TIP 1 - Tenancy Induction
Selecting the right tenant for your property is extremely important.
Equally Important is to provide a thorough induction with your tenant at lease commencement so that they fully understand your expectation, and what their obligations are in relation to the tenancy
While most tenants take good care of the property they are leasing, our experience is that a lot of the issues that can arise throughout a tenancy could have been avoided should the tenant have been made aware of what is expected from them & what their obligations are from the start.
All our tenants are issued with our 44 page tenancy handbook which provides a comprehensive tenancy induction and covers everything they need to know from the moment they collect the keys right through to the day when they move out, and includes
- Moving into the property
- Rent and water payment expectations
- Taking care of the property inside and out
- Inspection checklists
- Maintenance Reporting
TIP 2 - Landlords Insurance
Not all tenants are bad, but you do need to make sure you are covered if something goes wrong.
While most tenants take good care of the property they are leasing, those that don’t may intentionally cause excessive damage. Intentional damage is not covered by many standard home insurance policies, nor is the failure to pay rent.
The valuable common features of a landlord insurance policy include: Malicious or intentional damage by tenants or their guests, Theft by tenants or their guests
Loss of rent if the tenant defaults on their payments Liability, included for a claim against you by the tenant
It is important to remember that not all landlord protection insurance policies are the same, so check with the insurer so you can be assured that you have the appropriate cover.
TIP 3 - The Final Inspections
At the end of the tenancy the property should be returned in a condition similar to as it was when the tenant took possession, but with allowances made for “fair wear and tear”
To minimize the risk of conflict and to give the tenant every opportunity to get their full bond back, we suggest providing them with a “Getting the property ready for vacating” guide which will help them in passing the final inspection.
Releasing the Tenants Bond!
Only once the property has been fully vacated, cleaned and grounds made ready, can the final inspection be conducted. Tenants no doubt will want the bond refunded quickly, but before doing this landlords will need to satisfy themselves that:
- All outstanding rent has been paid
- The property has passed the final inspection
- All outstanding accounts such as water, any damages, Lease break fees have been paid
- All Keys have been returned
TIP 4 - Inspection Reporting
By conducting a thorough tenancy induction, the commencement of the lease with an emphasis on your expectations greatly reduces the risk of unsatisfactory inspection reports. Ensure your tenants are: Issued with our comprehensive tenancy handbook which clearly details our expectations (our contains 44 pages of information for tenants) Prior to each inspection issued your tenant with a notice advising of inspection date & time, along with a checklist to help guide them in preparing the home for the pending inspection. Should the inspection report not meet the required standard, always conduct a reinspection!
TIP 5 - Tax depreciation for investment properties
Claiming tax depreciation deductions on your investment property has become an important part of a property investing strategy, but the legalities surrounding property depreciation can leave many property investors scratching their heads.
In order to claim deductions for property depreciation a tax depreciation report should be obtained for each income-producing building. These reports must be prepared by an appropriately qualified person.
'BMT Tax Depreciation handbook'
We have available to you an information booklet on "Depreciation for Rental Properties." As part of our rental management service we are always conscious of endeavouring to help property investors maximise their income.
TIP 6 - Preparing your home for sale
In life your home and investment property are possibly your biggest assets. With this in mind it is important to do all you can to maintain the property to protect & grow the asset, so at the time of eventual sale you receive the best possible return on your investment.
A home that doesn't require work is a more attractive prospect, & buyers will generally pay more for a finished, neat & well-maintained property.
When the time comes to sell your property, we suggest:
- Think like a purchaser
- Make a list of areas in need of repair
- Plan ahead of time
- Project manage the repairs with a slow and steady budget approach