Property covered by rental protection plan

From: Marina. L


I was given this leaflet by a friend. The source is TIME magazine.
The ad states that the Landlords Plus has been 12 months in the making and is the first total rental income protection plan in Australia.
For example a property returning $300p.w represents a total of $46800 potential rental income. The price protection over 3 years is $2700 which is less then the cost of car insurance they state.

The benefits are 100% rental protection,ie. shortfalls in rental returns and market lows, devastating vacancies, malicious damage/vandalism by tenant, undue departure of the tenant, rent loss following damage by tenant and public liability.
This is also 100% tax deductible.

Does anyone have an opinion on this?
This works to about $900 P.A minus the standard landlords insurance $203. This equals $697 and minus around $270 refund on your tax. So it is actually costs you $427 per year and you will have rent for 52 weeks of the year guaranteed.

Landlords Plus Pty Ltd
Authorised agent; Coverlids Realestate
166 Swan st Richmond. Vic
9429 4866
(if anyone wants more info.

What do others think?

Marina.L.
 
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Reply: 1
From: GoAnna !


Personally, I think it is expensive. But one of my strengths is relationships with my tenants. Perhaps you could just put aside some money each year to help yourself out in a rainy day?

I don't know what vacancy is normal but mine is almost zero. I have never had to repair any malicious damage. I have never been to a tribunal.

I think in the end it would come down to your risk profile and whether a vacancy would be a huge problem for you. Given my track record (and I know on the law of averages I will become unstuck at some point) I would rather put my money elsewhere.

Anna
 
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Reply: 1.1
From: Apprentice Millionaire


Anna,

I have read some of your posts on the old forum on this subject.

>But one of my strengths is relationships with my tenants.

I understand you were in HR (correct me if I am wrong), which helps in the interviewing. I guess there is a skill to acquire, so is there a book or information that I could lay my eyes on to learn about interviewing for good tenants?

Cheers
Apprentice Millionaire
(aka Jacques in the old forum)
 
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Reply: 1.1.1
From: GoAnna !


Apprentice Millionaire

Yes, I was in HR with formal training and practical experience in interviewing. I also have a counselling background which gives me further understanding of people. This is partly why managing tenants is one of my strengths.

The other issue is the property and the type of tenants it attracts. So far I have never owned property that would attract low socio-economic groups. That is not to say that people with money won't do the wrong thing. But I have never had a tenant who has experienced in money difficulties such a as loss of job. This year I will be purchasing a different type of property and I may have very different experiences.

Please keep in mind that everyone has their strengths and weaknesses and success is easier if you are aware of them. Use your strengths and work on your weaknesses.

I am aware that my personality really lets me down when it comes to negotiating. This year I will be paying some-one to negotiate on my behalf and to teach me negotiation skills.

Is there a book on interviewing? I haven't seen one (wasn't looking either) but would be happy to talk to you about it.

Will you be at the cash flow game in Melbourne on 10 March. If so I will see you there.

Anna
 
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Reply: 2
From: Khaybar Rottik


Hi Marina,

I have a landlord insurance through the RE who manages my IP. It cost 199.-Yr and covers everything you posted below;

"The benefits are 100% rental protection,ie. shortfalls in rental returns and market lows, devastating vacancies, malicious damage/vandalism by tenant, undue departure of the tenant, rent loss following damage by tenant and public liability.
This is also 100% tax deductible."

The only think I am not sure is about "market lows" I don't know what they mean by that. However if you want the Insurance name. Sent me a email and I would give you the details.
 
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Reply: 3
From: Terry Avery


I somehow doubt that 100% protection would cover rent for three years.
Standard landlord's policies that I have read will cover loss of rent
provided you take steps to let the property within 7 days of it becoming
vacant i.e. placing it with an agent or advertising it. Most also deduct the
balance of the bond money you receive (after you have deducted from the bond
costs of cleaning and repair). They also require a determination from the
rent tribunal against the tenant. I would read the policy conditions,
especially the exclusions, very carefully. Maybe this policy is generous but
it does sound expensive to me, tax deductible or not, it is still an out of
pocket expense.
 
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Reply: 2.1
From: Terry Avery


I would be interested in details of your insurer too please.
 
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