5 things you need to know as a new property investor

If you’re a new property investor, no doubt you’ll have some questions about what you need to do and what you need to be aware of. Here are five important things that you need to know as a first-time property investor.

1. What is landlord insurance?

Landlord insurance is highly recommended for all property investors. It provides coverage for a whole range of situations that you may encounter including:

• Repairs needed due to damage or vandalism by tenants or their guests
• Replacing items and fixtures that have been stolen by previous tenants
• Loss of rent because tenants have defaulted and left the property with arrears
• Any legal expenses that are necessary to evict tenants who refuse to leave
• Public liability claims if a tenant is injured while on the property and decides to claim damages

While these things might not happen because there are many excellent tenants out there, it’s far better to be safe than sorry as any of these situations could leave you out of pocket.

And, accidents do happen.

Having landlord insurance will provide you with complete peace of mind knowing that if something does go wrong, you’re covered.

2. How do I find the best tenant?

If you want to ensure that you find the right tenant for your investment property, you need to engage a reputable property manager.

In the first instance, your property manager will advertise the rental and organise viewing times for prospective tenants. Each prospective tenant will then be encouraged to fill out a comprehensive application form.

Your property manager will fully vet all the applications received for the rental of your property and conduct extensive background checks on the applicants. You’ll then be presented with a short list of suitable tenants and you get to choose who you want to rent your property to.

This means that you don’t have to do any of the work yourself and ensures that you’ll end up with excellent tenants who will not only care for your property but also pay their rent on time.

3. How do I present the property, furnished or unfurnished?

Whether you present your property as furnished or not will depend on the type of tenancy that you’re offering. If you only intend to rent your property short-term, then having it furnished is a great idea.

However, if you plan on a long-term tenancy, then it’s better to have the property empty. Most long-term tenants will already have their own furniture that they can bring with them.

Essentially, this encourages your tenants to stay for the long term which, in turn, will save you money because you don’t have to constantly find new tenants.

4. How do I set the rent?

When it comes to setting the rent for your property, it’s better to leave this to the professionals. Your local agent will have a good understanding of the market and will be able to advise you on what the going rate is for properties similar to yours. You don’t want to overcharge, nor do you want to leave money on the table.

With a competent property manager in place to look after your interests, rent increases can be negotiated at the end of each set-term lease.

5. How do I manage maintenance?

At HPA we have a trusted team of professionals that we can use to attend to any maintenance needs. Our property management team will build rapport with your tenants so that they feel comfortable bringing any issues to our attention promptly.

This means that minor problems can easily be resolved before they turn into major issues that may involve huge maintenance costs.

We are the leading boutique property management agency – talk to us
At HPA, we have a wealth of experience in buying, selling and managing properties on the Northern Beaches. We have been managing investor property portfolios for many years and are always happy to have a chat with you about your needs. So, don’t hesitate to give us a call.