One major insurer's House policy contains the following Condition which goes beyond just inspections. Any breach could void an insurance claim where the specific requirements become material and apply to both the owner and any property manager.
Landlords Obligations
You, or the person who manages the tenancy on your behalf, must:
- Exercise reasonable care in the selection of tenant(s) by at least obtaining satisfactory written or verbal references, and
- Collect:
a. At least 1 week's rent in advance, and
b. At least 2 week's rent in the form of a bond that will be registered with Tenancy Services, or
c. Any combination of (a) and (b) to a total of 3 weeks' rent, and - Complete an internal and external inspection of the property at a minimum of 4 monthly intervals and upon every change of tenant(s), and
- Keep a written record of the outcome of each inspection, and provide us a copy of the record if we request it, and
- Monitor rents on a daily basis with written notification being sent to the tenant(s) when the rent is 10 day in arrears. If rent is not received then a second letter must be personally delivered to the tenant(s), at which point in time it must be ascertained whether or not the tenant(s) is/are currently is residence and
- Make application to the Tenancy Tribunal for vacant possession in accordance with the provisions of the Residential Tenancies Act 1986 once the rest is 21 days in arrears.
Source: Sloan Risk Management Services Ltd - Risk Management Newsletters No. 210
www.sloanrisk.co.nz