Managing your investment property

Managing tenants

As you can imagine, having the right tenant is one of the most important parts of managing your investment property. The ideal tenant will pay market rates for your property, will pay on time, in full and generally treat your asset like their own home.

Attracting these types of tenants requires more than just sticking up an ad on a real estate site. It requires positioning your home in the right light, showing off what you have in an attractive way so they’re encouraged to apply. Good descriptions, enticing images and a professional approach.

Property managers will be required to market the premises and will be responsible for getting a good price, and the property may be more appealing simply because renters know they will be dealing with a professional rather than directly with an owner.

Once you start getting vetted applications, there are other things to consider to ensure you’re getting the real picture of the applicant. Some useful tools include criminal background checks, credit checks and naturally, bankruptcy and eviction reports. It’s information which could save you a lot of heartache down the road.

Managing paperwork

Property managers who elect to do it themselves will need to manage all lease agreements, rental payment authorities, lodgement forms and management of the bond as well as the whole property inspection process, including generating and managing reports. These reports are designed to protect both parties and can be crucial should something go wrong, so the correct implementation of these documents could be the difference between a win or loss at the relevant tenancy tribunal.

There is also paperwork required for entering and inspecting your property during a tenancy, even for external maintenance or other genuine purposes.

When concluding a tenancy, by either party, there is another set of documentation which needs to be adhered to and must be used and completed correctly to make sure a valid notice is given.

Managing obligations

During a tenancy, there are obligations on both sides of the equation. Collecting the rent is great, but there is a lot of legislation in place to protect tenants and landlords, so become familiar with the interpretation and implementation of these laws.

Every landlord must ensure the property is fit to live in and meets health and safety laws. That’s by the government’s standards, not yours. It is on the landlord to provide correct notice periods and documentation, and to understand when and how rent can be increased. Every property must provide and maintain locks or other security devices to ensure the property is reasonably secure.

This does not mean that the property must be in perfect condition, but it does mean you have to know what the standards are and be able to ensure they’re met.

If there is any dispute throughout the process, initiated by either side, then you’ll need to be prepared to deal with the issue directly – or pay a good property lawyer.

As with anything, if you have the time and expertise then managing your own property can be a rewarding way to grow your wealth the way you want to. However, there are many issues which can arise which can become a major headache if not handled appropriately or swiftly.

At Property Navigators, we take the stress out of managing your asset so that you can focus on building the life you’ve always wanted and spend your time enjoying it. Speak to one of our experienced property managers today to take the hassle out of growing your wealth through property.