Property has always been a fabulous investment, and many Australians are now choosing to get an additional place, alongside the home that they may be living in. They may look at this as a way of getting not only some long-term return but also interim revenue as they build their portfolio. The properties that you buy here have to be carefully managed, however, if you're going to get as much in return as you can. As a new landlord, what are some of the key things that you have to bear in mind in order to ensure your success?
Understanding the Big Picture
Across every state and territory, specific rules are put in place by the government in order to protect tenants, and landlords need to abide by these at all costs. You have to be familiar with all these responsibilities before you do anything else. In particular, make sure that your property is well maintained and absolutely safe before you consider putting it onto the rental market. Within the property, all of the appliances need to be in a first class state of repair and fully functioning. Whether you own the actual building structure outright or not, you will have some responsibility to maintain its condition nevertheless.
Communication is everything when you are a landlord in terms of tenant interaction. All of the lease agreements have to be carefully drawn up and each tenant has to understand the various regulations before they sign and take the keys. On an ongoing basis, it must be very easy for them to get in touch with you should there be any issues or some type of emergency.
The Bond Management
Any bond given to you by a tenant has to be carefully protected according to authority regulations in each state or territory. The bond has to go into a bank account and cannot be used in any circumstances for cash flow, repairs and so on.
Being Careful Who You Take On
It's unfortunate, but you cannot trust people at face value to look after your property as well as you would. Therefore, ensure that you conduct proper background checks before agreeing to take somebody on as a tenant. This is one of the biggest challenges you can face and you need to collect references each time.
You need to have your finger on the pulse when it comes to the rental market itself. While you will want to maximise earnings, you must be in line with expectations if you want to ensure maximum occupancy. You also need to ensure that you have a good reputation in this social media-driven world, so keep up with any issues and look after your tenants.
Who Can Help?
As there is a great deal to consider on an ongoing basis, many new landlords choose to take on experts to help them through it all. This is why you should get in touch with a property management company. They will almost certainly have experience in areas that you don't and can help you with tenant selection, tax issues and other considerations, as well.