So many property investors underestimate how complex and difficult being a landlord can be. You're responsible for the roof over the heads of your tenants, which is not something that you should ever take lightly.
The most effective way to ensure that your tenants are happy and your property is well looked after is to hire a property manager. Doing so will not only preserve and increase the value of your investment, it will make your life easier.
1. Tenanting your property
Melbourne property is in hot demand and vacancies are extremely low at only 1.7 per cent, SQM data shows. However, by selecting untrustworthy tenants or skimping on marketing, you increase the chance that your property will experience vacancies exponentially. Every week that your property is empty is money out of your pocket.
A property manager will take care of the entire process for you, from advertising to showing your home and finally selecting an ideal tenant. With the right help you can be sure that your tenants have been thoroughly screened to ensure they're reliable and trustworthy.
2. Preparing lease documentation
Before you tenant your property signing an air tight lease agreement is a must.
Before you tenant your property signing an air tight lease agreement is a must. Anyone can download a basic contract off the Real Estate Institute of Victoria website, however, a good property manager will tailor this agreement to protect you. They will also prepare all documentation necessary so that you can be absolutely sure that all your bases are covered and that the agreement is legally sound.
This agreement could include details of how rent will be collected, what happens if the tenant is in arrears, bond payment details and ground rules around how the tenant may use the property.
3. Rent collection and handling arrears
Rental income is key to any successful property investment. However, things happen, people make mistakes and sometimes your monthly payments won't show up on time. In fact, they may not show up at all.
A professional will take decisive action if rent is late, reminding tenants that they are in arrears, proactively working with them to solve the problem, then issuing a notice to vacate if the situation isn't quickly remedied. This process will be managed in line with the Residential Tenancies Act in mind, as well as the best interests of you and your tenant.
4. Regular inspections and maintenance
Property is not a set and forget investment. Inspections should be carried out every six months in line with state law and maintenance will need to be carried out regularly to keep the property in good shape.
Doing this yourself can be extremely time consuming and without experience and industry knowledge it's easy to miss the little details. With the help of a professional property manager you won't need to take hours out of your day to keep in touch with tenants, inspect the property or organise tradesmen for maintenance.
They'll have it all under control. You'll be kept up to date on the results of inspections and you may even save money on maintenance thanks to your property manager's industry contacts.
Property investment can be time consuming, complex and even difficult, but it doesn't have to be. Hiring a property manager will take the worry and uncertainty out of your investment, looking after the wellbeing of your tenants and of course your property. That way you can focus on reaping the benefits of your hard work – not sweating over late rent or maintenance.