Three tips investors must know before renting out their property
A leading property management expert has identified three key areas landlords can address to ensure they get off to the best possible start with a new tenant and their property manager.
With rents still on the rise around the country, property investors could be excused for thinking the rental income will look after itself.
But with mortgage repayments devouring much, if not all, of that extra rental income, it can pay dividends to enlist a property manager and adhere to some essential tips to maximise rental returns from the outset of the investment.
Kirsty Pilcher, Head of Department – Property Management, aussieproperty.com, has identified three vital components to ensure a rental property is best placed to attract the right tenants, retain its value and capitalise on record low vacancy rates and a tight rental market.
Set the standard early
Presenting your property to the highest standard before a tenant has been secured has many benefits.
Your advertising photos will look fabulous and you are more likely to attract a higher quality tenant who is looking for a well-presented home.
However, something not often considered by an owner is that when a property is handed over at the start of a tenancy, if this property has been professionally cleaned and the gardens recently attended to, it sets the standard for all of the following routine inspections and ultimately the final inspection.
The tenants must continue to present the property to the same standard and return the property in the same condition when the tenancy comes to an end.
If the tenant chooses not to maintain the same standard throughout the tenancy, this is obvious and can be addressed by your property manager, usually at the tenants’ expense.
Prepare a maintenance budget
Maintenance issues at your investment property can be costly and may come at a bad time.
Under the Residential Tenancy Act WA, for example, reported maintenance must be attended to within certain timelines. An owner is obligated to meet these timeframes.
Having a maintenance budget allows your property manager to organise repairs in a timely manner and also service appliances regularly to help avoid emergency maintenance situations arising.
Properly maintaining a property will also go a long way to eliminating a potential source of conflict between landlords and tenants.
Have proof of ownership ready for your property manager
Under the Residential Tenancy Act your property manager must confirm you are the owner of the property being rented out.
We cannot begin the process of managing your property without this.
The best way to prove ownership is to provide a copy of your Certificate of Title.
Your property manager can order a new copy of this, however, there are costs involved.
To avoid that cost and any delays with getting your property advertised, have your copy ready to pass on at the time of signing your Management Authority.
In addition to these property management tips, property investors looking to buy a rental property should also be aware of these top three rental market factors when trying to pinpoint that successful investment, as well as the need to have adequate insurance coverage.