Let your property manager help you maximise your rental…
Whether you are starting a property portfolio or looking at investing in more properties, the simple question remains – how do I maximise my rental return/s?
As a landlord, it pays to do your research and talk to the experts to ensure that your property is constantly occupied and kept in good condition. Our advice on how to be a successful landlord includes the following:
• An empty property equals loss of rent, so try to keep your property tenanted 100% of the time. Easier said than done? Not really. If y
ou have purchased an empty property or your tenants have given notice to vacate, start working on your marketing as soon as you can. We will discuss with you the best way to attract new tenants and the marketing strategies that are available to you.
• Be a proactive landlord and regularly maintain your property and ensure that repairs are seen to as quickly as possible. Not only will the tenant be less likely to vacate the premises but also a well-kept property is easier to lease than a poorly maintained one.
• If your property is vacant and it needs an up-grade, now may be the time to do it – major overhauls that increase the value of your property will also increase the rent that you can command. Talking to us before you do major renovations will help you decide what type of rent you can command and whether it is viable taking into consideration the area in which the property is situated and other economic factors.
• Let us manage all of your calls regarding repairs and emergencies. It takes a lot more time than you think, especially when you start charging your time at an hourly rate. We also have on hand a list of trusty tradespeople to suit all situations.
• How do I know what to charge? Let us guide you with our knowledge as we take into account location, proximity to amenities, condition and size of your property and what the current market will allow you to charge. Don’t under-price or over-price your property as both can lead to vacant periods.
• Worried about having to deal with difficult tenants? We can do that for you! We have a thorough working knowledge of tenancy laws and good mediation skills. Being neutral also allows us to deal with the issues quickly and without emotion. We can also screen prospective tenants for you and let you know if they have been problem tenants in the past.
A good landlord will listen to his/her tenants and act promptly when issues arise.
Strange story, but true...
We recently heard a rather funny story – well, it is not so funny for the people involved but it makes a great party story!
A tenant leased a property on acreage and was given permission by the landlord to keep horses on the property. Most people would expect that a horse would be securely housed in the fields but not this particular horse. The tenants had left the front door open to the house and the horse had decided to take a stickybeak INSIDE the house.
Not only did the horse have a look around but also by the time the tenants discovered it was in the house, it had decided to go to the toilet. And no, not actually in the toilet but rather on a brand-new cream carpet in the lounge! I kid you not. As hilarious as the visuals of this story are, it is a real situation with financial repercussions. So who is liable for the replacement/cleaning of the carpet?
Carolyn Majda, Manager, Terri Scheer Insurance advises that:
• Damage to a rental property caused by a domestic pet or an animal that is housed on the property is often not covered under landlord insurance policies.
• Landlords should check with their insurer to establish whether they are covered, and it is recommended that property managers and landlords closely monitor whether animals are present at the property by conducting regular property inspections.
• If an animal is not present at the time of the inspection but it is suspected that one may be housed at the property, look for fur on furniture and bedding, water bowls and urine stains on the carpet and outside.
• Neighbours are also usually more than happy to let you know if the tenant has a pet.
However, if a debate arises as to who is liable, it is best to contact your local tenancy tribunal.
Superannuation alert
Property investors should take care when using their superannuation funds to improve their investment property.
Although the Australian Taxation Office (ATO) has warned that some funds face big fines (up to $220,000) for breaches of the rules, some super experts say the rules are not clear enough. The SMSF Professional Association is urging the ATO to provide examples of the differences between repairs and improvements.
If you are considering using your superannuation to fund repairs in your investment property it is wise to get independent advice beforehand.
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