Owning a successful investment property is often a long-term dream of property owners. Turning your home into a profitable revenue stream is clearly appealing but what about the day-to-day reality? Finding and keeping good tenants is critical to the long-term success of your investment, so here are our top 5 tips to get you started!
1. Utilise a good property manager
A property manager is exactly that; they manage the day-to-day running of your property investment. By using a Ray White property manager you can rest easy knowing your property is in safe hands and is delivering maximum return on your investment. A property manager will screen potential tenants, look after day-to-day maintenance issues, negotiate tenancy renewals, provide legal guidance on any issues that may arise and essentially be your main port of call for any issues or questions you may have.
2. Keep the lines of communication open
Like any good investment, simply signing the management rights over to your property manager and then forgetting about it isn’t enough to maximise your return. It’s important to communicate with your property manager and let them know exactly what you are looking to get from your investment. By keeping the lines of communication open and being responsive, you can ensure both parties are working together as a team to maximise your property’s potential.
3. Be prepared for unforeseen costs
Part of being a responsible investor is being properly prepared financially. Quality tenants will expect to get good value for money and this means a property that is in good condition. This may mean you are required to allocate sufficient budget for maintenance and upkeep of the property. Depending on your property, this could include body corporate fees; garden maintenance or simply repairing and replacing damaged fixtures within the home itself. This not only helps keep your tenants happy but will also go a long way to ensuring your property remains in good, liveable condition. Property rental is a two-way street, and while it is standard to expect your tenants take pride in the property and perform general maintenance, it is also important that you fulfil your obligations as a landlord.
4. Invest in suitable property
Investing in the right property from the outset can have a major impact on your ability to find and keep good tenants. Consider the location, if you are in a family orientated community, with easy access to school and facilities your likely target market will be young families. With this in mind, it’s important to have a property that suits this style of tenant. For the majority of families having some yard space is important, a clean and comfortable home is also very important but not necessarily new and pristine. On the contrary, an inner- city unit will attract a very different demographic, and this should always be taken into account. By understanding your rental market and target demographic, you can go a long way to ensuring your property is a place your tenants will feel at home in and want to stay.
5. Rent to pet-owners
The idea of allowing pets into your investment property might be a little scary. But studies have shown pet-friendly rental properties are in much higher demand right across Australia. Furthermore, you’ll be amazed at how appreciative pet owners will be with flexible homeowners, willing to give them and their furry friends a chance. This can lead to extended rental agreements and continued tenancy renewal, which means long-term security for your rental revenue. To alleviate your concerns further, rental property inspections are in place to pick up any maintenance issues early on and are designed to ensure your property is kept in top condition.
When renting your property it’s important to remember the tenant/landlord relationship is one of give and take. It’s important to be flexible and prepared as a property owner to ensure you are best placed to hold on to good tenants when they come along. Talk to Ray White today about finding the perfect tenants for your property and achieving the maximum return from yours.