Landlords insurance with onsite management

[Pandabites]

Hi

Just wondering if anyone has had experience in getting landlords insurance where there is onsite management?

I have IPs insured with Terri Scheer (for properties with no onsite management) but part of their policy is that an external agent needs to manage the property in order for them to provide landlords insurance. Have just written to them to find out if onsite management falls under this category or not, but am curious about other's experiences in getting this particular type of insurance, through Terri Scheer or other companies.


thanks

 

[ChrisOs]

Hi Pandabites,
You may be confusing on-site management with having a property manager manage a property. In my experience, an on-site manager looks after a complex which may comprise anywhere upwards of a dozen or more units/townhouses. They tend to mow the lawns, put the garbage out, clean the pool and generally keep the place looking tidy.

On the other hand, a landlord may use the services of a property manager to rent the property (i.e. find tenants), collect the rent, do regular inspections, arrange for problems to be fixed etc. Terri Scheer (and other brokers/insurers) require that a property manager looks after a property otherwise they will not provide insurance.

You should note that some on-site managers are also property managers but that does not have to be the case.

If you engage a property manager then you should have no trouble with insurance. If you intend to self manage then the choice of insurers is not a great.

Regards,
Chris.

 

[Pandabites]

Thanks for the reply Chris, much appreciated - I've been told that the onsite managers have restricted licenses or some such thing, so will find out exactly what that means. From what I know, they do more than just maintenance/keeping of the grounds, but also collect rent, find tenants etc...the usual things that property managers are responsible for.

I'm more concerned in case something goes wrong e.g. need to go to the Tribunal, knowledge of the (ever changing) tenancy regulations and keeping up to date on those, that kind of thing. More investigation on my part methinks....

 

[ChrisOs]

Hi Pandabites,
I have a townhouse in a complex where there is an on site manager arrangement. They also do the property management for me. It is convenient and they really have their finger on the pulse. They know what is going on in terms of realistic rents and they usually have a waiting list of potential tenants, so it has worked well for me. They also do minor maintenance such as replacing washers and they charge $10 for that instead of regular plumbers rates so there are economic advantages as well.

There are many threads regarding self managing versus property managers. There are some very one eyed opinions on the subject as well.

Assuming that your location is correct (i.e. Denmark) then I would strongly suggest that you have a property manager look after your investment.

Regards,
Chris.

 

[Rixter]

I have landlord insurance for properties with and without a PM who resides on site.

To my knowledge it does not make any difference.

Hope this helps.

 

[Pandabites]

Thanks again for the responses from Chris and Rizter, much appreciated. Have since found out that I'll have no problem getting landlords insurance with Terri Scheer for onsite management as it is covered under their policy.

Thought I'd pass on the information for any future use.

 

[ChrisOs]

All's well that ends well.
Chris.