How to be a great landlord (and still make great returns)
Owning an investment property in Perth is a smart strategy to secure your financial future. However, it is a give-and-take arrangement with your tenants. If you’re a ‘great’ landlord, the people who live in the home will stay for longer and treat your property with respect. Meaning you will save money and maintain the value of the home.
Here’s what you need to do to be a great landlord in Perth:
Price fairly and raise the rent selectively
Pricing your investment home or apartment can be tricky, especially when the market is tight for renters. To be a good landlord, the amount you charge needs to be reasonable and in line with similar properties in the area.
When it comes to increasing the rent, try not to push things up too drastically in one go. Ensure your tenant has plenty of notice and stay within the rules (for example you can’t raise the rent every couple of months).
If you do want to achieve above-average rates (and it can definitely be done), find ways to make the home more appealing, for example consider upgrading the kitchen to be more functional and modern.
Be open to reasonable requests
Perth is a family-friendly city that is hot in summer and can be cold in winter. If your tenants request an air conditioner, remember the saying about a bird in the hand being worth two in the bush. Your property manager can explain the long-term value of adding an air conditioner and help you figure out if it is worth the investment.
Similarly, be open to conversations about having pets on the premises. It can be very difficult to find a place to rent with an animal in tow but if you allow your tenants to have a dog (under certain conditions), they are likely to stick around.
Maintain the property
Keeping the property in good condition is essential to being a great landlord and the bonus of doing so is that it will help protect your investment.
Book tradespeople to visit regularly for maintenance and be responsive when repairs are needed. As a tenant, there is nothing worse than having your requests for things to be fixed going ignored, so have tradespeople who you can call on (or make it easy for everyone by having a fantastic property manager who will do this for you).
Regular maintenance and professional repairs will stop small problems from becoming large/expensive ones, while giving your tenants reason to stay for longer.
Be clear about responsibilities
Communication is key when it comes to avoiding misunderstandings and conflicts with your tenants. Be clear about expectations for maintenance and repairs, and have conversations about who is specifically responsible for what. This can be in regards to mowing the lawns, clearing the gutters etc. If they agree upfront to take on these jobs, they will be less likely to complain if you ask why they are not done.
Get conversations and expectations in writing to avoid confusion. Open communication makes the relationship better for everyone.
Be accessible (or find someone who can be)
Great landlords ensure someone is available to respond to calls almost 24/7. If you don’t like the idea of having your day interrupted, bring a property manager on board to take care of this job for you.
Be respectful
Above all, treat your tenants with respect and they will be more likely to treat your property with respect in return. Don’t drop by unannounced, but do listen to any concerns or feedback that your tenants may have.
If your tenants feel comfortable and secure in their home, they will be more likely to be loyal to you.
Understand and follow the law
As a landlord, it’s important to understand and follow the rules.
Some of the key legal requirements for landlords in Western Australia include providing a written tenancy agreement, giving notice before entering the property, and returning the tenant’s bond at the end of the lease. Make sure you understand your responsibilities as a landlord and follow the law to avoid any legal issues.
Work with a quality property manager in Perth
The absolute best way to be a great landlord is to outsource the day-to-day management of your property to a professional.
Working with a quality property manager can be a game-changer for landlords because everything will be handled for you. The price is small in return for the peace of mind that your investment and the people who live in it are being taken care of. It also means you’re able to focus on the things you enjoy and love.
Tenants appreciate being able to work with a responsive, respectful and knowledgeable industry expert, so if you want to be a good landlord, one of the best things you can do is get the right help.
The best property managers in Perth have the goal of increasing the value of their clients’ investments as well as taking care of day-to-day requirements. To find out more about the proactive services D Residential offers property investors in Perth, get in touch today.
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