All Around Realty Property Management Tips for Landlords: Property Management on the Sunshine Coast and Moreton Bay Region.
Remember-The agent you have appointed works for You.
- Have you ever had damage done to your property and the tenant has left and received their entire bond back and you are left footing the bill to repaint walls where holes were patched or replacing smoke alarms? You are paying them for a service so if you have concerns seek out another agency.
- The cost of a good property manager may be a little more (normally less than a cup of coffee a week) but they are worth every cent as a cheaper property manager may cost you lost rent and a damage bill that can run into the thousands.
- If you decide to rent to friends or family, always use an agent. Having a middle person who knows the legalities makes things easier on you and your relationship. Relatives or friends don’t always protect your investment as you would hope. There are many stories where someone has helped another person out only to have their properties destroyed and rent unpaid.
- It is difficult to sell a property with a bad tenant in place particularly if the buyers are looking for vacant possession.
- Have a tax depreciation schedule completed prior to purchase, it will not only help you with your loan application but also it will help out at tax time.
- With Queensland being the most legislated state for the purpose of property management it will save you time, stress and money if you have a property manager in place rather than doing it yourself. A good agent knows the steps and documents to have in place should a tenant become a bad tenant and how to prepare for a tribunal hearing. Unfortunately, today, “I did not know” is not a defense that is accepted. A good agent is responsible for upholding the law, not you.
- When looking at buying an investment property, think long term never short term gains, the market can change in a matter of 3 months and is influenced by much more than what is occurring in the local area, even costs of fuel can dictate the price a property commands.
- Ensure if you have a good tenant in place that their lease is always updated and remains a fixed term, letting it lapse to a periodic term can leave you out of tenants and rent.
- If you have a good tenant be careful about the amount you increase the rent- having a good tenant that stays who looks after your property will make you more money than losing a good tenant and replacing them with a poor tenant.
- Buy a great tenant a Christmas gift and get the agency to deliver if delivery is not included with your gift. Everyone likes to be appreciated including your tenants.
- Should you allow pets as part of your tenancy agreement? A lot of families have pets these days so it will open up your choice of tenants. Ensure you have a pet agreement in place along with the tenancy agreement.
- Have your property treated for Pests and terminates and your carpets cleaned before letting a tenant move in. This will ensure that the tenant has to complete the same before the depart from the property and ensure they look after such things as carpets.
- Complete repairs and maintenance issues as soon as possible, you have paid a lot of money for this investment and there will come a time that you wish to sell. Keeping the property maintained over the years will cost you less than have to fix up everything to try and get a reasonable price when it comes to selling.
- The length of time a rental property is on the market will reflect how it is priced with comparable properties, how it is presented to prospective tenants and the demand from the market for properties such as yours. Very Similar to when you are selling your property. If your property is vacant for more than 2 weeks it may require a different strategy to that of a property with a tenant already in place in order to minimise vacancy periods. A reduction in rent may ensure you get the right tenant over a longer period of time.
- Ensure that all your tenants application is checked against databases such as TICA along with their ability to pay the rent on time and if they have had any tribunal hearings as a tenant. Many agents utilise these programs and it will save you heartache in the long run.
- Ensure you have both Building and Contents and also Landlord insurance on your investment properties.Landlord insurance is optional; however, it should be considered whether it is right for you. Landlord insurance covers you for tenant-related risks including loss of rental income and loss or damage to your contents and building by the tenant. There are hundreds if not thousands of horror stories about investors being left with huge costs due to little or no insurance cover. The cost of insurance far outweighs the cost of little or no insurance. If you have just purchased a property, the best time to start is straight away – especially if the property is vacant and being advertised for rent. As a landlord, you have a liability exposure from the moment you or your agent begins showing potential tenants through the property.
Bad things can happen to great tenants and a bad tenant is unpredictable.
Contact us for more information on how we can manage and look after your property and your investment income.