Landlord Rental Protection Plan Extension
If your tenant terminates the contract early, no worries about the plan, you have bought for 12 months. As long as there are no claims, this policy can be fully transferred to cover the next replacement tenant during the Landlord Rental Protection Plan period, provided that the tenant is qualified under credit check. The Landlord Rental Protection Plan will be counted based on the old rental price and Landlord Rental Protection Plan package. Take note that the Landlord Rental Protection Plan period will not be paused upon no tenancy.
- Landlord Rental Protection Plan is applicable for any unit rental from RM500 to RM5,000 only.
- On-Time Rental (OTR) is a feature that allows you to get your rental income on time even when your tenant pays late or stops paying. OTR payment can be activated up to 2 times continuously and will only be reset once a tenant pays their rent.
- Overstay Cash Defender is a feature that ensures you to still receive your monthly rental even if the tenant stops paying the rent while still occupying the house.
- Inconvenience benefit coverage is upgradeable upon request.
- Click here for the SPEEDHOME Product Disclosure Sheet.
If the second tenant early terminates the contract, no claims are made. You can extend the Landlord Rental Protection Plan again! However, the extension can be made until 23 months only.
The coverage amount will not reset upon the continuation of the Landlord Rental Protection Plan. Landlords can continue the Landlord Rental Protection Plan if claims have been made before. However, the coverage will be reduced.
Example Scenario:
Tenancy : 1 January 2020 – 31 December 2020 (12-month period)
Rental : RM1,000.00
Landlord Rental Protection Plan : Basic plan
Coverage :
Loss of Rental: Up to RM2000 (Subject to 20% excess)
Inconvenience Benefit: Up to RM1,000
Accidental Damage or Theft Coverage: Up to RM15,000
Case 1 – Minor Claim:
The tenant moved out early and failed to serve two months’ notice. However, the landlord manages to get a new tenant to replace the current tenant. The current tenant left a unit with door knob damage and unpaid utilities.
Loss:
Outstanding Utilities: RM100
Door knob: RM50
Claim from inconvenience benefit, and now the balance of inconvenience is RM850. How many the landlord can carry forward to the new tenant?
Coverage:
Loss of rental: up to RM2000
Inconvenience: up to RM850 (deducted from the previous claim)
Household contents damage: Up to RM15,000
For this case, the landlord may choose to continue the Landlord Rental Protection Plan to a new tenant and pay some prorated amount only. Coverage that carries forward to a new tenant is the balance only.
Case 2 – Major claim:
The tenant left the property and left unpaid rent for two months, unpaid utilities for RM800 and some cleaning for RM100.
Loss:
Rent : RM1600 (80% from total rent for basic plan)
Utilities : RM800
Cleaning : RM100
After this amount is approved and reimbursed to the landlord. Here is the balance of the Landlord Rental Protection Plan:
Loss of rental: RM0.00
Inconvenience benefit: Up to RM100
Household content: Up to RM15,000
For this case, the landlord is advised to buy a new Landlord Rental Protection Plan instead.
Landlord Rental Protection Plan Extension
If your Landlord Rental Protection Plan is still valid and your tenant early terminates the contract, you can continue for the next tenancy.
How about the cost & coverage?
- It will be prorated following the extended month of the new tenancy.
- If you have not made any claims, your coverage will be fully the same.
- If there is a minor claim, your coverage will be reduced.
Example:
Utility unpaid RM200, Inconvenience benefit’s coverage RM1000
Your new coverage for inconvenience benefit is RM800 - If there is a major claim, we advise renewing the Landlord Rental Protection Plan.
Example:
Rent Loss: RM1000
Utilities: RM800
Cleaning: RM100
Your new coverage will be too low.
Important:
- Your validity period of the current Landlord Rental Protection Plan will not be paused upon no tenancy.
- The new tenant must be qualified under credit check.
- Your plan can be multi-extended for up to 23 months.
Short term Tenancy
How to calculate?
1. Surcharge % x Rental Price = Surcharge amount.
2. Tenant may choose to pay a lump sum in the first month or divide over the tenancy.
