First IP up for rent

Hi everyone!

I will be having my first property (initially PPOR) up for rent next month as an IP, as we will be moving to a property we recently bought(will be our PPOR soon).

The IP is a unit in a two year old building in Liverpool. I have selected a PM and negotiated with 4.5% plus GST for management fees. I have been reading the forum about the landlord insurance. Mostly have been leaning towards EBM, Terri Scheer and PIP. Based on your all experience. What is the company that offers tenants payment default (covid etc) and is easy to claim. Any other kind of insurance I should take as well?

Any other things I should cover when having my first IP?
TIA

 

Congrats Pink Marjory!

Keep asking questions!
Ask about advertising,
opens,
etc
I hope this helps

 

In their standard policies EBM covers 6 weeks and Terri Scheer covers 20 weeks of rent default, so its something to keep in mind when selecting a policy.

Also look into smoke alarm compliance (although your PM should be able to guide you). Make sure the tenants are provided a copy of the by-laws and also have access to the building manager for any urgent issues.

 

Congratulations. I'm a fan of EBM. They pay out quickly, and there's usually no issues.

 

we didn’t have enough equity for our 1st property to buy our new PPOR, so they’re kind of separate. Is it safe to say I’ll convert my IP loan to IO instead of P&I(as it was initially our PPOR) thanks!

 

Thanks for all your advises! Will look into them

EDITED:
Will definitely get a landlords insurance.
I just looked them up, will I need a building insurance if my unit is under strata(aren’t they have strata insurance? As it’s a new building)

thank you.

 

It’s likely you need to get a current valuation when actually turning the property from main residence (PPOR) into IP.
This helps for CGT later as it resets the cost base to current value.
See @Terry_w posts under Terry’s tax tips & also posts/ comments from @Paul@PFI .