What if something goes wrong at my investment property?

Any type of investment comes with its own set of risks, and property investment is no exception.

One of the major issues that landlords worry about is the potential for any type of property damage, which can be costly and cause contention with tenants.

Of course it is up to your tenants to look after your property and report any issues they find (which is why you should take your time finding good tenants), but even with the best tenants in place things can go wrong, whether it’s a burst pipe or building materials wearing out over time.

So what do you do to keep your investment property in check and save yourself from large financial costs?

Set up a buffer – Many property investors put aside a contingency fund so they are ready to cover the cost of replacements or repairs, as they are needed. This can happen through no fault of the tenant’s, such as when a property ages or simply breaks down.

Having set funds available will help minimise the stress of unexpected costs and will help you fix any issues as soon as they arise.

Check your insurance policy – If you own an investment property then you’ll want to make sure you have landlord insurance in place to minimise the potential financial impact that can arise from property damage.

Every insurance policy is different so it is always a good idea to read yours very carefully to find out what you are and aren’t covered for.

Items you might want to check for include things like whether contents are included (if you rent a furnished property), pet damage or if you need to be covered for particular natural disasters like bushfires or floods.

Remember prevention is better than cure – Regular property inspections are a must to help identify any potential maintenance issues before they turn into big problems.

It’s best to address all maintenance issues as soon as they come up to keep your property in good shape for you and your tenants.

Keep in mind that your tenants are more likely to stay on and look after a property if it is kept adequately maintained too.

Leave a Reply

Your email address will not be published. Required fields are marked *