scheer tips March 2012 report is required for malicious damageAccidental Damage, claims. Wear and tear and poor housekeeping areMalicious Damage, not generally covered in an insurance Deliberate Damage: An act that will alter policy, even where a property may beDeliberate damage and the current state of an item, however the brand new prior to being occupied by act is carried out without any spite, malice tenants. As a Property Manager, you canwear and tear. What is or vindictiveness. An example is putting monitor this during routine inspections andthe difference? picture hooks into walls without outline to the tenants at the outset of the permission. This is not a vindictive act, it Lease the expectations of cleanliness, is however a deliberate action but maintaining the property etc. Ensure thatA common query we often hear from generally with the intent of making the they are aware that any damages orProperty Managers and Landlords is ‘what property more homely. maintenance is reported to your officeis accidental damage and how is this immediately and that these are rectified indifferent to malicious damage, deliberate Wear and tear: Damage which occurs a timely manner.damage and/or wear and tear?’ naturally and inevitably simply because people reside in the property. Wear and Landlords should expect fair wear and tearFrom an insurance perspective, we define tear occurs just as much in an owner to their property, as would happen in anythem as per below: occupied property as it does in a rental home that is being lived in. property and may include scuff marks onAccidental Damage: An unexpected or walls, carpet in walkways appearing worn,sudden loss. This is generally something small marks on lino etc.that is an accident and not planned orintentional. Examples include spills on Another area of contention sometimes cancarpet and damage to furniture. be ‘poor housekeeping’. This is where a tenant maintains a property in a poorMalicious Damage: Damage which was condition but where no damage hasmotivated by spite, malice or occurred. This can include tenants who dovindictiveness with the intention of causing not clean up after themselves, who don’tdamage. Examples include holes kicked/ air their house, who don’t regularly cleanpunched in walls and doors, graffiti and areas such as carpets, ovens anddoors knocked off their hinges. A police bathrooms etc.Comments from CarolynIt’s March - time to celebrate the best of the best in Australian Real Estate. We are very much looking forward to celebrating thesuccess of Property Managers at the REIA Awards for Excellence in Darwin later this month.This month we’re celebrating the efforts of Property Managers. The Property Management division of any Real Estate Agency isgenerally the constant cash flow that keeps the business ticking along during down turns in sales. Sadly, it often seems the only timethe value of the Property Management department is recognised is during a down turn in sales. There are savvy property managerswith an entrepreneurial spirit in the industry who have recognised the value in focussing only in managing investment properties ratherthan sales and who have opened their own businesses to do just that - we wish them well; there is a lot of value in a business whichfocuses on doing one thing better than anyone else. As a property investor myself, I wouldn’t dream of trying to manage my ownproperty, I just don’t have the time for it and I know it’s in very safe hands with my wonderful Property Manager.Terri Scheer continues to support and promote property management through sponsorship of major events focused on propertymanagement. You may have heard our new radio ads where we tell people to “talk to their Property Manager” about landlordinsurance, the reason for this is two fold, 1) to prompt those who manage their own property to think about appointing a PropertyManager and 2) to prompt those who don’t have insurance to talk to their Property Manager about it - it’s much easier for you whenthe Landlord broaches the subject with you. We’ll also be at the LPMA 2012 Forum at Jupiters on the Gold Coast at the end of April.We’ve been part of the LPMA Forums since their inception and it’s been fantastic to watch them grow in both numbers of attendeesand in quality of speakers. LPMA is all about excellence in property management and we encourage those who have been thinkingabout attending to do so - every opportunity to learn should be grasped.As always, I welcome your feedback about anything at all to do with Terri Scheer, email me at email@example.com.To all the finalists in the upcoming national awards, well done on making it to the National Awards; it’s great recognition of yourefforts. Warm regards, CarolynWe are happy for you to use any of the information provided to you in scheer tips for your own newsletter. You should however, acknowledge that the information was provided by Terri ScheerInsurance otherwise you might be at risk of providing advice. Please contact Belinda Butler firstname.lastname@example.org if you need further advice.Terri Scheer is happy to provide you with this information. However, if you would rather not receive future issues please let us know and we will delete you from our distribution list.
scheer tips A recent claim Leading Property Managers The benefit to the Landlord in this situation was that we were able to of Australia 2012 Forum We have recently dealt with a determine which damage the tenant situation where the tenant absconded did and what damage the unknown We are proud to support and be a sponsor of this from a rental property owing rent as person did. This was due to the event and believe that your team may benefit well as having caused damage to the detailed Exit report the Property enormously by attending. property. Damages included stained Manager had completed. The The LPMA 2012 Annual Forum will be held at carpets, holes in walls and writing on landlord was also able to be paid loss Jupiter’s Hotel and Casino on the Queensland many walls. of rent whilst the property was un- Gold Coast on Thursday 26 April and Friday 27 tenantable as a result of the April 2012 and is open to all industry practitioners Whilst the Property Manager was damages. across Australia and New Zealand. organising quotes for repair, there was a break in (by an unknown When claiming for damages it is For more information about the LPMA 2012 person) who painted graffiti on the important to have Entry reports, Forums, visit www.lpma.com.au/forum or contact external walls of the house, smashed Routine Inspection reports, colour Dixie Walters at email@example.com (02) 8507 windows and damaged the front door labelled photos and a detailed Exit 2428. in their attempt to break in. The total report from the final inspection. These damages exceeded $5,000.00. documents help us determine the extent of any damages and how they As the Landlord had a Terri Scheer may have been caused. Landlord Preferred Policy as well as Landlord Residential Building policy, Please remember if you have a both incidents of damage were situation at a rental property where covered. The damage by the tenant damage looks likely to exceed $2,000 was covered in the Landlord that you contact our office so that we Preferred Policy and the damage by can arrange an Assessor to attend the ‘unknown person’ was covered the property and review the damages. under the Landlord Residential Building Policy. Did you know that any landlords who sell their property or that they now occupy where a Terri Scheer policy was in place are entitled to a pro-rata refund of their insurance? Simply advise us by completing the Cancellation form on your CD and send it Did you know that Property Managers can through—we’ll do the rest! arrange cover online? Visit our new website: terrischeer.com.auDisclaimer: this publication is intended for general information only. Terri Scheer Insurance accepts no liability for any actions taken by any persons acting on any information contained within thisdocument. Advice contained within this document is general advice only and has not taken into consideration anyone’s personal financial needs or objectives. Any person considering a Terri ScheerPolicy should first consider the Financial Services Guide and Product Disclosure Statement prior to making the purchase decision.