Insurers limit rent default payouts for Periodic Tenancies

Folks, a word of advice that at least 2 major insurers that I am aware of, are limiting landlord insurance payouts for rent defaults.

If your tenant is on a periodic agreement and your tenant defaults, they will only pay 2 or 3 weeks (respectively) in NSW and 4 weeks in VIC - as opposed to 15 weeks otherwise. I assume it is the same in other States (and probably other insurance companies if this is what these 2 are doing).

Yet another reason for PMs to have new tenancy agreements signed once the current ones expire.

 

In Vic you can’t force tenants to sign another yearly lease. They have a legal right to go month to month.

 

Same in NSW and I'm pretty sure in most other states too.

 

Not in WA.

I've heard PMs from Vic and NSW say this, which surprises me because I don't really buy into what the legal basis would be.

Retaliatory eviction or something?

 

Are you saying that in WA landlords have the right to force tenants to enter into another fixed term agreement?

 

Well pretty much, because they can just issue a 30 day termination notice for the end of the fixed term at the same time as a renewal offer.

 

I see. The same rule applies everywhere, but - other than threaten to terminate them - you couldn't force them to sign anything legally either. I am saying "threaten" because if they are a good tenant you wouldn't want to do that in an oversupplied market like Sydney or Melbourne...