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GUEST OBSERVATION
It’s that time of year when people are enacting their summer holiday plans.
Summer can be a particularly busy time for investors with holiday homes in their portfolios.
While most guests will do the right thing, even the most careful holiday makers can take a more casual approach to looking after a rental property when in holiday mode.
People who rent their holiday homes can expose their property to specific risks including theft, malicious and accidental damage and legal liability issues arising from holiday makers injuring themselves on a property.
This can also lead to loss of rental income while damages are repaired.
The risks can be significant when you consider that a holiday home may be rented out a number of times a year.
We have seen instances where goods have been stolen from a holiday home to damage caused by an overflowing bath tub left unattended.
There were a number of tips to consider that can help reduce these risks during this busy period.
<ul>
<li>Presenting the property</li>
</ul>
Before the holiday season begins, it’s important for landlords to prepare a well-presented property for their guests.
A fresh coat of paint or attending to gardening maintenance can help ensure the property remains well cared for.
Landlords who offer an attractive home set the standard and may be more likely to be rewarded with tenants who take care of their property and pay their rent on time.
<ul>
<li>Safety</li>
</ul>
Landlords should inspect holiday homes regularly to ensure lights, white goods, appliances and smoke detectors are in working order and that the property is safe and habitable.
A detailed condition report should be completed which can include photos and videos of the property and any valuable furniture. 
By providing guests with a safe environment to live in, it may also reduce the possibility of injuries taking place which could potentially result in a liability claim for the landlord.
<ul>
<li>Security</li>
</ul>
Some guests may become casual in their approach to security while on holidays.
Often the warmer weather means doors and windows may be left open during the day or at night.
Landlords should ensure they have appropriate security measures in place to deter would be thieves, including secured locks on screen doors and windows, sensor lights outside the property, a key box with PIN to store the key for guests coming and going from the property and fencing around the property.
<ul>
<li>Welcome pack</li>
</ul>
It is a good idea to prepare a welcome folder for the holiday home that contains important information.
This may include the terms and conditions of the occupancy, such as check-in and check-out times, the rental rate, the maximum number of occupants and vehicles to be housed at the property and after-hours emergency contact details.
The folder can also include a detailed inventory of the furnishings included for use and a list of keys, remotes and key cards.
This will enable tenants to check the list and replace anything that may have been broken or misplaced before they vacate.
You may also like to include information about the general area such as garbage collection times, local restaurants and popular spots to visit.
Leaving a small welcome package of basics, such as teabags, coffee, sugar and biscuits for the tenants can help encourage tenants to treat the property as if it were their own.
<ul>
<li>Appropriate insurance</li>
</ul>
Short-term rental holiday insurance can provide reassurance that property owners won’t be left out of pocket if their rental property is damaged or robbed over the holidays.
Landlord insurance policies for holiday homes generally provide insurance for short-term rentals of up to 12 weeks.
Landlords who protect themselves from the risks associated with renting a holiday home can then make the most of their time during the busy holiday season and help ensure their tenants have an enjoyable stay this summer.
Carolyn Parrella is executive manager of <a href="https://www.terrischeer.com.au/" target="_blank">Terri Scheer Insurance</a>.
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CarolynParrella-hu79pP9ihj

Five tips to protect your holiday home this summer

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GUEST OBSERVATION
Rent default can become a serious and very real risk for landlords during December.
There are often additional expenses and financial pressures at Christmas so paying rent may be harder for some tenants at this time of year.
Arrears can be a very long and costly process to resolve and may leave landlords considerably out of pocket and put them under significant financial stress.
There are a number of measures landlords could put in place to prevent rental default from ruining their Christmas.
<ul>
<li>Screen tenants</li>
</ul>
Attracting a suitable tenant from the outset may help you retain them in the long-term.
If tenants are happy they may be more likely to pay their rent on time, stay in your property longer and look after it as if it were their own.
Thoroughly check potential tenants’ references during the screening process. Speak with previous landlords or property managers and ask specifically whether they had any issues with the tenant in the past.
<ul>
<li>Maintain a positive relationship with tenant</li>
</ul>
Open and transparent communication may encourage tenants to uphold their rental agreement.
Even the most reliable tenants can suffer a change in their financial circumstances that could result in them no longer being able to pay rent.
Landlords understand it’s a hard time of year, and if a tenant feels they can speak to their landlord about a change in their situation or advise in advance if they are having difficulty with rental payments, then they can work with them to address the issue quickly.
<ul>
<li>Send a Christmas card</li>
</ul>
A little bit of Christmas cheer can go a long way, particularly at this time of year.
Sending out a Christmas card or small gift to wish tenants a happy festive season can also serve as a way to gently remind them of their obligations to pay rent on time.
Consider placing a small calendar in the card outlining key dates for rental payments.
<ul>
<li>Monitor arrears daily</li>
</ul>
Monitoring arrears daily is an important task.
Check your bank account the day the rental payment is due and continue to monitor the account daily.
If your tenant has fallen behind in their rent, the sooner you know about it, the sooner you can attempt to resolve the issue and mitigate any financial loss.
Tenants should be made aware that there are also a number of public holidays over Christmas which means they will need to ensure their rental payments are made in advance to avoid any late payment issues.
It may be worth considering appointing a property manager who can oversee this task.
<ul>
<li>Tailored landlord insurance</li>
</ul>
Christmas can take its toll on the hip pocket of many tenants but having a risk management strategy in place, such as landlord insurance, can help ease a landlord’s concerns about receiving regular rental payments over the festive season.
Tailored landlord insurance policies often are specifically designed to cover loss of rental income in certain situations. A sound insurance policy should cover landlords for both malicious and accidental damage, their legal liability and the loss of rental income.
A standard building and contents insurance policy generally won’t cover landlords for many of these risks.
Carolyn Parrella is executive manager of <a href="https://www.terrischeer.com.au/" target="_blank">Terri Scheer Insurance</a>.
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Carolyn Parrella

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