As the year draws to a close, it’s a good time to re-think and refine your role as a landlord and set your resolutions for 2021.
Reproduced with permission of LJ Hooker
Here are 6 new year’s resolutions that should be on all landlords ‘to do’ lists in 2021.
Resolution 1 – I will visit my investment
When did you last visit your investment property to check its condition for yourself? Even a dream tenant may not report every single issue that needs fixing. Organise a suitable time with your property manager and of course your tenants to do an inspection of the property. Walk through with a critical eye and if something needs to be fixed, fix it quickly. By keeping in touch a couple of times a year with your tenants and staying across any repairs that are needed it’ll help ensure your tenants are happy….and happy tenants make landlords happy too!
Resolution 2 – I will make and repairs and maintenance quickly
Quick and efficient processing of all maintenance requests should be a priority. Talk to your property manager and agree a protocol around how you want them to proceed to fix different issues that may arise. It is also worth giving them specific instructions as to what repairs can be organised on your behalf if you happen to be unreachable. Plus, discuss how they currently handle and report maintenance complaints and their expected timings for completion. Legally you are obliged to maintain your property so this is important for you and has the benefit of keeping your tenants happy too.
Resolution 3 – I will organise my paperwork
No one’s favourite job but it is well worth doing. There is a huge amount of documentation involved in owning a property and it is important to keep it safe for the duration of your ownership and for up to 7 years after you sell the property. An organised filing system for quick access is ideal and should include original purchase documents, all invoices including legal and agent fees and other associated costs, home loan statements, invoices relating to any work you have had done on the property. Additionally, if you have ever lived in the property you should keep evidence of the time spent there as it could reduce your tax liability.
Resolution 4 – I will spring clean my investments
It’s no surprise that well maintained and presented properties attract and retain better tenants, yield higher rents and add value to your investment. Consider painting the walls, or sanding the floor boards, perhaps retile the bathroom or give the kitchen a quick make over. Don’t forget the garden if you own a house. Refresh the mulch, weed the garden beds and consider adding some flowering plants for a splash of colour. Clean any external lighting and windows and check if the entertaining deck needs any repairs. Not only will your tenants love the clean-up it adds considerable appeal to your property.
Resolution 5 – I will be ready to act quickly
As a property investor if you are looking at expanding your portfolio in 2021 being financially prepared is key. Have you considered your budget and price range, have you done your research and identified where you’d like to buy? Buying a property is a big decision and you don’t want to feel rushed without thinking through your options, but indecision can keep you from what could potentially be a rewarding decision. Talk to your home loan provider and get pre-approval so you are ready to take advantage of the right opportunity if it comes along.
Resolution 6 – I will plan my budget
With the current low interest rates it can be easy to get comfortable in thinking that the extra bit of cash will be around if needed. But things change and interest rates will undoubtedly rise so it never hurts to have a bit of money saved up on the side to pay for unexpected costs. Additionally, it’s important that you have a clear view as to how much you are spending on your investment. Start by monitoring and documenting every expense over a month. This will give help you create an accurate budget and identify any expenses you can remove going forward.