Real Estate can make for a fantastic investment. However, you need to be careful as there are many risks involved when you rent out your new property. As a new property owner you may encounter challenges in finding and retaining good tenants. Before tenanting your new investment property it is worth becoming familiar with the property laws in your State so that you know what actions to take if or when tenant issues arise.
One issue which often arises is the repayment of bonds at the end of a lease. There is quite often a very large gap between the landlord’s views and expectations as to what the bond money should be used for and the tenant’s legal responsibilities. Landlords are often emotionally attached to their properties and expect the tenants to leave the property in immaculate condition. The landlord needs to be realistic and allow fair wear and tear over the course of a tenant’s lease, which may well increase with the length of time that the tenants have resided in the property. An emotional connection to the property can influence what the landlord perceives to be a reasonable standard for cleanliness, yard and garden maintenance etc.
Some landlords choose to manage their properties privately and save on real estate management costs. However, when a landlord doesn’t engage a property manager, the landlord needs to ensure that they are familiar with tenancy laws, abide by these laws, as well as keep a very accurate record of rental payments. There are other processes under the residential tenancies act regarding inspections, remedy and breach notices which must be assiduously followed by landlords if they are to self-manage properly.
When a tenant moves into a property, they may often complain that the property is not ‘clean’. This can be a difficult issue as cleanliness is subjective. The tenant should inform the landlord if there are any issues with the property as soon as they move in. Records should be made and kept of the condition of a property at the beginning and end of each tenancy. This may avoid disputes, or assist in resolving them if/when they arise. Taking photographs is a great way to prove that the property was left or handed over in a certain condition.
When selecting a property manager, you should consider the percentage of properties that are in arrears for the agent, as this may be a performance indicator. Additionally, consider how much should be set aside from your rental income for maintenance issues in the future. Doing that in advance saves you from trying to find the money to meet expenses.
Remember, it is important to shop around when looking for a rental agent, their charges vary greatly. Many charge high fees for telephone calls, postage and sundries, on top of management fees. Check the reputation of your agent by Googling their name and check any online ‘reviews’. If a Facebook page is available, see what their customers have to say about them. This might be the best way to find out about common disputes that the agency has with their landlords.
Above all else, make sure you find an agent that you not only trust, but that will keep in touch and conduct regular three monthly inspections. A proactive and communicative property manager is what you are looking for.
Remember it is your property but your tenants have rights too.
Buying or selling your investment property contact Just Us Lawyers – for the best Conveyancing lawyers in Brisbane call/email Just Us Lawyers or complete our enquiry form for a quote today.
