Surviving as a Landlord Strategies
Property investment can be precarious business on occasion, and as a landlord, there are certain obligations you should stick to. Do this to protect yourself against likely expenses and liabilities!
9 Strategies for Surviving as a landlord are:
1. Seek Financial Advice
First of all: Seek financial advice before going into the property market. What’s more, don’t get guidance from your broke uncle who had a bad experience in real estate once, get professional advice.
Knowledge is power, and the more you think you know about your financial situation, the better you’ll be able to manage your options.
2. Deal with it like a Business
Consider your investment property as a ‘blocks and mortar’ savings account, instead of another person is living in your property. Don’t become emotionally attached – investment is a business matter and ought to be treated as so.
3. Get Landlord Insurance
This is such a significant and underrated factor to property investment. Landlord insurance covers you for the financial risk and possible losses under various conditions.
They range from water damage, tenants who fall into rent arrears, tenants who flee from the property, abrupt demise of a tenant, plus many more. The legalities of your landowner obligations can in some cases become costly; so please insure your property.
4. Know your Rights
It’s important that you are familiar with your states tenancy legislation to guarantee that you are well informed, which will be especially useful for conflict resolution. This is where expert advise from a property manager comes into play – A great property manager will know the legislation inside out and back to front.
5. Don’t Overestimate Rent Rates
It’s imperative to keep your rental income expectations in line with the current property market. This means not inflating the price drastically in the wake of doing renovations and/ or property improvements.
You will have the option to increase your price somewhat if the property needs a makeover, yet don’t anticipate that tenants should pay an essentially higher sum since you spent big bucks on fixing the property up.
Additionally, lower rent prices are directly connected to lower vacancy rates, and there are tax benefits to negatively gearing your property.
6. Ensure Appropriate Checks are Carried-out upon Tenant Application
Finding the right tenants for your property is just as crucial as finding the right property itself. You’re better off with a slightly longer vacancy than quickly approving a tenant who will abuse the property and cause headaches and financial loss.
7. Maintain a Professional Relationship with your Tenant
You don’t have to become best buddies with your tenants, but a professional relationship is always a good idea.
Good, two-way communication is the best way to build trust and establish a rapport with your tenants. These are the people who are paying you rent and taking care of your property – it’s in your best interests to make the effort with them.
8. Understand your Maintenance Responsibilities and Expenses
Your landowner duties incorporate completing maintenance and repairs in a timely manner. Be that as it may, what you may find surprising is just how quickly these expenses can add up. You need to have the funds available in order to fix issues as they emerge, else you may wind up breaching your agreement.
9. Hire a Property Manager
If you feel overwhelmed by any or all of the above, have confidence that a good property manager will be there to guide you through the process all the way. Property managers are knowledgeable and experienced. They can deal with the issues you either don’t possess energy for or don’t have the necessary skills.
As a property investor, your landlord obligations include doing right by your tenant, also in addition ensure that you are as educated and prepared as possible in order to assemble a successful property portfolio.
For those who are looking to engage an experienced property manager so they can save time, money and headaches, contact us today!
Paul Hill Realty has built up a reputation of giving exceptional service as well as going above and beyond the normal expectations that a property investor can expect.
Paul Hill Realty are Specialists in Residential Property Management on the Northern Gold Coast from Southport to Ormeau and west to Wongawallan. However, knowing the complete South Eastern Qld area as well as we do. Allows us at Paul Hill Realty to list and manage any residential investment property in South East Qld.