Managing an investment property well ensures that you’ll get the best possible return on your investment. In fact, according to property management firms having a sound knowledge of the Residential Tenancies Act and treating your investment property as a business will allow you reap rewards later on down the track.
The top 8 property management tips are as follows:
1. Make sure the lease reflects the market.
Keep your eye on the rental market, as it changes frequently along with rental property supply and demand. This means that you need to review your rents annually, and that you need to consider if an increase in rent is worth the possibility of losing a long-term tenant.
2. Ensure the property is secure.
As a property owner you are obligated to supply a secure and lockable premises to your tenant. Make sure you have suitable window locks, deadlocks and other security measures in place, and that these work efficiently.
3. Check lease agreements.
Always be aware of your obligations as a landlord and what your tenant responsibilities are. This will allow you to avoid any costs that are your tenant’s responsibility.
4. Be a paperwork guru.
Tenants can default on rent payments and dispute when payments have been made, they can also dispute bond claims or make complaints about you as a landlord. This is why it is important to keep receipts and copies of any correspondence you have with your tenant.
5. Know your rights and your tenants.
The Residential Tenancies Act is a long and detailed document that lists you and your tenant’s rights. Take your time to read this document and to know what you, as a landlord, and your tenant can and cannot do. Good landlords typically retain their tenants for longer.
6. Be business minded.
Treat your investment property like a business. Take an active interest in how your property is maintained, and fix any problems as soon as they arise.
7. Leave your emotions at the door.
Don’t allow your investment property or tenant to tug at your heartstrings. Sure, we all have needs and not everything goes as smoothly as planned, but you need to remain impartial and professional at all times. This means that you need to think about your costs and overheads, especially when replacing equipment that no longer works or if your tenant asks to pay rent at a later date.
8. Keep your property in excellent condition.
If you want to attract good quality tenants that are reliable, then you need to present your investment property well. This means painting the property when it needs it, both inside and out. Keeping on top of any repairs and possibly fitting your investment property with a few luxuries, such as air conditioning and a dishwasher.
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