It is one of the greatest fears for a landlord – having a bad tenant in the property, potentially resulting in lost rent, property damage and delayed periods of time to gain vacant possession of the property.
We see it often in the news and media 'The tenant from hell'. Appointing an agent is a wise choice in owning an investment, as the 'bad tenants' prey on the private landlords who are not skilled in the selection process, reference checking and have no access to national tenant databases to determine if a tenant has defaulted in previous tenancies. While we conduct the most thorough reference checking, there are times when previously good tenants can turn bad, which can sometimes cause undue stress for landlords.
Examples of tenant changes in circumstances:
- Loss of employment
- Sickness, stress, pressure or mental illness
- Change in partners or friends
- New addictions or involvement in illegal activities
These changes can take place at any time. As your managing agent, we are constantly working towards minimising your risk with regular inspections and constant rental payment follow-up when required. However, if a good tenant turns bad, you need to ensure that you are covered. Landlord protection insurance is there to 'protect' you when unexpected things go wrong.
The reality is that renting a property is never a guarantee of ongoing good tenants as circumstances can change.