Different landlord – similar issue
This is another issue that I have posted warnings on several times over the past few months.
It was reported recently that a Perth landlord was hit with a huge power bill after tenants ran a cannabis grow-house from his property.
The power bill was a whopping $85,000.
The report suggested crime gangs are most likely to target private landlords and will often provide a large upfront cash payment to cover several months of rent. While this is obviously good for cash flow reasons, there are heightened risks if regular full inspections are not made.
The way they organise themselves such a payment allows time for tenants to set up the growing operation.
On a different point, why a landlord would retain the electricity account in their name is beyond me.
Any landlord caught this way could face significant losses.
Apart from the damage and clean-up costs, affected landlords are exposed to loss of rental income while the home is being repaired, as such it can have a devastating financial impact.
Landlord’s need to protect their valuable investment and income stream with a quality policy designed specifically for landlords. The cost of insurance is a legitimate tax deduction and my strong advice is to seek the advice of a quality insurance broker.
Having said this, picking the wrong tenant who racks up a huge electricity or water bill is typically considered a business risk that is not insurable.