5 New Year’s resolutions for landlords
The advent of 2023 is the perfect time for landlords to take a break and reset their financial goals, according to this property management expert.
Raine & Horne head of property management Maria Milillo has recently outlined a number of ways that investors can add value to their portfolio — and better protect their investments for the year ahead.
Here are Ms Milillo’s five New Year’s resolutions for landlords:
- Protect yourself
“Apart from your home, an investment property is your most important asset,” the property management head reminded.
“So, like your home, you need to plan for unforeseen events.”
This could, unfortunately, include malicious or intentional property damage, theft, or defaulting by tenants on their rental payments.
“In all these cases, landlord insurance can cushion the financial hit,” Ms Milillo advised.
In saying that, not all protection policies are the same — and policies should be looked at closely.
- Take a trip
Visit your investment property in 2023 is the advice of the property management expert.
No matter how good your property manager is, she acknowledged that “it’s still good to check the property’s condition”.
Your property manager should be able to help you here — liaising with the tenant to find a suitable time.
“Once you gain access to the property, examine it for anything from frayed carpet to peeling paint and get onto the repairs pronto to ensure you have a happy tenant,” she said.
“Happy tenants are more likely to take care of your property.”
- Check the terms
Ms Milillo also reminded landlords to check the terms of their tenancy agreement.
Instructing landlords to “be sure that you have a fixed-term tenancy agreement”, she noted that if the agreement requires updating, feel free to look beyond a six- or 12-month agreement.
“If you want more surety of cash flow or wish to change the time of the year when an agreement ends, go for a longer lease if the tenant is happy to oblige,” she instructed.
- Schedule
The property management expert has stressed the importance of getting a depreciation schedule drawn up for the property.
- Do a health check
With eight consecutive rate rises in 2022, there’s never been a better time to ensure you are getting the most bang for your buck out of your mortgage.
If you have not recently conducted an investment property loan health check, January 2023 is the perfect time to do so!