Are you looking to maximise the return on your investment property?
You must take care of and maintain your property to the best of your ability, especially when asking tenants to live in and take care of it as their own.
Here are some of our favourite tips for Property Owners to make the most of their investments.
1. Remove the emotion
Oftentimes the property that is being offered for rent was once the PPR (Principal Place of Residence) for the homeowner. While this is often a very savvy investment strategy, it can lead to an emotional attachment to the property that makes damage/repairs challenging. Even if repair requests seem trivial, having a happy tenant that pays on time is every landlord’s dream. Remember that ultimately you want the house to function well as an investment.
2. Hire good trades
Although it may seem simple enough to save money by hiring a cheaper tradesperson, unless you know them by reputation, hire someone you can trust. A good trade will not only keep your property in good working order but can also be an extra set of eyes on your property. If you have trouble finding good tradespeople or need to get a new tradesperson, ask your property manager. In most cases, they will have a good contact who can help in maintaining your property.
3. Manage your property like a business
No business owner in their right mind would neglect their property, ignore problems, or hire people knowing they’re a terrible fit. Think of yourself and owning and running a business when it comes to your investment portfolio. Do you want the best return? You need the best people; this can also affect the long term performance of your investment.
Don’t be afraid to ask for photos of the work that has been done or completed previously; you must know what condition the property is in so that you can fix problems before they happen.
4. Hire a property manager
Last but not least, hire a property manager. A great property manager will be your eyes and ears into the assets you have spent your hard-earned cash on. Your property manager will be able to provide photos, written reports and updates on the condition of your property regularly, and they can also make suggestions on how you can save money but optimising specific parts of your property.
5. Monitor the local market
Most of the time, property investment takes place in suburbs separate from where the owners live. Actively monitoring the real estate market in the area of your assets is an excellent way to see what quality and prices are currently advertised. There may be an opportunity for you to raise the rent on your property based on what other properties are being leased for, etc.
If your property is of higher quality than other listings in the same area, then that is generally a sign that you will end up with a better quality tenant than other listings in the area.
Your property manager is also an excellent sounding board for these sorts of enquiries as they work in and around the area consistently and are privy to information that most property owners are not.
If you have any further questions reach out to our team at https://www.blackpropertycc.com.au/contact/