Plan The Year Ahead For Your Investment Property

The New Year break is great for spending time planning the year ahead. The management of your investment property is no exception.

Some areas that you could benefit from considering includes:

  • Your Property Management Team.
    Consider your level of satisfaction with your property management team. Are there areas that you feel they could better serve your needs and manage what is likely to be one of your largest investments? It is worth chatting to your Property Manager about and areas you see shortfallings to create a path forward with an improved working relationship.
  • Regular, Ongoing Repairs and Maintenance.
    Do you have a schedule of regular repairs and maintenance set up? If not start one so that you can plan what needs doing and when things will be done throughout the year. With a little pre-planning, the adverse effects on your rental income for any one particular period will be minimised. Your tenant will also appreciate your commitment to maintaining your investment, which is also their home.
  • Major Repairs or Upgrades.
    Prepare ahead of time to ensure are paying the right price as you will have tome to get comparative quotes for the repair/upgrade. You will also be able to adequately prepare tenants for any disruptive works that need to be undertaken. Alternatively, be ready to take advantage of the period the property is empty between tenants to undertake any major works.
  • Review Your Rent.
    The best way to get an idea of how your investment return is positioned is by taking a look at what is currently on the market that compares to your property. It can also be advantageous to discuss this with your Property Manager, as they are working in this area on a daily basis and will have good knowledge of the suitable rent you could expect from your property.
  • Review Your Lease.
    Are you happy with your tenants? Plan for the future in terms of getting your Property Manager to approach them with plenty of time before their lease expires to resign their lease. You could also discuss the possibility of a longer lease term if you have great tenants. Consider the rent over that period, some people write in a small rent increase into the longer lease, whilst keeping the rent a little below market, in order to recognise and reward a great tenant. The reason for doing this is there are benefits in keeping good tenants. These include:

    • You don’t have to go through the process of finding new ones (who may not be as good),
    • You don’t have to screen new applicants,
    • You avoid vacancy costs and advertising costs
    • Current tenants are aware of the rules of the property and are reliable with their rental payments

 

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