When interest rates, strata levies and land tax rise, the landlord is left to carry the extra burden. It is only fair and sensible to ensure that the income the property generates is at the market rate and not significantly below.
When it comes to repairs, a little expenditure today can save a lot tomorrow. Good quality properties attract good quality tenants and vice versa.
Trying to increase the rent by a small amount can add up to a lot if the property sits vacant. Better to have a payer at a fair price than nothing at a dream price.
Paying an agent to re-lease a property can cost anywhere between 1 and 2 weeks rent. Too many landlords overlook this point when renegotiating rents with existing tenants.
Investment properties usually hold a great deal of the landlord's net worth. It can be complacent to accept a condition report from the agent every 12 months as to the true condition of the property. It is always best to check it out for yourself, with your own eyes if possible.
A stable tenant that looks after the property as if it was their own and pays on time is far more valuable than a sloppy non-payer.
Many landlords are shocked and disappointed to learn that the agent has not inspected the property or maintained its condition for years. What was a desirable renovated residence is now a bashed up shack. Why? In most cases, the property manager is managing too many properties.
An investment property should be treated as such. Some landlords treat it as though someone else is living in their home and become too emotional about the property. Consider your investment property as a ‘Bricks & Mortar' savings account.
A happy tenant is more likely to be a good payer. If the landlord does not look after the property, why should the tenant? Both the landlord and the tenant have a mutual interest in maintaining the standard of the property.
People don't become non-payers overnight, they usually have a history. In the rush to get someone into the property, the prospective tenant's references and history can be overlooked. It is better to have a vacant property than a non-payer that abuses the property.