Importance of Insurance (Fingers Crossed)

Thought Id share my experience of some drama I'm currently going though, that hopefully in the long run show the importance of having all your insurances in place. I'll update the post as things progress.

I settled on my second IP in early March this year, taking out Building / Contents and LL insurance with EBM prior to the settlement date.

The property already had tenants whom from all reports were lovely. Upon taking ownership, I transferred over the PM to a PM that manages my other property nearby. I was informed the tenants file was good, always paid on time, no real dramas to worry about.

A few weeks in and no payment from the tenant. Upon being contacted he states he paid into the old PM bank account (Honest Mistake we think). Days later, old PM confirms they have no payment from him. Tenant decides to not answer his phone or reply to emails.

Come today the PM attends for the previously scheduled inspection to find the property abandoned. A set of keys on the tables, and a note from the tenant saying he lost his job and cant afford the place. Besides a mattress in a bedroom, a lounge downstairs, and a pile of junk the house is undamaged, yet pretty dirty.

So not the best start for this property, but I'm thankful that between the bond, and the insurance i have in place, that this wont be as big of a hit as it might have otherwise been.

Tenant has been served an abandonment notice, and the PM is in the process of taking the bond.

So current costs approx are
Behind in rent approx $1230
Cleaning Required $???
Garbage Removal $???
Advertising Costs $???
Insurance Excess $???

 

Abandoning is a much preferred outcome then going through all the tribunal / eviction process.

What states the property in?

Allocate to bond:
Junk removal
Cleaner
Reletting & advertising
Water bills

Allocate to insurance:
Outstanding rent
Rent til new tenant found
No excess for rent claims

 

Property is in QLD.

Good to hear I might of got the lesser of two evils.

Thanks for the breakdown of expenses.