Phone: 07 4774 4810
02 Jun 2014

Tips on how to be a successful landlord

As a property manager we are here to help you maximise your rental return…

Whether you have the one investment property or you are looking at investing in more properties, the simple question remains – How do I maximise my rental returns?

As a landlord, it pays to do your research on the area and talk to the experts. To maximise returns is about achieving the highest possible rent and renting the property in the quickest possible time to avoid extended vacancy periods.

Our advice on how to be a successful landlord includes:

  • Ensuring that the property is well-maintained to attract quality tenants
  • Promptly acting on tenant requests to ensure that they remain ‘happy’, caring tenants of the property that want to stay long-term, reducing vacancy periods and the impact on wear and tear that can take place with multiple tenancy changeovers in a short period of time.
  • Taking advantage of tenancy changeovers (when the property is vacant) to upgrade areas inside and outside the property.  It is the tenant’s role to keep the property clean and the landlord’s responsibility to maintain the property, including internal and external painting, replacement of carpets, worn out appliances and window coverings, gardening, shrub and tree maintenance, gutter cleaning and external property clearing just to name a few.
  • If you are considering major renovations talk to us first to discuss 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.
  • Engage qualified tradespeople to undertake repairs and maintenance to ensure that it looks professional and not an obvious DIY fix-up.
  • Don’t underprice or overprice your property as both can lead to vacant periods.

OLD OR NEW PROPERTIES

It can be quite a daunting task to try and evaluate what properties to buy when building up your investment portfolio. Do you buy new properties or old properties?

Do you buy a unit or a house? Do you buy in an established area or a new development?

Of course all of the answers to these questions can only be answered by your personal preferences, but there are important things to remember when investing in property:

  • Always buy a property that other people would want to move into, in an area that they would want to buy or rent. Of course, remember how you present your property determines the type of tenant you will attract. Tenants will be attracted to property that presents value for money, has security, in a good location, is clean, has good sized bedrooms, low maintenance and offers heating or cooling facilities with off road parking.
  • Always do your research beforehand. Use statistical information to find high growth areas and look for high rental yields in your price range. Identify the potential returns on your investment and ensure it covers your loan repayments.
  • Try and buy in a suburb that is experiencing a growth spurt rather than buying at the peak of the growth.
  • Don’t buy a property that requires a lot of upkeep.
  • Your investment should be tax effective and provide you with good depreciation costs.
  • If you have more than one property in the same area, it may be prudent to have one property manager, making the process easier and more streamlined.
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