Landlords trying to save a few bucks on maintenance can end up paying a much bigger price

LANDLORDS who decide to save a few bucks on property maintenance are warned they could end up paying a high price for it.

Generic image of a house destroyed by fire.

WITH rents stagnating throughout the country, landlords who decide to save a few bucks on maintenance could end up turning their investment properties into rental deathtraps.

The biggest insurance claims made by landlords according to Terri Scheer Insurance is for loss of rent, but executive manager Carolyn Parrella, said cutting costs on maintenance could have a bigger price and cost lives.

RENTAL GROWTH GRINDS TO A HALT

GENEROUS LANDLORDS HELP THE NEEDY

Not having the right sort of pool fencing can turn your investment property into a death trap. Picture: Glen Somerville.

“Landlords really do have a duty of care to make sure the house they are providing for rent is safe for people to live in,’’ she said.

She said cutting corners on pool fencing, smoke alarms, and wiring could turn investment properties into death traps.

“I think swimming pool fences are probably the one that they (landlords) really need to pay a lot of attention to because sadly loss of life can occur very quickly and very silently,’’ she said.

“Sadly we have had a few claims where someone drowned in pools where there has been some issues with inadequate fencing.

“Aside from the monetary cost, it is the fact that you have to live with that, you have to live with the fact that you hadn’t provided adequate fencing or that someone had drowned in your pool.

“There are very emotional things to consider as well, that sort of ‘money can’t take that away’ type of thing.’’

If land lords fail to install or maintain smoke detectors it can result in more than the loss of property.

Ms Parrella said old or poor wiring was also something that could cause major issues for owners.

“If a property is built before a certain time generally if it is an older house we will ask when it was rewired or plumbed and if it hasn’t been its generally a risk we would not like to take on,’’ she said.

Aside from the potential loss of a home through fires caused by bad wiring, Ms Parrella said it would be devastating if someone was electrocuted.

She warned owners who didn’t act quickly to repair things such as rotting floorboards and stairs, also increased the risk of someone being injured.

“If it is in poor repair you are not going to attract the best tenants anyway,’’ she said

Claims for motor vehicles crashing into properties are not uncommon.

TOP 10 LANDLORD INSURANCE CLAIMS

1. Loss of rent

2. Malicious damage

3. Water damage

4. Legal liability

5. Storm damage

6. Water damage

7. Theft

8. Fusion — If a motor in a household electrical machine or appliance needs to be repaired or replaced because the motor has burnt out by electric current at the property.

9. Storm damage

10. Impact damage — if hit by motor vehicle or water craft, aircraft, space debris

or satellites, falling trees or branches or TV antennae, satellite dishes or radio masts.

Source: Terri Scheer Insurance

Every second home doesn’t have a smoke alarm according to Smoke Alarms Australia. Picture: Thinkstock.

Buyers agent Chris Gray of Your Empire has tips to stop your investment property becoming a health hazard.

— Install and maintain smoke alarms

As well as the risk to life in many cases your insurance policy may be voided for fire related accidents if you haven’t completed a smoke alarm check in the last 12 months.

According to Smoke Alarms Australia nearly every second household has no working smoke alarm at all and that figure is growing.

— Ignoring mould

If you leave it for too long it can end up costing you a lot of money. I know of a landlord who pays the electricity bill on behalf of his tenants because they need to use a dehumidifier full time to stop the mould spreading.

Mould on walls can cause major issues, particularly for tenants with respiratory problems.

— Poor security

By not installing small things like window security bars you are putting your tenants at unnecessary risk of harm and theft.

— Poor manager

If you have a poor property manager or you never do check-ups, you’re unlikely to know about minor repairs or maintenance. These can quickly turn into a major, very expensive repair if left unattended, and can be detrimental to the building and tenant’s health.

— Location.

While people love the idea of being opposite the water, it may pay to choose a property one street back. Salt spray is a killer when it comes to concrete cancer.