The Three Most Compelling Questions We Are Being Asked By Landlords And Investors Right Now
As a large property management agency, we have the ability to gain a greater understanding of the common concerns that Landlords and Investors are currently experiencing. Check out the three most common questions we are getting asked:
1. Can I get landlord insurance?
The short answer is yes. Whilst most providers have closed their books on new policies, many insurers are now offering limited policies with certain limitations on rent default. These policies are generally only available through real estate agencies and the insurer’s are choosing agents who are low risk only. It is always recommended that you speak to your professional insurance advisor or broker to determine the specific policy related to your insurance needs.
2. What happens when the tenant stops paying rent?
If a tenant is unable to pay rent due to Covid19, a Property Manager would still follow existing legislation and procedures around managing rental arrears. Whilst there has been some protection afforded to tenants through special COVID19 matters, it does not afford them the opportunity to stop paying rent and the Tribunal is being very strict in requiring evidence that their financial struggles relate to the current situation.
Whilst there has been some widespread media about how many tenants may not be paying rent on time, our agency is managing this situation tightly and less than 5% of our tenants are experiencing financial stress related to COVID19. Strict application methods, proactive communication with both tenant and landlord and clear documentation outlining what has been agreed have achieved these lower rates than anticipated.
3. How is the Adelaide rental market?
The Adelaide rental market has displayed exceptional resilience during the challenging COVID-19 period.
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At Turner Real Estate, we have observed consistent enquiry levels within the median weekly rental range of $350-$400 per week. Many property investors that had previously been utilising AirBnB and other short term rental options, have re-entered the long term rental market seeking stability for their investment during these uncertain times.
Current statistics suggest that the market should continue to improve as state restrictions are eased, which will be welcome news for property investors as we head into quarter one of the new financial year.
If you are have any other questions you would like answered please do not hesitate to get in contact with our investor support service, who will be happy to assist. Click here to contact Investor Support.