Investing in property is a business, so it is important to manage it properly in order to achieve financial success.
The first decisions you’ll need to make is whether to manage it yourself or hire a property manager. Whether you decide to go DIY or hire a property manager, it helps to know the ins and outs, so, here are five tips to help you understand what’s involved.
- Be familiar with the law
There are laws in place to protect both tenants and landlords. It’s important that you are familiar with these laws and understand your and your tenant’s rights and responsibilities. Knowing the law is also helpful if you decide to hire a property manager.
- Prepare the necessary documentation
Before looking for tenants, organise all the required documentation, which will include:
- The lease: usually a fixed-term for 6 or 12 months.
- The bond: an upfront payment by the tenant, which is often one month’s rent and 2 weeks rent in advance. This is usually paid in advance and held by the governing authority in your state or territory.
- The condition report: a document that notes the condition of the property before the tenant moves in. Taking photos is usually a good idea.
- Attract and secure quality tenants
What do you look for in a tenant? Create a list of qualities you need your prospective tenant to have. You should also research the appropriate rent you will charge for your property. Ask about pets and of course references.
- Fill out the documentation, lodge the bond, and collect the rent
Once you find a tenant, file all the necessary paperwork. Keep good records of rent in and interest out along with any expenses you incur. You will need all this for taxation purposes.
- Retain and maintain
When you have secured a tenant make sure to respond to requests for repairs and maintenance quickly and efficiently. It’s also recommended to organise inspections to keep tabs on the condition of your property.