| Property investors and landlords have much at stake | | | | expects. Insurance companies want to be sure that |
| when it comes to protecting their assets. Their | | | | home alarm systems are installed properly before |
| livelihoods depend on making sure that their houses, | | | | offering you a discount. Be prepared to provide your |
| apartments and properties are safe from loss. | | | | security provider with a copy of these specifications |
| Installing security alarms on rental & investment | | | | if needed and check their website to see if the |
| property makes business sense, and provides more | | | | security alarms they install can meet insurance |
| than just home protection. | | | | requirements. |
| So, besides increasing security, what are the | | | | You'll probably also need to keep your security alarms |
| insurance benefits and tax breaks a property | | | | maintained in order to keep getting your annual |
| investor can claim? Let's look at these two financial | | | | discount. Annual alarm "tune-ups" have a small cost |
| incentives landlords and property investors have for | | | | when compared to the insurance savings. You can |
| installing security alarms in the investment properties | | | | check with your insurance provider for details on |
| they own. | | | | security alarm maintenance requirements. To help you |
| 1) Saving Money on Property Insurance, Contents | | | | remain insurance-compliant, security companies may |
| Insurance or Landlord Insurance | | | | offer deals that will help you save money on your |
| It can be difficult, particularly in the current economy, | | | | security alarm service calls. |
| to profit on investment property. Some property | | | | 2) Installing a Home Alarm Can Help Landlords |
| investors may view a home alarm system as "just | | | | Receive Income Tax Deductions |
| another home improvement cost," particularly when | | | | Did you know that the purchase and installation of |
| faced with other maintenance and upkeep costs. | | | | home alarm systems for investment property can |
| However, landlords and property investors should be | | | | sometimes be written off as a business expense, |
| aware that properties with home alarm systems may | | | | just like other home improvement or renovation |
| have lower home insurance, contents insurance and | | | | costs? The alarm installation, alarm service calls, and |
| landlord insurance rates. Property crime (like burglary) | | | | alarm monitoring costs may all be eligible as property |
| costs Australian insurance providers millions of dollars | | | | improvement expense deductions on your tax return. |
| annually, and an estimated 350,000 to 450,000 | | | | Landlords and investors should check with their |
| homes and properties in Australia experience crime | | | | accountant for specific details regarding tax write-off |
| every year. You can bet they are on the lookout for | | | | eligibility. Tax breaks, like insurance discounts, usually |
| things that can mitigate that risk. | | | | depend on meeting specific criteria (in tax law). |
| Property crimes which cost insurance companies | | | | Spending a little bit of time researching may save |
| money include burglary, vandalism (like broken doors | | | | hundreds or even thousands, so just like in buying a |
| and windows) and graffiti. Home alarm systems are | | | | property, it really pays to do your research. |
| definitely an effective deterrent to would-be | | | | Back to Base Alarm Monitoring for Your Investment |
| property criminals, as homes and properties with | | | | Property |
| security alarms are targeted less frequently by | | | | An important thing to remember when installing an |
| criminals than those without a home security system. | | | | alarm: security alarm monitoring may be crucial for |
| In fact, the benefits may go even further. A study | | | | insurance purposes, not to mention your own peace |
| by Rutgers University indicated that "a burglar | | | | of mind. Varying levels of service are available, |
| alarm...not only protects the home without displacing | | | | depending on your needs. Packages typically cover |
| burglary to nearby houses, but, in fact, also provides | | | | 24-hour, 7-day service to ensure that regardless of |
| these other houses with protection from burglars" as | | | | the time of day or year, someone is always looking |
| a side-benefit. | | | | out for your property and valuables. |
| Insurance providers must pass on the cost of | | | | Basic packages include having a security |
| property crime to their customers. To avoid | | | | representative phone whenever an alarm is tripped. |
| burdening their clients with that cost, they prefer to | | | | Make sure that your alarm monitoring control room is |
| reward customers who are proactive in trying to | | | | Grade 1A, meaning that police may be summoned |
| prevent property crime in the first place. That's why | | | | under certain conditions, particularly if the premises is |
| many insurance providers offer discounted insurance | | | | considered high-risk. |
| rates on investment property and houses that have | | | | Alarm monitoring packages can be tailored according |
| security alarms installed - the perceived risk to them | | | | to your unique needs. They may even vary from |
| is less. | | | | property to property in your portfolio, since different |
| The rate of insurance discount varies according to a | | | | dwellings require different levels of security. |
| number of factors. Security alarms usually need to fit | | | | In Conclusion |
| specific criteria as defined by the insurance provider. | | | | Property Investors who decide to add security |
| These criteria may include home alarm system type, | | | | alarms to their investment property should document |
| where sensors are placed in the home or property | | | | their purchases. Save all receipts and proof of |
| and whether the system is security company | | | | installation. Also, make sure the documents you |
| installed. Your property insurance company may also | | | | receive contain information about the type of alarm |
| require that any alarm systems be monitored back to | | | | being installed - there are may different brands of |
| base by a security company. | | | | home alarm systems. |
| Check with your property insurance provider before | | | | As a busy property investor, you of course have |
| you purchase, install or upgrade security alarms on | | | | much to attend to already. Contact a security |
| your investment property. Your company will be able | | | | company you trust and see what they can do to |
| to provide you with the right details. Home alarm | | | | help shoulder the load of looking out for your assets. |
| systems that don't meet those specifications may | | | | This small amount of work can net a significant |
| not be eligible for discounts. | | | | reduction in your expenses while providing you with |
| It's also important to make sure that your security | | | | the certainty and peace of mind you need - and |
| company understands what your insurance provider | | | | deserve. |