About Landlord Insurance

Many property investors understand the importance of insurance, but they don't understand how Landlord's insurance protects them as property investors.

Landlord insurance covers owners from the risks that are associated with tenanted investment properties.   A Landlord insurance policy for a unit would cover such things as a tenant who absconds and stops paying rent; costs associated with evicting a tenant, malicious, accidental or intentional damage to the property by the tenant, fires and theft.  All of these situations have the potential to leave your property a) untenanted for a period of time and b) may result in costs to you as the Landlord.  Landlord's insurance provides compensation to the Landlord for the costs that they incur to rectify the property, and also compensate the landlord for the loss of rent during that time.  Many policies will also cover legal fees that may incurred in evicting tenants and recouping lost rent.

Building insurance may also be necessary for houses to cover the building itself.  Insurances for investment properties are a tax deductible expense.  At Melissa Maimann Buyer's Agent, I am able to recommend insurance companies and explain the differences in the policies and what they cover so that my clients' investment properties are fully covered.

What is it like to have a buyer's agent?

I asked my clients to share their view on what it was like for them to work with me as their buyer's agent, compared with their previous experience of buying property alone.  Here's what they had to say:

We're a couple with a growing family. We bought our first place together - a two-bedroom unit - 4 years ago. Now that we're expecting our second child, we need a larger home. This has also meant moving to a different part of Sydney. We wanted to live in a good area, a safe area, but we weren't sure where would be good for us. We also didn't know the market very well, having been out of it for some time now.

We remember what we went through buying our unit - we both felt really frustrated and at times just really despondent. Now we have our toddler and a new baby on the way, we didn't want to go through all that hassle again.

We had lots of questions this time around, because we wanted a home we wouldn't need to move from for a while. We had questions like: How can we know that the area we're choosing is a good area for us as a family? What are the crime rates? What facilities are available for us, like health, education and also transport? We didn't want to have to deal with agents - that was a real struggle last time. What should we expect to pay in general for what we're after, and more specifically, for the property we decide we want to buy? We had loads of other questions; these are just a few.

We met with a couple of buyer's agents before we made our choice. It came down to the philosophy of our buyer's agent and their willingness to work with us on our plan and goal.

What we loved about having a buyer's agent this time around was having our Saturdays free for us and our family. We work hard during the week, and when the weekend comes, we just want to unwind and relax, not having to follow an inspection schedule, find parking, queue up for inspections and then rush on to the next one.

Once the properties were pre-qualified and inspected, we had a look too - but these were only a handful of properties that we knew - and our buyer's agent knew - would suit us well. And they did! After leaving a property, we would have a discussion about what we liked and didn’t like about the property, and more importantly, our plan for moving forward - you know, when you sell your home, your agent tells you about all the buyers and how they plan to negotiate with them to get the best deal - well, this is in reverse. Our agent talked with us about the selling agent, about the vendor, the property, the reports and contract and so on - and together, we devised our own plan of attack. We never felt alone.

Yes, there was a cost for this service. That said, the small fee pales in comparison to the time we saved, the hassle and heartache we saved, and the expert service we received. We paid a great price for our home - less than what the vendor was asking, and more importantly, we didn't buy a couple of other properties we had been interested in - and may have otherwise bought - and later regretted.

Buying a home at auction?

Buying a home at auction can be one of the most stressful ways to purchase a property.  Auctions are totally unpredictable: you never know how many people are going to be there; how many will register to bid; how many will actually bid; and how deep their pockets are.

Compounding the issue, most home buyers have very little experience with buying at auction, and nerves can run very high. It comes as no surprise that the majority of people who try to buy a home at auction miss out.

Faced with a dilemma: do we increase our budget or do we stop bidding - many people choose the former.  The results of this can be disastrous. 

Bidding at auction on behalf of a client is a very different experience.  Removing the anxiety, emotion and excitement, and focusing more on an agreed and explicit upper price limit and budget, a buyer's agent confidently and skillfully knows when and how to bid, how much to increase the bid by as to not over-pay, and perhaps, when to walk away.  If you keep missing out at auctions, consider using a buyer's agent such as Melissa Maimann Buyer's Agent.  Auction bidding services are well-priced, and a flat fee ensures that you know ahead of time what the fee will be - no surprises.