Thinking of managing your own investment property?
The thought of becoming a landlord is appealing for many reasons – being one’s own boss and the earning potential of building a portfolio of properties are just two of them.
However, the decision to become a landlord should not be taken lightly. There are many different challenges to be considered first, which need to be carefully weighed up against the benefits. Failure to do this can cause some inexperienced landlords to run into problems.
This guide is designed to highlight the most important considerations before investing in a rental property.
Paying the mortgage on a house and covering the costs of upkeep can rapidly become expensive. For repairs use professional property maintenance in Perth from Men Behaving Handy. Every cost and eventuality needs to be budgeted for to make sure that a house will be able to break even or turn a profit once there are tenants living there.
Insurance and Understanding of Liability
Having the right insurance against damage to the property is vital and problems such as fire and theft can potentially cost thousands of dollars. In terms of legal disputes it is imperative that a landlord knows their rights and responsibilities when it comes to disputes with tenants. Understanding of the law helps to resolve legal matters in a timely fashion.
Effective Tenant Screening
It is extremely important to exercise quality control with tenants. Make sure to set up a list of tenant responsibilities that they must agree to before signing a contract. These agreements can act as a code of conduct to prevent illegal behavior or potential damage/misuse of the house. Consider charging tenants for the cost of urgent property maintenance in Perth. It is also advisable to ask potential tenants to provide employment and previous residency references to make sure that a good standard is maintained.
Dealing with Difficult Tenants
Not everyone who lives in a property will be easy to deal with. Some tenants may make complaints whilst others can be rude or aggressive to other people in the house or to the landlord. Understanding landlord and tenant rights in these situations is important.
Being a landlord is not a 9-5 job. Issues with properties and tenants can arise without warning and sometimes require immediate attention. The job requires landlords to effectively be ‘on call’ – for example, If a tenant phones at nine o’clock on a Friday night complaining about a burst water pipe then it is in the landlord’s best interest to contact a handyman in Perth and deal with the problem before it spirals out of control.
For some people, especially those with young families, these time constraints can be stressful and inconvenient. Weigh up this factor before deciding to proceed.
Understand the Value of Location
This is an often overlooked consideration. Location is vitally important for people deciding where to live and they may be willing to pay higher rent in return for convenience such as easy access to the city centre or proximity to local amenities.
With this guide, the path to becoming a landlord should be clearer. Make sure to plan properly in advance of purchasing a rental property, and be prepared for the challenges which will invariably come along.
Want more advice? Contact Mint Real Estate’s Senior Property Manager Georgina on 0418 935 067 or at email@example.com