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When Property Investment Goes Wrong

Imagine this scenario

Dean is a property investor. He and his family live north of Brisbane and own four investment properties across South East Queensland, from the Redcliffe Peninsula to the New South Wales border.

He invested in property to build his retirement investment portfolio.

But like any investment, buying property was a risk, so he insured his rental with a Terri Scheer landlord insurance policy.

What went wrong?

Dean owns an investment property in Texas, Queensland. The standalone house sits on a large block, offering four bedrooms and two living areas in a largely agricultural region.

He engaged with a property manager to rent out the house and selected a young family who came with a good rental record and references as his new tenants.

Everything started well, with the property kept in neat and tidy condition, regular property inspections easily passed and the rent always paid on time.

However, things started going downhill after the tenants’ relationship broke down. When they moved out at the end of their 12 month lease, Dean’s property manager found the rental was not in a good state.

Carpet had been ripped out, walls dented and scratched, and pets kept at the property had caused damage inside the house.

While rent had continued to be paid during the tenancy, Dean and his wife faced more than three months of lost rental income while the property was repaired and ready to be re-leased.

What action was taken?

As soon as the tenants moved out, Dean conducted a thorough inspection of the property and made a note of everything required to be repaired before new tenants could move in.

He collected evidence by taking photographs of the property’s state and arranging quotes for repairs.

Photos taken by Dean’s property manager throughout the lease were also submitted as evidence to prove when the damage occurred and show the property’s prior condition.

How did insurance help?

Terri Scheer’s landlord insurance policy allowed Dean to claim for tenant damage and loss of rent.

The cost of securing repair work in a regional location was much higher than Dean expected, and the lack of available trades led to delays in reletting the property.

Without insurance, Dean would have been more than $6,000 out of pocket financially, however, his landlord insurance policy provided specific coverage for these risks.

When initially deciding to put in a claim for the carpet, Dean’s Terri Scheer claims manager explained the policy in detail and helped him to maximise the claim by including other damage covered by his insurance policy.

The claim included multiple insurable events, none of which could have been foreseen when his tenants entered the property.

While the majority of tenants do the right thing and respect their landlord’s property, some tenants unfortunately do not.

When Dean’s tenants left the property untenantable, it impacted his financial position. While rent isn’t being received, the mortgage and bills still need to be paid and costly repair works carried out.

Having a landlord insurance policy provided Dean with coverage for a significant sum of money.

Why choose Terri Scheer for landlord insurance?

Terri Scheer is Australia’s leading landlord insurance specialist, offering dedicated policies to suit the specific risks landlords face. Part of the Suncorp Group, we insure investment properties for more than 260,000 landlords across Australia.

That’s a major vote of confidence from Australia’s rental property owners.

Find out more about our policies here: terrischeer.com.au/landlord-insurance/

For further information, call 1800 804 016.


Insurance issued by AAI Limited ABN 48 005 297 807 AFSL 230859 trading as Terri Scheer. Read the Product Disclosure Statement before buying this insurance and consider whether it is right for you. Contact Terri Scheer on 1800 804 016 or visit our website at www.terrischeer.com.au for a copy. The Target Market Determination is also available.

The information is intended to be of a general nature only. Subject to any rights you may have under any law, we do not accept any legal responsibility for any loss or damage, including loss of business or profits or any other indirect loss, incurred as a result of reliance upon it – please make your own enquiries. This article has been prepared without taking into account your particular objectives, financial situation or needs, so you should consider whether it is appropriate for you before acting on it.

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