Becoming a landlord isn’t as simple as securing a property, finding a tenant, and collecting rent – there are many other factors that come under the landlord umbrella. If you have never owned an investment property or had tenants before, you may not be aware of what that role fully entails.
Good property management practices you create from the beginning will ensure a smooth process for you as a landlord. We touch on some points below to help you on your journey.
Employ an efficient property manager
The most important step in the early stages of leasing out a rental property is employing an efficient and proactive property manager. Your property manager will be the main point of contact for your property, will select an appropriate candidate to fill the lease and organise any trades for any works that need to be conducted at the property. Your property manager will ultimately alleviate any stresses that come with being a landlord.
Understand the tenancy laws in your state
Read and understand the Residential Tenancy Act that applies to South Australia. The tenancy acts are specifically designed to protect the landlord and tenant under residential tenancy agreements.
Get landlord insurance
Like with any big purchase, insuring your property is a priority to guarantee you are covered for any unexpected events that may occur.
Landlord insurance policy will help cover for various events such as:
- Loss of income
- Any damage caused to the property, either malicious damage by people other than tenants and guests or accidental damage by tenants and theft brought about by tenants
- Rent default
- Natural events such as floods, storms or bushfires that cause loss of rental income due to the property being unhabitable
It is recommended that you discuss your options for landlord insurance with your insurance provider.
Consistent inspections are very important
It is highly advised that your property manager conducts regular routine inspections. This is where the property manager will inspect the building and advise of any damage or things that need to be repaired. These regular inspections will help you understand how well or how poorly your current tenants are maintaining the house and will give you better insight into extending the lease or increasing the rent in the future.
Ensure you market your property effectively
Marketing really is worth its weight in gold when it comes to advertising your property to perspective tenants. Investing in professional photography and a floor plan and listing your property online will ensure that your property stands out and is seen by the correct audience.
Consider allowing a pet at the property
It is very common in Australia that most households have a pet, and it is highly likely that perspective tenants applying for your property will be looking for a pet-friendly property.
Make sure you weigh out the pros and cons of allowing tenants with pets to rent your property. If you do decide to allow pets on your property it will increase the pool of prospective tenants and your property will become more desirable as it appeals to more people.
Choose what is best for your investment property. There is no right or wrong decision when deciding whether to allow pets or not. You may or may not have a property that is adequately suited to home a pet so make sure you do your research to work out if it’s feasible or not.
Application screening
Finding the right tenant for your investment property is very important as a good tenant will make your role as a landlord much easier. Screening potential tenants is crucial to find the candidate best suited for your property. You want to ensure the selected candidate will be able to pay rent on time and will take care of the home as if it were their own. When going through the potential tenant’s application it is important to note their rental and employment history. Ultimately, your property manager will handle the tenant applications and will guide you on their professional opinion on who you should select as your tenant.
If you’re interested in finding out how Fox Real Estate can best manage your investment property, contact our Business Development Manager for Property Management – Andrew Geppa, today.
Disclaimer: All information provided has been obtained from sources deemed reliable, however, we cannot guarantee the information is accurate and we accept no liability for any errors or oversights. Interested parties should make their own enquiries and obtain their own legal advice.