Many people choose to invest in property because it is a great tactic to build wealth and secure their futures financially. However, too many investors are failing to maximise the returns on their properties because they skip some of the fundamentals, according to Kath Teasdale of Teasdale Estate Agents.
“If you’re looking for strategies to get the most out of your rental property, there are four key things you should be prepared to do”, Kath said.
“The first is to hire a professional property manager, particularly if you don’t have time to study and stay up to date with the legislation that governs your state. The pace of change in a landlord’s obligations can be overwhelming and the consequences of mistakes can be devastating.”
Managing your own rental property can be a difficult task, especially if you have a large portfolio. Even if you want to manage a property nearby to where you live, it can lift a considerable weight to hire a property manager for properties you have that are farther afield.
“The second most important thing is to review your rent. It may be years since you last reviewed the price you’re charging for your rental property and the market can change quite often. Fluctuations in vacancy rates and median rents can all impact on how much you can charge for your property, and you may end up charging too little”, said Kath.
Reviewing rent on a regular basis helps assure a rental property is properly positioned to meet the market. Investors should compare their rental properties with other similar rentals, or obtain a rent appraisal from an agent.
“Thirdly, it’s vital to regularly refresh your rental property. The key to ensuring your rental property remains tenanted is to keep it in good condition. By staying on top of maintenance issues and refreshing the interior, your investment can be kept looking great, and producing a solid yield for much longer”, said Kath.
At regular intervals, investors should give their rental property a fresh coat of paint, have the carpets cleaned and the garden reworked. This helps keep a property competitive in the rental marketplace, makes it look more appealing, and helps attract tenants who care.
According to Kath, another important step is to obtain a tax depreciation schedule for your property from an appropriately qualified tax specialist.
“A tax depreciation schedule helps assure that you are maximising the tax efficiency of your investment property and everybody should do that. The improvement to your rental yield is usually much more than the cost of the report. In fact, some property tax depreciation specialists make such guarantees” said Kath.