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Tips for Landlords
Below are some general tips and information relevant to being the owner of an investment property. Click the titles of each section to expand the text.Choosing a Managing Agent
- Performance and Fees
- Marketing your Property
Interview several agents and compare their service as well as their fees. The best agent is not necessarily the one with the cheapest commission - remember this is one of your most important assets, so you must feel trusting in your agent. It is also worth asking your agent how much staff rotation they have had in the past twelve months. A high turnover of property managers is not good and is a telltale sign of an underperforming or problematic deparment.
Make sure you choose an agent that is going to do what they say they will do! So many agents promise the world but don’t deliver on the results. Does the agent really conduct 2 routine inspections a year? Does the agent completely check the references of each prospective applicant? These two promises are extremely important to help mitigate any risk with regards to your property’s upkeep and tenant selection. There is no excuse to ever miss a routine inspection or to not check all references – this is what your property manager is paid to do!
Make sure you choose an agent that is going to do what they say they will do! So many agents promise the world but don’t deliver on the results. Does the agent really conduct 2 routine inspections a year? Does the agent completely check the references of each prospective applicant? These two promises are extremely important to help mitigate any risk with regards to your property’s upkeep and tenant selection. There is no excuse to ever miss a routine inspection or to not check all references – this is what your property manager is paid to do!
Make sure your agent holds open-for-inspections and private appointments at times that suit potential tenants, not at times that suit them. Too many agents simply do not promote properties after hours or on weekend. But this is when prospective tenants are mostly available!
Advertising your property correctly is so important. Do some research by searching for similar properties to yours on web sites like realestate.com.au. Check the quality of photography and text copy. If you want, also make an enquiry as a potential tenant – the response you get will be a good indicator of how their tenant enquires are handled.
Advertising your property correctly is so important. Do some research by searching for similar properties to yours on web sites like realestate.com.au. Check the quality of photography and text copy. If you want, also make an enquiry as a potential tenant – the response you get will be a good indicator of how their tenant enquires are handled.
Leasing your Property
- Property Presentation
- Initial Maintenance & Inclusions
- Price per Week?
Presentation of your property is very important. A well presented property will generally attract good quality tenants and have a high impact on its initial internet advertising. Photography with furniture will generally make a room look larger and also give tenants a truer perspective of the space available, however, some furniture if mismatched in colour, cluttered or old may degrade presentation.
A fresh coat of paint, particularly in apartments, is inexpensive and can bring new life to a property. The smell of fresh paint during open-for-inspections is always appealing to prospective tenants.
Make sure the electricity is connected for lighting reasons. This greatly improves photos and also allows agents who offer after hours appointments the ability to show your property in the evening. This is particularly important during the winter months as some properties can be dark even in the middle of the day.
A fresh coat of paint, particularly in apartments, is inexpensive and can bring new life to a property. The smell of fresh paint during open-for-inspections is always appealing to prospective tenants.
Make sure the electricity is connected for lighting reasons. This greatly improves photos and also allows agents who offer after hours appointments the ability to show your property in the evening. This is particularly important during the winter months as some properties can be dark even in the middle of the day.
If there is maintenance to be attended to make sure it is completed before showing potential tenants.
We have the foresight to see past to-be-done maintenance, but in our experience, this simply puts some prospective tenants off.
All appliances and devices in a property must be in good working order. Be sure to let your estate agent know if any items are known to be not working before beginning to search for a tenant. Also be sure to tell your agent if anything in the property will not be included in the tenancy. Such items may be garden furniture for example.
We have the foresight to see past to-be-done maintenance, but in our experience, this simply puts some prospective tenants off.
All appliances and devices in a property must be in good working order. Be sure to let your estate agent know if any items are known to be not working before beginning to search for a tenant. Also be sure to tell your agent if anything in the property will not be included in the tenancy. Such items may be garden furniture for example.
Be realistic on price, it is better to get a tenant quickly at a good rental price than to have your property vacant for several weeks. This can cost you money.
Example:
A property is advertised at $420 per week but the market price is more like $400 per week. If this property sits vacant for 4 weeks, it will cost the landlord $1680 in lost rent. This equates to a $32.30 loss per week over 1 year. If the property was advertised at the market price and let in the first week (due to market demand), the landlord will actually be $640 better off over one year even though the rent is lower.
Example:
A property is advertised at $420 per week but the market price is more like $400 per week. If this property sits vacant for 4 weeks, it will cost the landlord $1680 in lost rent. This equates to a $32.30 loss per week over 1 year. If the property was advertised at the market price and let in the first week (due to market demand), the landlord will actually be $640 better off over one year even though the rent is lower.