Yes, you need to keep on top of maintenance!

There's a reason it's called maintenance, it means you have to be constantly checking on things to make sure your rental property stays in tip top condition.

Tenants are legally entitled to a safe and habitable property, but it also makes good business sense - if it's not kept in good repair then your tenants will be few and far between and you will be losing money.

So lets have a look at maintenance.

The Tenant's View

Make sure you keep in mind that other people are going to be living here and you want them to be safe and happy. Happy usually means they will turn into long-term tenants and that's what you want. So look at it from their perspective. What would put someone off? Is the gate hanging on it's hinges? Is the paint peeling? Are there dripping taps? These things don't take too much money to fix, but they have a big impact on what the place looks like and how your tenants feel about the place.

DIY Property Manager Traps

You've decided to forgo the use of a Property Manager in favor of managing your property on your own. Now you need to brush up on your skills so that you don't fall into some of many potential traps out there.

Most DIY property managers assume the hardest part will be dealing with the day-today side of things: Tenants not paying rent. Phone calls in the middle of the night. Not abiding by the rules etc. Yes, they can be frustrating, but I would argue, however, that the toughest part for any DIY Property Manager is the legal side of things. If you are not 100% up to speed on tenancy legislation and the paperwork required, you may find yourself in some unwanted hot water.  

There are lots of areas to look out for, but here are a few common problems that may arise with new DIY Property Managers.

A Successful Rental Open Home vs a Failure

So you have your rental property ready to go and now you need to show it. You've advertised that it is open for viewing on a certain day and time and now you need tenants. What can you do to make sure it's a success and not a failure?

Preparation
Just like a good Boy Scout (or Girl Guide), you need to be prepared. Make sure you are confident with your property and the open home will go a lot smoother.

The DO NOT INSTALL List for your Investment property

You have a rental property and you want to make it as attractive to tenants as possible, but there are certain amenities that if you do install, will only create headaches for you. By headaches I mean, they will suck up money on maintenance and time to get them fixed. Anything that is likely to break, will break at some point, so you need to strike a balance between adding a feature that will attract tenants, and a feature that will cause you headaches.

So what are they?

A Pool

Why on earth would you want to install a pool, unless of course the tenant is responsible for all care and maintenance? You do not want to be responsible for cleaning filters and green pools and broken pumps. This is also does not take into consideration laws around fencing and pools. Pools also includes spa pools too. Lots of headaches here.

Waste disposal

How many times do you want to be called out because of the tenant shoving eggshells down the waste disposal and jamming it? Yes there are good quality waste disposals units around, but a  fork being munched in the unit will adversely affect it forever. So avoid it.

Bidet

Anything over and above the basic bath/shower/toilet and vanity is probably asking for extra work. You could consider installing a heated towel rail to add an extra touch, but again, anything that may break will break, so just be prepared.

Make Improvements to your Rental Property - on a Tight Budget

So you have a rental property but a very tight budget to make improvements on it.You know you need to add value to maximise returns on your rental, but what can you do?

The good news is you can keep your rental in good condition and add value without breaking the bank. By making upgrades and renovations wisely, you will not eat into your maintenance budget  and you can still come out on top. So where to start?

What could you buy for $300k?

So you have $300,000 and you want to invest in property. What solid properties are available in some popular places across Australia?

Here are some options:

Lakelands (Perth/Mandurah) WA

For Sale $298,734

This is a 3 Bed, 2 bath property, garaging for 2 cars. It is 'on the doorstep' for activities such as fishing, cafes and restaurants.

What utilities are you responsible for?

As a landlord you know you know you have to pay taxes, the mortgage, maintenance costs, fees to any of your team members that you may use on a regular basis (like a property manager for example)  But what about utilities, can't you just make your tenant pay for everything?

Well in a way they are through the rent that they pay, but this comes directly from the Consumer Affairs Victoria website.  Which spells out exactly what tenants and Landlords are responsible for

Water

If the property has its own meter, the tenant must:

• pay for water consumption, and
• (in the Melbourne metropolitan area) sewage disposal, unless the landlord has agreed to pay these charges.

House vs Apartment: Which investment is right for you?

One question that comes up more than any other is, “Wouldn’t a house with a backyard make a better property investment than a one bedroom apartment?” The answer is the most frustrating of all -  “it depends”! It depends on the property, it depends on your budget, it depends on the location, and it also depends on your investment strategy.

Choosing a House for your Investment

• Houses have better potential for growth. Land will always appreciate and there is more land attached to houses than apartments. Land is also in short supply. In following the principal of supply and demand this means that good growth is to be expected. 
• Greater capacity for development. It is possible to increase the market value of a house through decorating, landscaping, extensions and remodelling.  The same scope for improvement is not present in an apartment. 

7 Investment Property Calculators

So you are considering buying an investment property - good choice! It can feel overwhelming with all the numbers to keep in mind - Do I have enough money? How much money will I make? How much rent to charge?  There are a lot of free calculators online that will help you give you an idea of the numbers. I would recommend if this is your first time out, that you develop your team who will be able to give you full and complete advice on what to do.