There was a time when tenants lined up on the streets to get into a rental inspection.
Those were the times when tenants would offer higher amounts than your asking price just to beat the 5 other applicants they were competing against!
Those days are gone and it will likely not come back! That’s the reality.
As a landlord you’re likely starting to see that your property is vacant for longer than you’re used to, rent achieved is lower than what you’ve received in a very long time. Your tenant is fussy and you have to do all kinds of repairs works to keep the mortgage paid.
What can you do to cope with these changes?
Drink a glass of wine each time you receive your rental statement. Make it two when you get a repair request.
Here are the things you can do to ensure you are ahead of the game:
KEEP YOUR TENANTS HAPPY
Try not to focus on rent return alone, if you’ve got a quality tenant locked in then hang onto them! Increasing rent every year without adding any benefits to the apartment can result in losing your quality long term tenants.
If your current tenant is to leave you’ve got to factor in vacancy, letting and marketing fees not to mention the fact that you may not be able to achieve the same rent you were receiving before.
INSIGHT: Rent that you are currently achieving may be more or less than what the market is currently at. Whatever it is, you will have to either increase or decrease your rent when it comes up for rent to meet the market demand.
INVEST IN QUALITY MAINTENANCE
Make sure your maintenance is done properly: no band-aid fixes. Get qualified
trades to carry out the work and update fittings and fixtures as they start to
show heavy signs of wear and tear. This will mean less out of pocket expenses
when you go to sell and have to do all these things at once.
TIP: Its best to hire established and credible professionals as they offer labour and parts warranty. Avoid one man shows and airtaskers – you can’t claim warranty on a tradie who’s skipped town!
Also, we’d highly encourage not doing repairs yourself if you can help it. WIth professional tradies you get warranty on labour, parts and their public as well as professional indemnity insurance should anything go south.
Before long, landlords used to renovate to get extra rent. Nowadays landlords are having to renovate to get market rent
Renovation doesn’t need to be heavy, a simple update of the main decor in the property would usually brighten up the entire property:
Simply keep your decor fresh and up to date! This needs to be done at least every 7-10 years. These three items can change the overall look and feel of your property, they don’t cost a lot of money but have a huge impact on your rent return and vacancy!
Do you need a New Property Manager?
If you have a property that you need leased out and you want a proactive team of professionals on your side, just give Teejay a call or message.