Things to consider when buying an Investment property

[signoff icon=”icon-help-circled”]QUESTION: “Marnie from Broadbeach,  I am buying my first investment property.  What are the most common problems encountered between landlord and tenant?[/signoff]

1.  EXPECTATIONS.   What are your expectations as a landlord. Is this a heart buy or a head buy.  do you expect them to  live in the property the way you would,  you will be disappointed. The are 16 different legislations that govern  the tenancy so bone up, it’s a mine field and the world is full of interesting people.
Do you expect them to maintain a pristine garden with bowls club lawns and stunning gardens,  its not going to happen.  Being very clear about your expectations taking the legislation into account t is paramount,  make sure its in writing.  Remember you cannot contract outside the agreement so ensure the terms and special conditions are within the act.

2.  RENT & ARREARS.  Bad things happen to good people.  The term of the tenancy will not always go smoothly,  people lose jobs, get sick, crash cars, lose licences, die.    All of these events impact of the ability to pay the rent,  have good communication and acting quickly and fairly within the legislation is vital. Issuing notices within correct time frames is essential. You can always take a breach notice back but its hard to catch up if you don’t do it when it is due.


ARTICLE CONTINUES AFTER THIS ADVERTISEMENT


3. REPAIRS & MAINTENANCE   Landlords are responsible to repair and maintain the property to a habitable standard, that’s means fixing door locks when they break, replacing flyscreens when they deteriorates due to age, replacing faulty power points and the like,   if the property has a dishwasher, dryer or air-conditoner in the property and it has been advertised with them in place , they must be in working order for the term of the tenancy. they have to repaired or replaced if they breaks down, that’s the facts. So ensuring you factor those repairs and  maintenance into your budget will ease the pain along the way.  Things like light bulbs, tap washers and even gutter cleaning are also owners responsibility (Fixture & Fittings)   beware of doing your own repairs and maintenance unless you are a licensed professional,  there are many cases of fact in court action being taken against a landlord who botched a repair.  Think worst case scenario and then double it.  Under no circumstance should you attempt anything electrical or plumbing unless you are a licensed professional.  Ensure you get all requests for maintenance and repairs in writing so you have records, keep records of what and when you attended to the issues and your communication with the tenants .  know what is a repair, what is an emergency repair and what is routine maintenance. This will save you a great deal of angst in the future.

4.  ENTRY & EXIT  Making and keeping good records is essential to the smooth running of the tenancy, issue receipts for rent and keeping accurate ledgers is the law. have a thorough ingoing condition report with at least 50 photos and have the tenant sign and date all copies. Make sure all maintenance is attended to at entry and have the records reflect this. Carry out routine inspections (issue correct entry notices) and write a report of said inspection.  Keep good records of the condition of the property during the tenancy, you may need to refer to those records if there is a dispute at eh end of the tenancy.

5. ENGAGE AN AGENT  managing property investments is a professional job, 16 legislations, the court system, the discrimination act to say the least can send you nuts,  leave it to a great agent,  see what agent is very active in the area of your investment, online presence, go to their open homes, pop into the office and see how you are treated as a potential tenant. Ask lots of questions,  make sure you have Landlord Protection Insurance,  worth its weight in gold.

replay-footer

first-national-footer

1.  EXPECTATIONS.   What are your expectations as a landlord. Is this a heart buy or a head buy.  do you expect them to  live in the property the way you would,  you will be disappointed. The are 16 different legislations that govern  the tenancy so bone up, it’s a mine field and the world is full of interesting people.

Do you expect them to maintain a pristine garden with bowls club lawns and stunning gardens,  its not going to happen.  Being very clear about your expectations taking the legislation into account t is paramount,  make sure its in writing.  Remember you cannot contract outside the agreement so ensure the terms and special conditions are within the act.

2.  RENT & ARREARS.  Bad things happen to good people.  The term of the tenancy will not always go smoothly,  people lose jobs, get sick, crash cars, lose licences, die.    All of these events impact of the ability to pay the rent,  have good communication and acting quickly and fairly within the legislation is vital. Issuing notices within correct time frames is essential. You can always take a breach notice back but its hard to catch up if you don’t do it when it is due.

3. REPAIRS & MAINTENANCE   Landlords are responsible to repair and maintain the property to a habitable standard, that’s means fixing door locks when they break, replacing flyscreens when they deteriorates due to age, replacing faulty power points and the like,   if the property has a dishwasher, dryer or air-conditoner in the property and it has been advertised with them in place , they must be in working order for the term of the tenancy. they have to repaired or replaced if they breaks down, that’s the facts. So ensuring you factor those repairs and  maintenance into your budget will ease the pain along the way.  Things like light bulbs, tap washers and even gutter cleaning are also owners responsibility (Fixture & Fittings)   beware of doing your own repairs and maintenance unless you are a licensed professional,  there are many cases of fact in court action being taken against a landlord who botched a repair.  Think worst case scenario and then double it.  Under no circumstance should you attempt anything electrical or plumbing unless you are a licensed professional.  Ensure you get all requests for maintenance and repairs in writing so you have records, keep records of what and when you attended to the issues and your communication with the tenants .  know what is a repair, what is an emergency repair and what is routine maintenance. This will save you a great deal of angst in the future.

4.  ENTRY & EXIT  Making and keeping good records is essential to the smooth running of the tenancy, issue receipts for rent and keeping accurate ledgers is the law. have a thorough ingoing condition report with at least 50 photos and have the tenant sign and date all copies. Make sure all maintenance is attended to at entry and have the records reflect this. Carry out routine inspections (issue correct entry notices) and write a report of said inspection.  Keep good records of the condition of the property during the tenancy, you may need to refer to those records if there is a dispute at eh end of the tenancy.

5. ENGAGE AN AGENT  managing property investments is a professional job, 16 legislations, the court system, the discrimination act to say the least can send you nuts,  leave it to a great agent,  see what agent is very active in the area of your investment, online presence, go to their open homes, pop into the office and see how you are treated as a potential tenant. Ask lots of questions,  make sure you have Landlord Protection Insurance,  worth its weight in gold.

Subscribe
Notify of
0 Comments
Inline Feedbacks
View all comments