A landlord encountering unexpected costs as part of being a property owner can catch them off guard if they haven’t planned for these expenses.
Owning a property and becoming a landlord creates a sense of financial freedom even though it comes with many expenses – such as stamp duties, insurances and maintenance.
Here are 6 unexpected costs landlords deal with and the solutions on how to fix them.
1. A tenant disappears from your property and stops paying rent
There will be moments where a tenant does not show up to your rental property and cuts all communication with you for longer periods of time – and using the excuse that their phone is broken cannot be taken due to
Maybe they have stopped paying the rent, left to avoid a difficult or unpleasant situation or the rarest and worst-case scenario, passed away due to unforeseen circumstances.
While you should do a police report onto anyone evading their rental payments, you can also chat to your insurance team to claim some of those lost payments.
2. The tenant left stuff in the rental property
If a tenant vacates your property without an explanation but left their stuff behind, what do you?
From the smallest of items such as pot and pans to couches or bed frames – you may need a hand, physically and financially, to move the furniture.
Ensure you are up to date with your Landlord Insurance as these covers many costs associated with those types of things.
Have a simple 10-minute phone call to your preferred insurance company, and you are good to go.
3. A tenant suddenly passes away
No landlord in Malaysia wants to think about this, but in the event of a tenant’s sudden death, there are a few things you may need to consider.
Firstly, it might be a while between tenants or payments, so prepare an announcement on the unforeseen circumstance – without mentioning the death. This allows your property to be still open for availability when ready, and you will soon have an outpour of future tenants.
Secondly, you should check if your policy covers rental default, such as cover cleaning up after a tenant’s death or accident.
If the incident circumstances are linked to your property, you should check that your landlord insurance policy has liability cover.
Read more how to prepare as a landlord in Malaysia;
4. A robbery has occurred in your rental property
Several home insurance can cover thefts under most contents policies, but sometimes it can be harder to account for items stolen by people within the property.
Be sure to check if you’re covered in the instance your tenant takes your furniture, appliances, or even doors from home.
5. Damage due to bad weather
Fires and floods are always a surprise, with floods a normal occurrence in Malaysian weather.
Nobody expects their property to be ravaged by the elements, but there’s no denying it can be costly when it happens.
Flood storm and fire damage can usually be repaired and could be covered in your insurance policy.
If you get the call that your rental property has been affected by any of the above, you’ll want to be prepared financially to fix the damages, and IQI Global is the team to help in your future.
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