Top 10 tips for Landlords

1. Keep your rental income up to date with the market. When interest rates, strata levies, and land tax rise, the landlord is left to carry the extra burden.  It is only fair and sensible to ensure the income generated by the property is at the market rate and not significantly below.
   
   
2. Avoid major costly repairs by tending to minor repair items. When it comes to repairs, a little expenditure today can save a lot tomorrow. Good quality properties attract good quality tenants and vice versa. A happy tenant is more likely to be a good payer. If the landlord does not look after the property, why should the tenant? Both the owner and the tenant have a mutual interest to maintain the property.
   
   
3. Make sure you are offering your vacant property at the current market value to avoid a lengthy and costly vacancy factor. Trying to increase the rent by a small amount can add up to a lot if the property sits vacant. Better to have a payer at a fair price than nothing at a dream price.
   
   
4. When you have a good tenant you keep the rent at market value. If rent increases are excessive, you can risk losing your good tenant. Your rental property is your investment and as such you need to be getting the correct market rent for your property. However if you increase the rent above market rent you may find that your tenant leaves and find that your property sits vacant for an extended period. A stable tenant that looks after the property as if it was their own and pays on time is far more valuable than a sloppy non-payer at a higher rent.
   
   
5. It is wise to obtain advice from your accountant before purchasing an investment property. Ensure you seek financial advice before entering the investment property market, see handy links.
   
   
6. Be sure to have landlord insurance. We always recommend obtaining a quote from an insurer you focus’ on investment property insurance. Your building insurance will not cover you in the unfortunate event your tenant defaults in rental payments or causes damage to your property with a cost exceeding the bond. While it is not a legal requirement that you take out a Landlord Insurance Policy, it is strongly recommended that you do so as soon as possible. Marriage breakdown, loss of job, illness or loss of a loved one, can see a model tenant change into a default tenant. It is always best to be prepared, see handy links.
   
   
7. Although sometimes difficult, it is a good idea not to become emotionally attached to your property. An investment property should be treated as such.  Some landlords treat it as though someone else is living in their home and become too emotional about the property. Consider your investment property as a ‘Bricks and Mortar’ savings account.
   
   
8. Ensure that the appropriate checks are carried out on all prospective tenants at application stage. The large majority of default tenants are conditioned to be just that, and usually have a history of default. It is so much better to have a slightly longer vacancy than to have a non-payer that abuses the property.
   
   
9. Maintain a professional relationship with your tenant, to avoid any misunderstandings. It is always in your best interests to uphold a professional relationship with your tenants to avoid any potential communication issues that may arise. Remember, they are the ones paying the rent and you want to keep them paying the rent.
   
   
10. The top 10 tip which will take care of all the above is – engage the services of a professional property manager. By engaging the services of a professional Property Management Agency you can take all the hassle out of managing you investment property and make sure you get the most out of your investment.