Whether you currently have an investment property or plan to in the future, being aware of expenses you are likely to run into as a landlord in the Hornsby Shire and Upper North Shore is so important.
Our Property Manager, Natasha Davidson and Senior Property Manager at Ray White Hornsby, Kitty Deng, share their tips on how landlords can avoid unnecessary expenses to help reduce property outgoings.
Find out how to become a savvier investor and extract more from your rental property.
1. Understand and be aware of common expenses
Being aware of the costs you might come up against in the Hornsby Shire is important for managing the costs and time required to address these issues.
In the Hornsby market investing in apartment living is popular with some houses and townhouses also acquired for investment.
Appliances, smoke alarms, swimming pools and gutters regularly require attendance in these types of properties, in addition to regular termite inspections and garden upkeep.
Strata levies are a common cost for most landlords in the area and repair jobs often include plumbing, electrical and general handyman tasks.
2. Find the right tenant
It all starts with the tenant selection process. The right tenant will help to keep your property in great condition. Our recent blog, ‘What makes a good tenant’ outlines advice for landlords for a stress-free and thorough tenant selection process.
Proactive communication with your tenant can also help to curtail unnecessary costs and catch minor maintenance jobs and repairs before they become expensive. A professional Property Manager will open the lines of communication with your tenant.
3. Get in a routine
We understand that the costs of regular maintenance on a rental property can be a burden, but keeping your property well maintained could help you avoid large scale repairs and emergency call out fees.
Updating carpets, paint and blinds every 5 to 7 years will not keep your tenants happy, but also allows opportunity to check for hidden issues such as mould and termites. A neutral palate will appeal to a broader market and give your property a better chance of attracting a great tenant quickly.
Regular routine inspections at your rental are imperative to stay up to date with the state of your property. At Ray White Hornsby, we conduct routine property inspections every four months which ensures the property is kept well and issues are promptly communicated to the owner.
4. Foster an expert team
There are 3 key people you need on your investment property team: an accountant, and insurer and a great property manager.
A.) An accountant
A professional quantity surveyor and accountant can work with you to help you manage your deductions and depreciation more efficiently and stay abreast of federal and state policy changes that could impact you as a landlord.
B.) An insurer
Do you have landlord insurance? Not all landlord insurance is created equal, excess and inclusions can vary substantially and the wrong cover could leave you out of pocket. Speak to your property manager about the various options available that could suit you.
C.) A great property manager
A great property manager will advise on necessary maintenance, effective communication with your tenant and help you compile the paperwork you need for your tax returns. This could save you substantial costs in loss of rent, maintenance and tax.
5. Keep your tenant happy
Having a happy tenant who will not only look after your property but stay in the property for the desired period of time can save you the cost of maintaining a vacant property and loss of rent during this time.
Fostering a positive relationship can also save you, as your tenant is likely to only contact you when a genuine issue arises, reducing the time you need to spend resolving unnecessary issues.
If your property is on the rental market and is overpriced this cost can skyrocket the longer your property is vacant, a small rent reduction can save you more in the long run than a vacant property that sits on the market for weeks.