Rental Tips for Landlords
1) Treat it like a business & remove your emotions:
The minute you make the decision to rent the property & charge rent, it is a business and tax deductible too, but remember, it’s best not to be too emotionally involved. Your investment also can have risks associated with it & money that needs to be invested in to its upkeep from time to time.
2) Take out Landlord Insurance cover:
We cannot predict the actions of any tenant, therefore Landlord Insurance cover from a specialised rental insurer ie. Terry Scheer or Aon, is strongly recommended to protect your investment property from a possible defaulting tenant or accidental damage.
3) Have a budget and allow for repairs:
Things will eventually break down, wear out or need repairing, therefore, please ensure that you set aside a budget to be able to have necessary repairs/replacements done when required. Remember, every 8 – 10 years flooring replacement, window coverings, hot water systems and repainting may be necessary.
4) Be realistic with ‘fair wear & tear’:
Good tenants all live uniquely and will treat the property differently, without necessarily damaging the property. After a lease is signed & rent charged, we legally fall in under the Residential Tenancies Act where reasonable ‘fair wear & tear’ must be taken into consideration. That is, if items wear down, get scuffed or marked over time or simply breakdown from using the item, these are an owners expense to rectify/replace and of course, depreciation is an allowable tax deductible expense for you, as an owner.
5) Let our office pay Rental Bills on your behalf:
Have our office pay your Council & Water Rates & Strata Levies if applicable, on your behalf, then you have a Statement record for your tax purposes and assists the accountant at the End of the Financial Year.
6) We are responsible for your rent, not your mortgage:
Please ensure you have enough money to cover at least one mortgage payment, as though we do our very best to ensure that your rent is paid on time, even we cannot predict a tenants circumstance sometimes changing, which could cause late rent.
7) 4 RENT signs:
Remember, when looking for a prospective tenant, the humble, low tech 4 RENT sign still produces 10%+ of enquiries, so ensure you utilise this method by approving our office to erect one at your property.
8) Pets:
These days, 30 – 50% of all tenants have a pet, therefore, when looking for a prospective tenant, don’t discount consideration being given to applicants who have one - allowing qualified, good tenants with pets, can reduce your vacancy times and opens the way for a higher percentage of possible applications. If you do decide to approve a pet, we shall include a pet agreement written in to the lease.
9) We are not always instantly available:
We are property managers & spend a large proportion of our time outside of the office – if you leave a phone message or email us, we shall contact you usually within 4 hours, but always within 24 hours, depending upon the level of urgency.
10) Tradespeople:
We have selected & only use tradespeople who have been vetted by our office – qualifications, reasonable rates & insurances held and their ability to undertake the work given in a reasonable time frame & quality level of workmanship.
11) Change Property Management Company to Port Stephens Rentals!
Switching your property manager to Port Stephens Rentals is easy & you can do this at any stage of a tenants lease – simply contact our office and we shall handle the whole process for you…. Simple!