What are my obligations as a landlord?
Initio’s landlord insurance policy requires landlords to meet the ‘Landlord Obligations’ for cover under the Landlord Protection and Meth Contamination extensions.
Key Takeaways
- Landlord obligations apply to the Landlord Protection and Meth Contamination extensions of the policy, not to the standard house insurance cover.
- If you use a property manager, they will usually complete the landlord obligations on your behalf. Otherwise, you are responsible for meeting them yourself.
- To meet the landlord obligations, you must carefully select tenants, keep records of tenant checks, complete inspections at least every three months and between tenancies, and retain written records and photographs of inspections.
- You must monitor rental payments and take appropriate action if rent falls into arrears, including following the required Tenancy Tribunal process where applicable.
- If the landlord obligations are not met, tenancy-related benefits such as meth contamination or tenant damage claims may be affected, but the remainder of the policy continues to provide cover for insured events such as natural disasters.
- Some obligations change depending on how the property is occupied, including employee accommodation, holiday homes used for short-term paying guests and family members.
Landlord’s Protection
- Malicious damage by tenants, and associated loss of rents.
- Theft by tenants.
- Loss of Rent following a tenant vacating the property.
- Loss of Rent following a tenant eviction for non-payment of rent.
- Meth Contamination, and associated loss of rents.
If a landlord has a property manager, it is usually the property manager’s responsibility to meet the obligations. Otherwise, the landlord will need to meet these themselves.
If you don’t meet the Landlord’s Obligations all the standard cover included in the policy remains in place. You are still covered for natural disasters such as an earthquake as this does not involve the risk of the tenant. However, if you do NOT meet the obligations but then lodge a claim for meth contamination at your property, your claim may be declined.
Summary of Landlord Obligations
| Requirement | What you need to do |
|---|---|
| Tenant selection | Complete tenant checks and obtain references |
| Record keeping | Keep records of tenant checks |
| Bond and rent | Collect the required bond/rent in advance |
| Property inspections | Inspect every 3 months and between tenancies |
| Inspection records | Keep photos and written reports |
| Rent monitoring | Monitor arrears and contact tenants when required |
| Tenancy Tribunal | Apply where required under the policy obligations |
Landlord’s Obligations Explained
You, or the person who manages the tenancy on your behalf, must:
- Exercise reasonable care in the selection of the tenant(s) by at least obtaining satisfactory identification and written or verbal references for each adult tenant and when a reasonable landlord would consider it appropriate also check their credit and Tenancy Tribunal history.
- Keep written records of pre-tenancy checks conducted for each adult tenant, and provide to us a copy of these if we request it.
- Collect a total of 3 weeks’ rent in any combination of rent in advance and bond that will be registered with Tenancy Services.
- Complete an internal and external inspection of the home at a minimum of 3-monthly intervals at the relevant residential dwelling upon every change of tenant(s).
- Keep photographs and a written record of the outcome of each inspection, and provide us a copy of these if we request it.
- Monitor rents on a weekly basis with written notification being sent to the tenant(s) whenever rent is 14 days in arrears, together with a personal visit to determine if the tenant(s) remains in residence.
- Make application to the Tenancy Tribunal for vacant possession in accordance with the provisions of the Residential Tenancies Act 1986 if:
(a) the rent is 21 days in arrears, or
(b) you become aware of any illegal activity by the occupant(s) at the home, or
(c) intentional damage to the home is caused by the occupant(s).
Frequently Asked Questions
What if the home is occupied by employees as part of their employment package?
If the home is provided to and occupied by your employee as part of their employment package with you, then obligations 3, 6. and 7.(a) do not apply.
What if this is my holiday home which is occasionally let to short term paying guests?
If the home is occupied by short-term paying guests such as a AirBnB or BookaBach, then the obligations do not apply to have cover for damage and theft by guests.
What if the home is occupied by Family Members?
You would need to decide if a Landlord policy is the right product for you. Are you wanting to cover Loss of Rents and Intentional Damage by Tenants? Does the family member pay rent? Get in touch with our support team to discuss the available options.
Protect your rental with initio’s landlord insurance
Related Articles:
- Loss of rent FAQs for landlords
- What does landlord insurance cover?
- How to claim for intentional damage by tenants
- How property use affects your cover
- Are you thinking of renting our your home and becoming a landlord?
- Can I complete remote property inspections?
Written by Megan Fisher, Head of Marketing at initio.
Megan has been with initio since 2022 and has over 20 years’ experience in marketing and product strategy. She works closely with initio’s claims and customer experience teams, giving her a first-hand view of how insurance works when customers need it most.