OWNER INFORMATION
LANDLORDS FIRST POLICY
We put ourselves in your shoes.
We act as a landlord.
- Total Integrated Management
- Maximising your rental return and capital growth
- Protecting your investment
- Flexability of lease time
- Regular comprehensive inspection reports
- Date stamped photos
- Quality tenants
HELPFUL HINTS FOR LANDLORDS
Buying and owning an investment property can sometimes be overwhelming and complicated.
We have all heard stories about investors who pay too much for a property, or who end up with the tenant from hell living in their property. By avoiding a few simple mistakes, you can have more control when investing in property.
Following is an overview of some mistakes every landlord should try to avoid.
1. NOT HAVING INSURANCE
Insurance is a must for all investors. Insurance gives you peace of mind should something unexpected go wrong with the property.
You need to ensure that your policy covers you for contents (i.e. repair or replacement of carpets, curtains etc) burglary, fire, glass damage, storm and tempest damage to name a few. A public liability policy should be included as part of your insurance package.
It is also worthwhile considering a specialised landlord protection insurance policy which covers you for accidental and/or malicious damage to your property and for loss of rent if your tenant leaves the premises without giving proper notice.
When it comes to insurance remember that policy premiums are a tax deduction.
We recommend that you consult your insurance broker for policy terms and conditions.
2. NOT HAVING AN INTEREST ONLY LOAN
On an investment property, it is only the interest portion that is a tax deduction. Therefore; if you have an interest only loan the total amount of any loan repayments you make are deductible. This has many financial and cash flow benefits for investors because it requires less of your income to hold the property.
We recommend that you consult your Bank Lending Manager, Accountant or Financial Advisor for further information.
3. BUYING AT THE WRONG TIME
Timing is one of the most important elements in successfully acquiring an investment property. Property moves in cycles from boom times into times of stagnant or even falling values. Ideally investors should try to buy when the property cycle is down as this will help to increase purchasing power and maximise benefits for future capital growth.
4. NOT CLAIMING INTEREST
If you borrow money from any source to buy an investment property, make sure you claim the interest on your tax return.
5. BUYING WITH EMOTION
As much as you might like to buy a luxury penthouse in a resort style location, it is important to remove your “emotions”. When it comes to investing in property we have to forget about our desires and think about the financial consequences of our decision. After all it’s the rental value that determines the economic worth of a property, so instead of asking “would I live in this property”, ask “who will live in it”. If the area where the property is located has a good history of strong rental demand and the rent is set at a level that the majority of people who live in the area can afford and it’s close to facilities that the local population demand, then you’re on the right track to making a sound choice of investment property.
6. NOT INSPECTING YOUR PROPERTY REGULARLY
It is highly recommended that you inspect your property at regular intervals. This way you’ll be able to see the condition of the property and be in a better position to determine whether or not you need to carry out any repairs or general maintenance. Inspecting your property for maintenance purposes can also be a tax deduction.
7. NOT HAVING A PROFESSIONAL PROPERTY MANAGER
With changes to legislation and technology the business of managing rental property is becoming more and more complicated. A thorough knowledge of property law, investment analysis and other related skills are required to maximise returns and successfully manage investment property. A professional property manager also knows there is a careful balance to ensure a property remains attractive to the market whilst maximising investment returns.
If you can avoid these mistakes, you will be well on your way to ensuring your investment property performs well to provide you with medium and long term capital growth with a minimum of headaches.
SERVICE GUARANTEE
If for whatever reason within the first three months you are unhappy with the service we provide we will reimburse any management fees charged to you by us for this period. No questions asked.