Purchasing an investment property is exciting but also a large financial commitment. Whether you own one or several, you need tenants who are reliable, care for your property and pay their rent on time.
Some landlords choose to manage their own rental properties while others use a professional property manager. Whatever you choose to do, there are 3 essential elements to ensure your property investment generates good rental returns.
1. Securing the best tenants
Problematic tenants are costly and time consuming. It takes careful, strategic marketing and thorough screening of all potential tenants to ensure you quickly eliminate any troublesome ones.
The best tenants will respect your investment and treat it as if it was their own home. They will take good care of the property, promptly report any maintenance issues and pay their rent on time. Ideally, they will want to continue on in the property for years to come.
2. Minimising vacancies
Once you secure a great tenant, you’ll want to keep them for as long as possible. Therefore, tenant retention should be your top priority. Longevity in a tenancy equates to better returns on your property investment.
Relationship building, good communication and knowledge of the rental laws are the keys to building a long-term tenancy. It’s also important for any maintenance requirements to be dealt with in a timely manner.
3. Caring for your Investment
Regular property inspections are essential to ensure your investment is being looked after and any necessary repairs and maintenance addressed.
When carrying out routine inspections there are a number of things you should be looking for:
- Is the tenant sub-letting the property?
- How many people and/or pets are living at the property? Does this comply with the rental agreement?
- Has furniture been placed to hide any damage?
- Has the property been cleaned adequately to ensure there are no issues at the end of the tenancy?
- Are smoke detectors in place and operational?
In most cases, tenants simply need education on their responsibilities for caring for the property.
Maximising the rental return on your investment property doesn’t happen by accident
Every landlord hopes their investment property appreciates so they see increases in their rental return. But successful, stress-free property management is never a “set and forget” investment. It takes active management and open communication between the property manager, landlord and tenant.
If you are looking for an experienced, knowledgeable and dedicated property manager, contact Brigitte at Stills Properties. She’s been managing investment properties for landlords for over 30 years.