We’ve all heard the horror stories of sublet and privately managed properties on the news and current affairs shows: trashed properties, clandestine labs and squatters who refuse to leave – to name a few.
Often we are quick to think “this will never happen to me” and only when it concerns someone close to home do we really take notice.
Our Property Management team have recently become aware of one of these stories affecting an inner city Melbourne apartment. The tenants who held a private lease decided to sublet the apartment while they were overseas in order to supplement their rent. Naively they found someone interested online and handed over the keys to their home. Upon their return, the apartment was in good condition and it seemed as though the arrangement had been a success… for a few days.
It was much to the surprise of the young tenants when they were awoken at 4:00am later that week to the sound of their front door being ram raided and an armed swat team storming their apartment. After the apartment was turned upside down and the tenants were interrogated, the activities of their house guest came to light. Not surprisingly, the person they had found online to sub-let their property had sinister motives. Whilst they were away, their sub-tenant had been using the apartment for the trafficking of an illicit substance and was being pursued by the police.
The experience left the tenants shaken as the recipients of a very difficult life lesson, but what about the landlord? The raid had resulted in the disintegration of the front door, the buckling the frame and, being a custom sized fire rated door – the repair bill was in excess of $5,000! Fortunately the landlords insurance covered for such an event and the mortified tenants accepted their responsibility to cover any excess costs.
Evidently, this story could very easily have had a much poorer outcome. As professional Property Managers we carry out comprehensive screening to prospective tenants and strongly recommend all of our clients hold landlord insurance to minimise the risks surrounding one of their most valuable investments.
Are you adequately insured? We highly recommend Landlords review their insurance policy yearly to ensure that their most valuable assets are adequately covered. Feel free to give us a call or shoot us an email should you require any more information or want a recommendation to one of our preferred insurers.