Warning: safety is no joke
serious business for real estate investors, and can potentially destroy your wealth if not handled correctly. Landlords are responsible for any dangers lurking in their properties, experts say.
‘‘If maintenance issues aren’t attended to promptly and the tenant injures themselves as a result, the landlord could find themselves exposed to a costly legal liability claim,’’ says Terri Scheer Insurance executive manager Carolyn Majda.
One way to lower your financial risk is by using a property manager, she says.
‘‘Property managers are able to conduct regular property inspections to identify maintenance issues, ensure the tenant is looking after the property and, if required, liaise with appropriate tradespeople as soon as possible to address any concerns.’’ Of course, you can manage your property yourself but make sure you keep on top of any threats to tenant safety.
Another way to reduce risk is to insure your property correctly. A standard building and contents policy is not enough for a real estate investor. Landlord insurance policies include a growing pile of options, including cover for legal expenses and loss of rent.
Importantly, insurance usually comes with millions of dollars of public liability protection, plus it’s a tax deduction for an investor.
Dodgy tenants are not the only threats to a landlord’s investment. Dodgy flooring, faulty wiring and dangerous appliances can be just as painful financially if not managed correctly.
And watch out for signs of T-Rex in the garden. I believe they have a taste for pet dogs.