Having an investment property can be stressful. From tenants who cause damage or pay rent late to dealing with paperwork and routine maintenance, managing a rental can come with challenges. However, it’s definitely a lucrative affair.
The key is to eliminate some of the stress so you can better enjoy the financial benefits of being a property investor. The best way of doing so is through careful preparation and outsourcing certain tasks to experts.
Attract the Right Tenants
Attracting and keeping quality tenants is one of the most important parts of owning a rental and can make all the difference in the world. The right tenant will maintain the property as though it were their own home, lowering potential repair and maintenance cost and stay for a long period of time, allowing you to reduce vacancy rates.
You can attract the right tenant by using professional photography when advertising and ensuring the property is well-maintained before the tenant moves in. The quality and state of the property often reflects the kind of potential tenants it attracts. Poor upkeep is an invitation for further neglect by future occupiers.
Screen Tenants Carefully
Screening tenants can be a time-consuming and challenging task however, particularly if you don’t have the right resources. It’s also a risky business as you might find yourself facing accusations of discrimination if you reject people for the wrong reasons. The best approach is to have a standardised and strict screening procedure where you request a certain amount of information and number of references.
An even better approach is to use a real estate agent who has access to tenancy databases. These databases are used to screen prospective tenants to ensure they’re reliable and have treated past properties they’ve rented respectfully. Tenants who have breached rental agreements or caused malicious damage to rentals in the past are often blacklisted.
Ensure you have the correct insurance cover for your investment property. Don’t make the mistake of thinking that standard insurance will cover your rental while you have a tenant. Without the right cover, you’ll be out of pocket for loss of rent, damage caused by the tenant and more.
Manage Cash Flow Properly
Maximise the return on your investment property by getting expert help on accounting, finances and paperwork related to your rental. Having a proper depreciation schedule and claiming all the deductions you are entitled to can account for hundreds of dollars every tax year.
Staying on top of your finances and ensuring the property is well organised also helps you keep on top of maintenance costs. Ensure you have an emergency repair fund in case anything goes wrong and your insurance doesn’t cover it.
Hire a Property Manager
The best way to avoid the stress of dealing with evictions, complaints and maintenance issues is to hire an experienced property manager. They can help make the whole process of managing a rental easier, from finding quality tenants using their real estate marketing expertise to using their knowledge of real estate law to help maximise your returns and protect your rights.
If you need a reliable property manager to look after your investment in Geelong, get in touch with the experienced team at Barnett Real Estate. For the latest property news, subscribe to our newsletter.