It’s easy to treat insurance with a hands-off approach. Once a policy is signed and dated, it can feel like your rental property is sufficiently protected. However, a passive attitude towards your property investment can be an expensive mistake. Thousands of dollars in property insurance claims are voided every year because of one simple slip: poor property maintenance.

This is something we’ve seen time and time again. If rental property owners don’t have a strong understanding of their insurance policies and their obligations according to the Residential Tenancies Act, they can open themselves up to unnecessary risk. If you read the clauses on your insurance policy, you’ll likely find that claims can be denied due to lack of maintenance or because preventative action was not taken as soon as practicable. While exact clauses may differ, there are some general property maintenance rules that I recommend to all rental property owners.

1. Budget For Maintenance

Setting aside adequate funds for property maintenance is essential. Even if it may not seem urgent, it’s important to address issues as quickly as possible. It can take just one storm to turn a slightly blocked drain into a flooded, uninhabitable property. We’ve seen it happen! Choosing not to act on maintenance requests can also cause friction with the people living in your property and lead to exemplary damages awarded against you at a Tenancy Tribunal hearing. If finances require you to wait, the consequences can be costly.

‘If there is friction in your relationship, your rental customer may be less likely to contact you when there are maintenance issues’

2. Choose The Right Person For The Job

As a rental property owner, it can be tempting to fix up property maintenance issues yourself instead of paying someone else. But DIY is not always the best approach. Insurance policies often exclude any damage caused by faults, defects, errors or omissions in workmanship, construction and materials. No matter how handy you are, the decision not to use a certified plumber or electrician can leave yourself, your property, and the people living in it at risk.

3. Keep Clear Records

Keeping clear maintenance and inspection records is crucial. In the instance that an issue is raised by an insurance company, it’s important to have documentation showing that you’ve fulfilled your obligations as a property owner. Read your policy’s clauses and make a note of your requirements. If you need to inspect your property every 90 days, make sure that you confirm the date of each inspection in writing.

Building these little habits will be incredibly beneficial to your experience as a rental property owner. Similarly, any maintenance carried out should be well documented and kept within easy access.

4. Build Strong Relationships

Developing strong and positive relationships with the people living in your property is key. Not only does it create a better rental experience for all, but it also ensures that a line of communication is kept open. If there is friction in your relationship, your rental customer may be less likely to contact you when there are maintenance issues. In my experience, the best way to build trust is to respond to any queries promptly without judgement and to be transparent about anything that affects both parties. If you’re unable to fix an issue immediately, let your rental customer know. Setting realistic expectations will always result in the best outcome.