Buying an investment property is only the initial step. The next big step is managing the property successfully. Once you have bought your property, you need to focus on maintaining it properly. Managing an investment property requires some very specific actions that you need to perform. Here are 4 key tips to manage your property and make your investment successful.
Proper Property Maintenance
The most important thing that you need to do is proper maintenance of your property. This is very important because, under the landlord-tenant law, you are responsible for keeping your property in a certain health and safety standards. Another reason is, if your property is not maintained properly then you will have a very hard time finding tenants. Renters don’t want to live in a rental with maintenance issues.
Hire a Property Manager
Managing an investment property is time-consuming and can be enormous. Hiring a property manager to maintain your rental property could be the right way to solve this problem. Some landlords hire property manager only to collect the monthly rent, while you can hire them to do anything you want like property maintenance, rent collection and other necessary tasks.
Hiring a property manager may cost you a big amount of money. So you need to calculate all your financial expenses to decide whether it is a right decision of hiring a property manager. Make sure that you hire good property manager because there are many bad managers who can completely destroy your property.
Keep a Good Relation with Tenants
Another key tip to manage your rental property successfully is to keep a good relation with tenants so that they will want to keep renting from you. There are simple ways to keep your tenants happy, such as quickly responding to repair requests and placing good tenants into the property. One of the main reasons tenants move is due to the lack of good relationship with landlords. Make them happy and also apply some strict rules and regulations so that you can filter the good tenants from the bad.
Get Proper Insurance Coverage
Another big step to overcome any kinds of financial losses is getting a proper insurance for your investment property. An insurance can cover you if any damage happens to your property. A landlord insurance or investment property insurance can cover you from the following cases:
- Accidental damages
- Natural disasters
- Manmade disasters
- Tenants default
- Theft or burglary
- Damages caused by guests
There are many insurance companies providing rental property insurance in Australia. You should talk to the insurance agents from several companies to compare the insurance coverage each of them will offer to you and you should take the best investment property insurance quotes that cover all of your requirements. Keep in mind that there are many bad insurance agents who will take you as a fool and damage your property.
Focus on the key management procedures first and set your rental price appropriately to attract tenants. An investment property can be a good source of income if properly managed. Make sure that you follow the steps I have discussed above to get the best from your investment property.