Primary service : Property Management
When all is running smoothly with an investment property, it’s easy to “set and forget”. It is only when things start to go wrong that the importance of having a trusted, experience property manager really comes to the fore.
This was the case for Adrian Stone, who bought a new property off the plan and promptly secured a tenant. In the first three years, Adrian had no problems at all.
But when the tenant was made redundant – and did not inform Adrian or CPS – the rent went into arrears for the first time ever. Prompt and decisive action by his CPS property manager ensured that Adrian was not out of pocket for long.
Challenge
The real challenge in this scenario was that the tenant was refusing to move – he simply couldn’t afford another property.
Upon hearing this, the CPS property manager set to work to minimise any potential losses; and kept in regular contact with Adrian during what was a stressful time.
Solution
Property management requires intimate knowledge of landlords’ and tenants’ rights. CPS property managers are equipped for situations like these – taking action as soon as it’s needed, and giving clients practical and valuable advice about their investment property.
When the tenant was 14 days in arrears, a termination notice was dispatched and lodged with the tribunal. Two weeks’ later, the tribunal gave the tenant two weeks notice to vacate. CPS maintained constant communication with the tenant, ensuring that he vacated the premises when required.
Most importantly, Adrian had taken out landlord’s insurance with EBM Insurance, on the recommendation of CPS. His policy included loss of rent for up to six weeks – which CPS promptly recovered from the insurer for Adrian.
Result
Adrian received his payout from EBM insurance within two weeks of the claim being made, minimising the time he was out of pocket for his investment property.As soon as the tenant vacated the property, it was re-let at an increased rent – a bonus for Adrian and his investment property.
“If CPS hadn’t recommended landlord’s insurance, I would not have known it existed. I would have been left out of pocket as the bond does not provide enough coverage for the best-case scenario of evicting a tenant – let alone worst-case! Loss of rent can really hurt your cash flow, and all investors should cover themself for the worst-case scenario. As CPS showed me, I managed my risk!” said Adrian.
