When it comes to managing your investment property to ensure you get the best possible returns, nothing beats getting the best tips from people that have done it before you.
So here are six tips on how to best manage your investment property
Keep your property pristine
One way to make sure you get the best tenant to look after your investment property. At the same time ensuring you are getting the best returns and your investment property keeps its
long term value, is to conduct regular and timely maintenance.
Tenants are increasingly particular about the condition of properties and will be reluctant to pay top dollar for a property that’s seen better days and is not properly maintained.
By keeping up appearances with a fresh coat of paint as required, attending to any necessary repairs or even installing an air conditioner or dishwasher to take that bit of extra care for your tenants, you will reap the rewards with a top rental price.
Additionally, you are more likely to attract a tenant who pays their rent on time and treats the property with the same respect as they would their own home.
And let’s face it, a well-maintained property will be a money spinner for the long term as it continues to grow in value, rather than losing value due to untended wear and tear.
Investment Properties are a business, so Be business minded
When it comes to managing your investment properties, you should think like the owner of a business, because that’s essentially what you are!
Use the best tools to help you manage your investment property (like RealRenta.com), take an active interest in all aspects of property management. Also
high quality parts and repairers to keep the value of your investment property high, because at the end of the day, it’s your asset and you need to make sure it’s being looked after effectively.
business you need to
insure the investment property and have landlord insurance for when things do go wrong.
Don’t get emotionally involved
While we understandably wear our hearts on our sleeve when it comes to one of the biggest investments you will ever have. You need to understand it is a business and you need to have the tools and processes in place to run your business the right way.
There is no point getting emotional when things go wrong, like tenants not paying their rent, not looking after the property or even damaging the property, as this is why we have insurance tools, and processes in place. To look after things when they go wrong.
Don’t make it personal
Making friends makes us all feel good right?
When managing your own investment property, it is good to have a good relationship with your tenants, but getting
cosy with your tenants can actually cause a world of pain for landlords. Firstly, there’s more chance of complications when it comes to the tenant paying their rent in a timely manner, as they might feel they can take advantage of your personal relationship. Which is why having a property management tool is a must.
Secondly, if you stretch the friendship and pop around to visit too frequently, the tenants might end up accusing you of breaching their legal right to quiet enjoyment of the rental property. Again, this is where the benefits of a property management tool like RealRenta.com, is invaluable.
Stay on top of rent reviews
maximise the return on your investment it is essential to keep on top of where the rental market is heading. Conducting annual rent reviews will ensure you always achieve the best possible price and therefore returns on your asset. Often, by increasing your rent in line with the market, you can decrease the divide between rising monthly mortgage repayments and the contribution your tenant makes each month.
But you can’t get too greedy as it can have the opposite effect and alienate a good tenant, who might decide to move out. For this reason, you need to weigh up whether gaining a bit more in the short term could see you lose out in the long term because your property is overpriced and remains vacant for longer.
Having your property vacant even for a week can eliminate any profits you may have got from rent increases. It is always better to have a good long-term tenant than risk having your property vacant and you may not find the next tenants are as good.
Have good help
A good business
recognises that they can’t do it all themselves. They need to have the right processes and tools in place to help them effectively manage their interests and help generate the best possible profits.
The same should apply for property investors.
Employing the right processes and using the right tools to help will be a great benefit in the long term. A tool like RealRenta.com will collect the rent, do invoices and receipts, send rent reminders and breach notices automatically, handle maintenance issues and has a communications platform to log all communications with the tenants. Best of all, it is all done within the parameters of the laws pertaining to rentals and in a professional manner.
By using a good property management tool like RealRenta.com and paying a small, tax-deductible fee for the services, you will ultimately free up your own invaluable time to do what matters most – finding more lucrative rental properties to add to your portfolio.
Thursday, 3 January 2019