The journey to becoming a real estate investor can be complicated and time-consuming. You might think finding an investment property is the hard bit, but once you make your purchase, the real work begins.
Effectively operating a rental property involves everything from finding tenants, keeping on top of maintenance, chasing missed payments and whilst always staying on the right side of the law.
If your unprepared or inexperienced, doing your taxes and adhering to regulations can be a minefield and you may end up in trouble unintentionally.
As your portfolio grows or if real estate is a side project for a secondary income, you may struggle to find the time to deal with things alongside your day job.
As a landlord, you have a responsibility to provide a safe property for your tenants. But you also have a responsibility that may extend to the neighbours and the even general public.
If an adjoining wall or tree in the front yard should fall down; you could be liable to damage or injury caused outside of your property’s boundaries.
General responsibilities for landlords include:
- Maintaining structural integrity
- Upkeep of boundaries
- Ensuring electrical and gas safety
- Safe installation of appliances
- Appliance maintenance
- Removing health threats and hazards; for example, damp and mould
- Adhering to any other terms in the contract
Without a great deal of time and a good network of trusted tradespeople, just getting your property fit for tenants could prove an impossible task.
Different states also have additional rules to follow. For example, in the Australian Capital Territory and Northern Territory, you must provide tenants with a Conditions of Premises Report within one day of moving in.
Queensland specifies a property must be fit to live in and in good repair. Landlords also have security responsibilities, ensuring a key to each lock is provided to tenants and that locks are of a reasonable standard.
A property manager will have experience of any specific requirements in your state. They will be up to date with regulations and be confident in carrying out all the required responsibilities.
Could you be sure you had covered everything if you did it alone?
Finding tenants is a crucial part of managing a rental property. Without tenants, you aren’t making any money.
Finding the right tenants is even more important; and you guessed it, there are regulations for tenancies too.
A property manager can deal with marketing your rental property and meeting with potential tenants to show them around. This is one of the biggest consumers of time in rental property.
Are you a professional photographer? Can you stage your property to be as appealing as possible? We have a team of professionals that can, meaning your property won’t be vacant for long.
It’s also important to get good tenants and tenants that are in it for the long run. Bad tenants can be difficult to spot, but a property manager will know the warning signs.
The last thing you want is for bad tenants to damage your property or not pay their rent. It can cost landlords thousands of dollars and bad tenants can often be difficult to get rid of.
Once you’ve found tenants, a tenancy agreement needs to be written up and signed by both parties. This will include details on the term of the tenancy, the amount paid in rent and when it should be paid.
The tenancy agreement stipulates conditions for both the landlord and the tenant and is a legal document. It’s important that it is done correctly and doesn’t miss anything out.
Alongside a tenancy agreement, different states will require other paperwork to be provided, such as New Tenant Checklists or a consumer protection handbook. Again, a property manager will know all of this, saving you time and worry.
Share Houses also have their own unique requirements. If you have a large property and plan on allowing multiple people from different families all on separate leases to live there, it’s called a share house.
Different states will have different requirements for share houses. Managing a share house rental property will take even more of your time than a standard rental because there are more tenants to take care of.
You may be required to have a license, so be sure to check this before purchasing a property as you won’t always be guaranteed to be granted one. There may be other restrictions on the number of tenants, depending on the size of the property. Or how many kitchen or bathroom areas you might need.
You may want to consider a property manager that specialises in share house if you’re thinking of buying one.
ASSET MANAGEMENT – MORE THAN JUST PROPERTY MANAGEMENT
Appointing a well-experienced and capable Property Manage is a smart move for any property investor to make, but the really savvy investors will look for a property manager that has the skills and ability to deliver the services of an asset manager.
Whilst a property manager will deal with the regular and more routine day to day management of the property and its tenants, an asset manager will deal with the bigger picture and long-term planning. They can help your investment grow by ensuring you have optimal financing, understanding how property taxes may best be considered, conducting market research, data analysis and income forecasting. They can advise on the best properties to buy or when to sell based on your current situation and portfolio. They can boost the market value of your real estate with their in-depth knowledge and understanding. They will also help a property manager figure out the best way to market a property and who to market to, in order to find and retain tenants.
We are experts in property management. We eat, sleep, and breath rental property and we are ready and waiting to help you with your investment property.
Contact us today to find out how our friendly approach is perfect for you.