Stress less about your investment

Property Manager Melanie Schott, from One Agency Kane Downie, has been in the business for over 20 years.

Here are her top 5 tips for success:

Appoint a property manager
Having an external party manage your investment property can save you money and stress in the long run. The cost of hiring a property manager is usually a percentage of the weekly rent.  Property managers are the go-between tenants and landlords and will manage everything from maintenance to regular inspections, to finding tenants. “A good property manager is there to work for the landlord and the tenant. Both parties are equally important for the ongoing success of the investment,” Melanie says. And her best advice when choosing a property manager is to ask other landlords and tenants about who they use. “Also, go local and look for managers who know the area where the property is based. And make sure you can speak to the property manager easily and you’re not dealing with a centralised service.”

What makes a great property manager?
Do they care and are they are a good communicator? These two qualities are extremely important and can be the difference between an okay property manager and a great one. Melanie says good property managers should be accessible, quick to respond to issues and be across all the relevant legislation to ensure the landlord is compliant. And communication is key. Enquiries from tenants and landlords should receive a response within 24 hours.

Know your rights & the rights of your tenant
Understanding your rights and responsibilities as a landlord is essential to success. It can also avoid costly situations down the track. Most state based consumer affairs departments have the information you need in simple to understand fact sheets (you won’t have to pore over the legislation!). Landlords should always keep in constant contact with their property manager in case legislation and compliance changes. But Mel points out, it’s also important to get your head around the rights of your tenant. Common disputes between landlords and tenants are over rental bonds, rental increases and arrears, and the repairs and maintenance of the investment property.

Don’t always go for the highest rent
A good tenant can make or break your investment. You’re relying on the tenant to take care of your home and pay their rent on time. A good property manager will conduct a thorough vetting process of the applicants. Mel’s advice is to not rush into accepting the first application and remember the highest bidder may not always turn out to be the best tenant. If you’re a concerned or nervous landlord, Mel says talk through the top 2 or 3 applications with your property manager and go through the pros and cons of each.  Don’t be afraid to do a social media check up on them either. The extra clues could be helpful in making a decision.

Pets or no pets?
There’s no right or wrong answer on this one.  Some people are pro pets and others aren’t. Generally, the demand for pet friendly properties is high, so if you’re open to having pets then you’re opening up to a greater number of prospective tenants. You can include specific clauses in leases to cover damage caused by pets. Mel says this is a really personal decision, and the vast majority of pet owners are responsible.