Landlord's Guide- Managing and Maintaining Rental Properties

Whether you are building or buying an investment property, if you intend to rent it out then you will become a landlord. There are a number of rules and regulations attached to being a landlord.

You will of course want to retain the value of your property and also maximise income. However, it must also be remembered that if you are a landlord, you are in essence in the business of housing people. Below are some important considerations for being a landlord in the current market.

Proactive Property Management

Most states have detailed and complex rules regarding residential tenancies. If you are time poor then it might be worth engaging the services of a property manager who can deal with this compliance on your behalf. Most property managers will charge a letting fee (normally equivalent to one week’s rent plus tax) for finding a suitable tenant and then take a percentage of the rent (ranges from 5 to 11%) for receipting rent, dealing with repairs and maintenance and disbursing rent to you once a month.

Regular Inspections

Most property managers will carry out the inspections for you and many are now in the habit of sending through photos with a detailed inspection report. These reports are helpful and will often identify suggested maintenance.

However, if you are close to the location of your investment property then we would suggest attending one of the inspections at least every one to two years. Nothing replaces seeing your property with your own eyes and it is important for landlords to not take a ‘set and forget’ approach to their own investments.

Document Everything

Whether you are using the services of a property manager or self managing, it is highly recommended that you document as many interactions as possible. There are a number of disputes between landlord and tenant that have ended up in Tribunal that have come down to a ‘he said - she said’ situation.

Try to keep interactions with the tenant via email so that there is a record. Take photos at the beginning and end of each tenancy. Keep your receipts for spending and repairs. Not only does this make tax time easier, but if you are ever required to make an insurance claim you will appreciate your adequate record keeping.

Get Insurance

Even though it is the tenant’s responsibility to insure their own property, there is no excuse for a landlord not having landlord’s insurance and having the building insured. This is a cost of being a landlord and really is not negotiable.

Tend to Repairs and Maintenance Quickly

If there are maintenance requests at your property then it is best to have these tended to quickly by qualified repairers. Not only do you want to maintain the value of your property, but a well maintained property attracts quality tenants. Small repairs can also balloon into bigger repairs if ignored. It is also important to note that failing to fix items at your property may also become a liability issue in the event of injury or loss.

In conclusion, effective property management is a balance of proactive planning, open communication, timely maintenance, and regular inspections. The key to a prosperous residential property venture is to remember that successful property management is about more than bricks and mortar - it is about building relationships too.