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Experience with insurance claim

Discussion in 'Property Management' started by EN710, 27th Apr, 2016.

  1. EN710

    EN710 Well-Known Member

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    Just a quick one.

    Situation - tenant in arrear is in fixed lease until end of Jan 2016
    Tenant stop paying rent early Dec 2015
    Court order and warrant obtained mid February 2016
    New tenant wasn't found until mid April 2016

    Insurance claim officer stated that they will only pay until Mid Feb 2016 when the property is repossessed. No lost of rent can be claimed between Feb to mid April as when the tenant is out of the property they're now in periodic lease, which means insurance only cover until when they leave.

    :( it's not like I can renew they lease when they are not paying their rent, nor I can advertise the property to be ready by end of tenancy because tenant didn't indicate they are going out at all. Nor I can renew their contract if they're not paying.

    Oh well.:oops:

    Lesson learned. Double check your policy and if tenancy is arrears in between fixed term going to periodic, expect that the time to find new tenant is not covered. I might need to shop new insurance provider
     
    Last edited: 27th Apr, 2016
  2. Chilliblue

    Chilliblue Well-Known Member

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    Great advise.

    Which insurer @EN710 ?
     
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  3. EN710

    EN710 Well-Known Member

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  4. Nick Valsamis

    Nick Valsamis Well-Known Member

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    It doesn't matter which insurer it is because regardless of the insurance company, none of them will pay you more than what you are legally entitled to.

    So if the tenants are on a periodic lease and have moved out, you cannot collect rent after that time and therefore insurance won't pay anything either.
     
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  5. EN710

    EN710 Well-Known Member

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    Yes know that it's the case when the lease is periodic in the first place. I was just unclear as the tenant was in arrears when they are within the fixed term lease. Now I know - oh well.
     
  6. Xenia

    Xenia Adelaide Property Manager Business Member

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    This is the reason we do not allow periodic leases.
     
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  7. Lil Skater

    Lil Skater Well-Known Member Business Member

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    Easier said than done in most cases, especially in Vic where you cannot evict based on not signing a fixed term lease.

    Although I do agree, must better to have a lease than not.

    @EN710 - crappy situation to be in, and I think everything should be covered until a new tenant is found - but I'm sure insurance companies would go broke with this approach!
     
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  8. proper_noobie

    proper_noobie Well-Known Member

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    Can you sufficiently increase the rent if the tenant refuses to resign a lease?
     
  9. Nick Valsamis

    Nick Valsamis Well-Known Member

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    Yes, you can increase the rent without a new fixed term lease in place.
     
  10. TMNT

    TMNT Well-Known Member

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    so tell me, how do you not allow a tenant to not be on a periodic lease???
    how do you forcibly make a tenants sign a lease when they dont want to?
     
  11. D.T.

    D.T. Adelaide Property Manager Business Member

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    - Be organised.
    - Start the process a couple of months ahead so you know what the wishes of both intentions of both the landlord and tenant are.
    - Know that the end of lease notice and the renewal notice have similar amounts of notice periods in SA unlike other states ;)
     
  12. Xenia

    Xenia Adelaide Property Manager Business Member

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    Well we are affiliated with the mafia and send them over ;)
     
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  13. EN710

    EN710 Well-Known Member

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    Are they for hire in other state? ;)
     
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  14. Xenia

    Xenia Adelaide Property Manager Business Member

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    Will send them over for you EN. :p
     
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  15. TMNT

    TMNT Well-Known Member

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    organised or not, if a tenant doesnt want to or isnt planning to sign a lease for whatever reason, isnt going to sign, unless you threaten them explicity or inexplicitaly
     
  16. D.T.

    D.T. Adelaide Property Manager Business Member

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    Dot points work better when you read all 3 rather than stopping at the 1st one.

    If all else fails, I like Xenia's method above too :)
     
  17. EN710

    EN710 Well-Known Member

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    A long time ago, my rental increase letter sent to me from PM (for end of my lease) has wording something along this line

    "If you do not renew your lease by xxx at rental $yyy ($40 more per week) ...
    you might find yourself on the road"

    To this date I'm not sure whether this was ok
     
  18. Xenia

    Xenia Adelaide Property Manager Business Member

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    Will explain how soon. At work ATM :)
     
  19. Nick Valsamis

    Nick Valsamis Well-Known Member

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    Must be the lease extension for SA.

    But with other states it's usually possible with most tenants that don't know it's optional to extend the lease.

    Another thing that may convince the tenant is by explaining that a new fixed term lease will keep them safe from any rent increases during that period.
     
  20. D.T.

    D.T. Adelaide Property Manager Business Member

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