Top tips for rental owners
Whether it’s part of your overall financial plan, or a place you eventually hope to call home, owning a rental is all about protecting the value of the asset, with a view to also offering ongoing income.
It’s a bit like a business, where there are incomings and outgoings involved, along with occasional capital expenditure to ensure that property is profitable in the future.
In the interim, it’s also about considering the rights of the people who reside in your rental property, in the knowledge they pay for the privilege of living in the home and there are laws which protect their interests.
With that in mind, here are our top tips for rental owners.
Engage a good property manager
A good property manager is the buffer between you and the rental occupiers. They know the relevant rental law and their job is to protect all parties involved while also protecting the value of the asset.
A good property manager handles this with ease, effortlessly sourcing the right rental occupiers, handling rental agreements, ensuring the rent is paid on time and managing any required repairs and maintenance.
Know the market
While the property manager assists in ensuring you understand the market, it also pays to stay abreast of what’s happening yourself.
This ensures you remain educated about rental prices, and trends emerging in terms of supply and demand.
Maintain your property
There are costs involved to owning a rental property and one of them is maintenance. When your property is well-maintained, its value is protected and it is likely to appeal to higher calibre renters.
In the interim, maintaining your property and conducting any repairs in a timely manner indicates you value the current renters who reside there.
Have a financial buffer
Each year that you own a rental property there will be incomings and outgoings.
In terms of income, this is in the form of the rent.
When it comes to outgoings these can vary, but often include:
- Mortgage repayments
- Repairs and maintenance
- Capital expenditure, such as a new water heater, or pool pump
- Fees for property management services
- Council rates or body corporate fees
Even though these costs are largely predictable, it pays to set aside a financial buffer in case something unexpected or more expensive than anticipated occurs.
For example, in some years your repair and maintenance costs might be minimal, but in others they might be higher.
Meanwhile, what happens if the property is vacant at the end of a rental agreement for longer than expected?
Consider it a business
By nature, owning a rental property is a lot like running a business, and it’s important to see it in this way, factoring in income and outgoings, with a plan for what that property is designed to achieve.
Viewing your rental property as a business takes the emotion out of it. It also ensures you partner with the right professionals, and make decisions based on strategy rather than reactivity.
How we can help
Our experienced property managers pride themselves on establishing great relationships with both rental occupiers and owners.
We manage every property as if it were our own and you can learn more about our property management services here.
Alternatively, if you are looking to rent a property, you can view the properties we currently have available here.
