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31 October 2018

Being an active landlord

Being an active landlord 

As the rental market moves up and down depending on property market forces at the time, it’s important as a landlord that you play an active part in your property management to make sure you attract the right tenant and keep the property tenanted through the ups and downs.

Maintaining your property

  • Agents will do routine inspections as part of your service agreement over the period of a lease. Take note of what is reported back by your agent about the condition of your property and if any repairs or upkeep are required.
  • When items need to be repaired don’t just go for the cheapest fix, ask for the best long-term solution, even if it’s a little more expensive. Repairs done properly mean less costs over the long term  
  • Remember repairs are tax deductible against your rental income

Pricing your property in the current market

  • Keeping your property rented at a good yield will always depend on current market conditions. Property websites like Domain.com.au and Realestate.com.au only give you part of the information and not the whole picture that you need to make an informed decision
  • Your agent can provide you with more accurate facts and relay details about what is happening day to day in the rental market
  • Use your agent to understand the market, comparative rentals, available stock and current rental returns. Be as well informed of the current market conditions as you can before you set your asking price
  • Remember the cost of an empty rental and time without a tenant can very quickly outweigh the potential return of an extra $20.00 per week income

Considering long / short-term leases

  • Locking in a tenant for a longer lease period can sometimes pay dividends
    o Guaranteed income at a set rate for a set period
    o Tenants appreciate the gesture and like the security
    o It may assist you to avoid the changing market conditions such as falling rents and oversupply
  • Short term lease periods tend to leave you more exposed to the changes in the market
  • If the rental market is buoyant, where demand to rent exceeds the supply of apartments, then you may consider short term leases or rentals and increase the rental asking price more frequently

Pacing rent price increases to keep up with the market

  • Rental increases should be fully considered along with the current market conditions at the time
  • You will do yourself no favours from a tenant’s perspective if you are increasing rent levels whilst the overall market is decreasing
  • Consider smaller increases more often rather than large jumps to catch up with the market. Current tenants will be more receptive to this, as its easier for them to cope with smaller increases

Ultimately you should be managing your investment property with the assistance of your agent. Be proactive and ask your agent questions, note their feed back and make well-informed decisions that will ensure you attract the best tenants and receive the best returns on your property investment.

Perter Wong
Principal
P&G Mode Realty

You can contact Peter on 02 9381 9999

Peter is available at pw@pgmode.com.au or by phone on 02 9381 9999. You can also check out P&G Mode Realty here

 

Liability limited by a scheme approved under Professional Standards Legislation. Liability is limited in those States where a current scheme applies.   

 

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