If you’re thinking about purchasing a house and land package and renting it out for the first time, or if you’re on the lookout for new tenants for your existing investment home, here’s a few things you should take a moment to consider.
Use a Property Manager (or not)
This is a tough decision, but it really depends on the time you have available. Self-managing a property can be a very time-consuming exercise and most people decide to let an expert take care of things. If your property is being rented out as an investment, the fees paid to a Property Manager are generally considered as a tax deduction, which can be hugely beneficial.
Whatever your decision, it’s important that you, or your Property Manager (preferably both!) are familiar with:
– Screening tenants and checking references.
– Managing complaints and potential evictions.
– Establishing how and when tenants pay rent.
– Managing property condition reports.
– Organising repairs and maintenance.
Increase your rental return
Lots of small features, when combined, all work to make your property more appealing to tenants and as such will increase your rental yield. For example, adding reverse cycle air conditioning can help your property stand out from the pack. However, it is important that you sure what you spend on your property is a worthwhile investment. My Vantage has a range of features that we can incorporate into the design of our wonderful house and land packages which can assist you in increasing the profitability of your property.
Charge the right price
The rental price should be set at a level where you can attract and retain tenants. It’s a good idea to do some research on your local area online to see what similar properties are being leased for.Compare the location, land size, number of bedrooms and bathrooms and overall condition of the comparison properties before setting your rental price.If the number of enquiries or applications you receive is underwhelming, you’ll quickly know if you’ve priced it too high. If this does happen, it’s important to adjust the rent to suit market conditions, and avoid the property being vacant for long periods.
Get Landlords Insurance
Purchasing landlord’s insurance is vital. Whilst most people will be respectful and take care of the home, there’s always a chance that things could be damaged.Landlords Insurance will give you peace of mind, protect you from liability and may even cover instances where a tenant doesn’t pay the rent.It’s important not to confuse this with renter’s contents insurance, as most policies won’t cover a tenant’s personal belongings.
Whilst you can scrimp and save on several things around your investment home, photography isn’t one of them. A professional photographer is a must! For between $150-$200, a photographer will shoot your home and touch up the images, allowing you to advertise the home when it’s looking its best. And remember, the more people who view your home online, the more applications you’re likely to receive.
Choosing the right home to build and where is so important and My Vantage specialises in the incredible opportunities offered by North west Sydney. Our expert team have a huge range of home and land packages for you to choose from.Not sure if you are eligible for a home and land package loan? Get in touch with us and we will see if you qualify. Want to learn more? Contact us today!