Property investors would love to be able to buy in an area before it becomes •up and coming• in order to buy cheaply and reap the benefits of a subsequent increase in property prices. There are certain indications that a suburb may boom, but none of them are set in stone - you can never be sure.
When choosing a property manager you need to select someone who knows the law and is confident in applying the law. You need to choose someone who will pay attention to the finer details and continually strive to maximise the return on your investment.
Education, ongoing training programs and seminars are also important for a property manager to keep abreast of changing legislation and market conditions. Property management is no longer just collecting the rent; it is a comprehensive management service which should be provided by a professionally trained property manager.
Tenants should be treated with respect.
There is significant competition to attract quality tenants. Tenants require, and have the right to, reasonable standards of housing and living conditions.
Relationships between tenants, lessors and agents should be built on respect. Tenants deserve to be greeted with respect at all times.
Under federal and state anti-discrimination laws, real estate agents cannot accept discriminatory direction from lessors. Both the agent and the lessor are legally liable if complaints are made. It is neither fair nor lawful to pressure an agent to
break the law.
It is important that you engage tradespeople that are adequately insured and licensed to minimise your liability should a tenant injure themselves from faulty workmanship.
Be sure to keep your investment property records (rental income statements and invoices) in a safe location. These will be required for taxation purposes.
Keep the lines of communication with the real estate agent open at all times. Honest, open communication is the best way to maintain a happy and professional ongoing relationship
Routine inspections should be regularly carried out on rented properties to ensure that the tenant is caring for the property and also to ensure that the property is well maintained and safe for the tenant to live in. A lack of maintenance on a rental property not only hinders capital growth of the investment, but also could lead to an injury claim if the property is not safe.
This article courtesy of the Real Estate Institute of Australia