What’s the deal with landlord insurance
and rental bonds?
Rental bonds offer a level of
protection if tenants break their lease agreement e.g. the tenant damages the
property or fails to pay their rent.
The bond provides a financial
safety-net from which some costs incurred can be recouped.
In many instances, the bond will be
insufficient to cover costs and the landlord could be left out-of-pocket,
either footing the bills or pursuing the tenants through the courts.
Usually, in all but minor cases, the
bond is inadequate which makes landlord insurance an important investment.
collection of a bond is not compulsory in all states and territories, making
sure you collect the right amount of bond at the start of a tenancy ensures
your policy responds effectively when it comes time to make a claim.
Failing to retain a
bond can cause your claim to be reduced by the amount of the bond, or even
refused (it is a condition of EBM RentCover policies that a four-week bond be
collected at the time of signing a new lease agreement).
Right now, at RealRenta Join now and get 50% off the normal low price:
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Friday, 4 December 2020