.
Insurer Ms Terri Scheer said that in some Adelaide suburbs one in six insured properties now had tenants leave owing rent.
Ms Scheer is managing director of Terri Scheer Insurance Brokers, an Adelaide-based national firm insuring landlords.
Payouts by the firm have tripled in the past two years to $2.2 million, more than double the rate of business growth.
The bulk has been for unpaid rent but Ms Scheer noted a host of factors were forcing landlords out of property, including:
 GST driving up costs while more tenants default.
 PROPERTY value making it attractive to sell, helped by demand due to the First Home Buyer's Grant.
 GROWTH in retribution by evicted tenants, ranging from arson to harassment.
 A SURGE in legal liability cases.
"Legal liability claims lodged against our landlords have gone from two to 15 and is becoming the quiet killer for investors," Ms Scheer said.
"More tenants and even guests of tenants are suing for things which are a normal part of living.
"There also is a growing trend in the value of malicious damage claims by tenants. They used to average around $2000 but now are around $7000 and the number has increased 30 per cent in two years.
"The rate of deliberate arson by evicted tenants has tripled and the last fire cost more than $100,000.
"Landlords are selling up and investing in alternatives."
This year Ms Scheer stopped insuring private landlords who manage properties because payouts were running at triple the premium income. She now only offers insurance to landlords who have professional managers who can screen tenants.
The comments comes as the State Government prepares a working party to review the Residential Tenancies Act amid calls for changes to protect landlords.
Landlords Association state president Margaret Kohlhagen called for penalty charges for renters who fell into arrears, action after a week's default instead of two and immediate eviction of undisputed failure to pay rent.<"
 
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