Buying your first investment property is a big achievement, but becoming a landlord can seem overwhelming at first. Before collecting rent and watching your investment grow, you need to get things in order. Here is our checklist to help you.
1. Consider who manages the property
While it’s possible to manage your property, it is worth hiring an agent who can take care of the ins and outs of renting out your home. This includes finding suitable tenants, collecting the rent, and dealing with issues like maintenance and repairs.
When looking for a property manager, find someone local and experienced. Reach out to a couple of agents for a chat to see if they meet your requirements.
2. Get landlord insurance
Landlord insurance protects your investment property from any loss or damage caused by a tenant or natural disaster.
It’s not compulsory, but taking out insurance will give you peace of mind, and you won’t have to worry about any possible setbacks from issues that arise.
Compare different insurers as not all policies are the same. Make sure you understand what you’re covered for before signing anything.
3. Inspect regularly
Even if you have a property manager, you should attend rental inspections. You’ll be able to see that your property is being looked after well and monitor for any maintenance issues.
4. Know your rights
Spend some time to understand your rights and responsibilities as a landlord. It will prevent you from ending up in costly situations.
A good starting point is your state’s tenancy legislation, which covers things like rental payments, access to a property, and ending a tenancy. You should also look at your rental agreement, which sets out what you and a tenant can and cannot do.
5. Look after your tenants
If you are lucky to have good tenants, do what you can to look after them. Ensure the property is well maintained, be reasonable with any rent rises, and promptly address any issues.
We can help connect you to local and experienced property managers. Get in touch with us today for our recommendations.
