Settling First IP- Things to know: PM, Insurance, etc.

Hello Everyone,

I am about to settle on my first IP in Bendigo. I would like to know what needs to be checked out prior to this and I plan to have a property manager to deal with the tenants and other issues. The property is currently owner-occupied and will need to find tenants.
My question in particular is:

1) Is it better to go with a local real estate to handle the property issues and tenants?
2) Which Building Insurance/ Landlord Insurance to choose and what type would be the best?- I have read in the forum not to go with the Banks as the insurer, any reason for this?
3) What other things I would need to watch out for after settlement on the IP?

Thank you in advance for answering these questions.

 

1) yes imho. As opposed to interstate or online?

2) EBM or Terri Sheer are the most popular around here.

3) watch out for old hot water heaters that burst in you a month after purchase.. no really..

 

Always keep a buffer [cash] for unexpected surprises and any vacancies. Dont forget your IP is going to cost the same as maintenance on your own home ...

 

I highly recommend Breanna from Elders Real Estate as a property manager.

I'd steer clear of Priority1.

@aarond Will probably have a recommendation for a pm too.

As for insurance, well I'm with RACV, but so far I've never had to make a claim, so I can't be sure what they are like. I believe they recently made some changes that might affect new policies for Landlords insurance. So look into that closely. Several other companies have recently made some changes recently to their policies regarding rent defaults.

 

I've heard good things about PH Property, but can confirm P1 is no good. Also had a negative experience with the Professionals.

 

Try to select your agent prior to settlement so they can do the pre-settlement inspection with you, take photos and get your advert up and running. Some property managers can also help you pick out stuff that the builder should fix (touch ups for example) but note they don't replace professional building inspectors.

Good luck!

 

Thank you, everyone, for your wise advice. I'm settling on the 26th of this month, thus I'm still hunting for a good PM. I did have a quote compare online, the Home contents and landlord insurance combined costs approx $1000-$1100 per year for my property. I'll try to find a PM and have him attend the pre-settlement inspection with me for the rental advert and appraisal. It seems pretty hard to find a good PM in Bendigo, considering not having local knowledge.

 

Correct me if I'm wrong, I think from what I have read is the contents insurance covers things like carpets, blinds and other fittings, whereas building only insurance doesn't.