Rental Costs In Australia Are Still On The Rise
With the rental market in Australia becoming increasingly challenging, both tenants and potential landlords need to make some interesting choices. The cost of renting has hit new highs, making it difficult for many Australians to find affordable accommodation.
On the flip side, if you have an available property and you’re thinking of renting it out, there’s much to consider, including the crucial need for landlord insurance.
The Current State of Renting in Australia
According to the latest data, the national median rent in Australia has reached $627 per week, as reported during the first week of May, 2024 (CoreLogic). This increase is influenced by various factors, including limited rental supply, increased migration, and rising interest rates.
In Tasmania, particularly Hobart, the median weekly rent for a 3br house is around $540.00 and a unit at just over $450.00, showing almost no change from the previous 3 months.
Do Not Forget Landlord Insurance
For those thinking about renting out their property, there is much to consider. However, amongst all of the issues like cleaning, home presentation, smoke alarms, electrical safety, carpets and curtains and gardens there is one thing you must not forget or skimp on – landlord insurance is a must-have.
This type of insurance typically covers things like:
Property Damage: Protection against accidental or malicious damage to your property caused by tenants or their guests.
Rental Income Loss: Covers lost rental income if the property becomes uninhabitable due to damage or if tenants default on rent.
Liability: Protects landlords from legal claims if someone is injured on their property.
Having a tailored landlord insurance policy can help you navigate the various challenges of being a landlord, providing financial protection against unexpected events.
Pitfalls for New Landlords and How to Stay Safe
While renting out property can be lucrative, new landlords can face several pitfalls:
Tenant Issues: Problematic tenants can cause property damage or default on rent. Proper tenant screening and having rental loss insurance can mitigate this risk.
Legal Troubles: Landlords can face legal issues if they fail to comply with tenancy laws. A local insurance broker like RSM Tasmania can provide advice on what coverage is essential to protect you legally.
Property Damage: Accidental or malicious damage can lead to costly repairs. A comprehensive landlord insurance policy can cover such damages, saving you from out-of-pocket expenses.
Unexpected Costs: Maintenance and repair costs can add up. Insurance can cover certain damages, but routine maintenance should also be budgeted for.
Renting out property in Australia can be a smart financial move, but it’s not without risk.
With rental costs on the rise and the market becoming more competitive, landlords need to protect their investments. Landlord insurance is a crucial safeguard against potential pitfalls.
If you’re considering becoming a landlord or already are one, working with a reputable broker like RSM Tasmania can help you secure the right coverage and avoid common issues.
As the rental landscape continues to evolve, being prepared and protected is key to successful property management.
Talk to Roger Hosie from #RSMTasmania today.
Call Now! (03) 6244 7854, or email
