Advice For Landlords in Perth.
True rental value of my property?
Perhaps the most important question facing you as an Owner (landlord), concerns the rental price you should ask for your property. You certainly do not want to rent it too cheaply, nor do you want to prevent it from being leased by overestimating the gross rental value. Below is some advice for Landlords from LJ Hooker City Residential.
Consider the Following Points:
- The rental price that your property will yield is determined by what someone is prepared to pay. This is influenced by: recent rental history including the performance of other properties in the same location, the property’s presentation, its features, extras, space and the marketing pitch.
- Overpricing is the surest way to avoid renting your property and obtaining early income dollars. Tenants are educated to shop around and find the best value for their money. Properties that lease the fastest are those that are advertised at the true current rental value. Stacked rental properties will sit longer, grow tired and usually are only let when a reduction in rent is applied usually after a period of frustration.
- Keeping a well maintained, clean and tidy investment property will attract well qualified applicants and encourage a high standard of tenant paying the best possible price.
Personal advice is available from your well trained LJ Hooker Property Manager concerning property presentation and attention to detail to maximise presentation prospects.
The Pitfalls Of Self-Management
People who don’t have the time, the knowledge or an interest in property management can be burned if they try to be their own property manager. Many landlords simply don’t have the time to respond to maintenance requests or conduct regular inspections to address potential liabilities. While it can be tempting to save a small percentage of rental income by self managing your property, the benefits of appointing a property manager far outweigh costs.
Poor tenant selection can lead to a series of problems that may be time consuming and expensive to fix. You need to screen prospective tenants carefully. A professional property manager will be able to help with this as they have access to a default register that lists tenants who have caused past problems. It is also important to thoroughly check and phone all of the referees, past property managers and all details provided by the applicant.
Tenants as Friends
Ideally the relationship between landlord and tenant should be at arm’s length. Too close a relationship can lead to difficulties down the track, especially in situation where the parties have a falling out. It is best to have a professional property manager that won’t be swayed by personal interest.
For your own peace of mind, we ask that you speak to us at LJ Hooker City Residential before you contemplate self-management of your investment property.
Landlord Protection Insurance
At LJ Hooker City Residential we encourage all our Landlords to have Landlord Protection Insurance on their managed properties. Although we are meticulous in our selection process, we have found that Landlord Protection Insurance can give the owner peace of mind in the event that a tenant does default in their tenancy agreement.
Just some of the benefits offered are:
Loss of Rent caused by
Premises left un-tenantable due to malicious damage to building and contents
▪ Absconding tenants
▪ Defaulting payments resulting in eviction
▪ Prevention of access
▪ Failure to give vacant possession
▪ Death of a tenant
▪ Tenant hardship
Loss or damage - Contents
Accidental loss or damage
▪ Malicious damage by tenants
▪ Fire, explosions, earthquakes
▪ Storm and rainwater
▪ Water damage
Fusion – (limit $2,000)
Loss or damage - Building
▪ Malicious damage to structure by tenants
▪ Theft, damage to structure of building by
▪ Tenants, their family or invitees
As a Landlord for an occurrence which causes
▪ Damage to other people’s property
▪ Death or bodily injury to other people
The above extracts are from the Terri Sheer Landlord Preferred Policy.
Should you have Landlord Insurance through another provider, please check to ensure that they offer the above benefits.
Here is our step by step guide for managing your investment property in WA. This guide covers the different ways you can set up your investment, working out how to finance it, the specific WA property taxes, where to search for a property and guidance around using a property manager and questions to ask.
Click here for the Guide to Managing Your Investment Property in WA