Landlord Insurance NSW

What additional benefits can NSW landlord insurance cover?

As well as the items listed above, you might want to get cover for the following:

• Tax audit costs. Landlord insurance can cover the fees associated with a tax audit by the ATO.
• Legal liability cover. If you're accused of negligence or of hurting a tenant, legal liability can cover you for legal fees.
• Replacement of locks. If a tenant doesn't hand over the keys, this can pay to replace locks.
• Removal of tenant's possessions. Some policies can pay to remove the tenant's possessions from the property if you've made a claim for loss of rent.

Is landlord insurance compulsory in NSW?

No, while it's not compulsory to have landlord insurance in NSW, as a landlord you are responsible for any damage and public liability for injury or loss on your property. Landlord insurance can protect you against the financial burden you face should there be any damage to your building, loss of contents, rent default, or death or injury on your property. And while it isn't required at a state level, some local councils require a level of legal liability, which is included with any level of landlord insurance.

Is there anything different about being a landlord in NSW?

Landlord insurance is pretty much identical across the country. However, there are some differences between states around the rights and responsibilities of landlords and tenants and these could have an impact on insurance claims down the road.

Here's what's different in NSW:

• Bond and advance rent. As a landlord in NSW, you are allowed to collect four weeks bond and two weeks advance rent.
• Rent increases. If the lease is a fixed-term agreement of less than two years, you cannot increase the rent unless you've added a special term to the contract explaining exactly why the rent will increase and how the increase will be calculated. If it is a fixed-term agreement of more than two years, you can increase the rent at any time but only once every 12 months. In all cases, including periodic leases, you must give 60 days notice.
• Ending a tenancy. If you want to end a fixed-term lease, you have to wait until the lease is up and tell the tenant at least 14 days before that date. On a periodic lease (ie, month-to-month), you have to give your tenant a 90-day notice if you want them out. It's different if they breach the contract, in which case you only need to give them a 14-day advance warning regardless of what type of lease they are on.
• Pets. There are no laws saying tenants can't have pets, but as a landlord, you do have the right to ban pets as long as that is written into your rental agreement.
• Access for inspections. You're allowed to conduct four routine inspections every 12 months, but you'll need to give your tenant a written notice at least seven days in advance of the inspection.

What are a landlord's responsibilities?

Your responsibility as a landlord is essentially to provide a habitable apartment, house or property for a tenant. Habitable means the property is free of hazards and defects, is fit to live in and complies with all NSW state and local building and health codes. These responsibilities include the following:

• Maintaining structural components and a reasonably weather-protected unit
• Providing the necessary heat, electric and hot and cold water facilities
• Making any requested repairs promptly
• Inspecting the property each time it is leased to determine whether it meets safety and adequate living standards
• Giving notice before entering a rental unit, except in cases of emergency
• Abiding by all agreements made in the signed lease
• Providing 15 days written notice of any changes to a month-to-month agreement
• Adhering to the legal eviction process if evicting a tenant
• Advising your tenant of their legal rights and responsibilities when taking out a lease.

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