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.
Although the
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:
That’s the cost of 1 cup of coffee a week to manage your rental property
https://mailchi.mp/realrenta/50-deal-2020
RealRenta also has a free vision, so why not check it out
Jason Gwerder
Friday, 4 December 2020