Top tips for landlords
Property can be a great investment – “safe as houses” some would say. We Aussies have had a love affair with bricks and mortar for generations. For many, investing in property, other than their family home, is an integral part of their wealth creation strategy.
But there’s a lot to consider before becoming a landlord – from choosing the right property and finance, to knowing your tax obligations and legal responsibilities.
It is critical you have access to the best advice to ensure your investment works hard for you.
At EBM RentCover, we offer more than landlord insurance, we offer excellent service and support to help you navigate the complex world of property investing.
Here are our five top tips to help you survive and thrive as a landlord.
1. Know your rights and obligations
Residential tenancy laws vary in each state so, before leasing your property, make sure you’re a full bottle on the rules that apply to:
- legally-binding tenancy agreements
- choosing a tenant
- the bond
- the rent
- utility costs
- landlord responsibilities
- tenant responsibilities
- inspection rights
- repairs and maintenance
- managing missed rent and arrears
- issuing notices and eviction procedures
Being a ‘bit fuzzy’ on your rights and obligations means you could fall foul of tenancy and other legislation – and breach the terms of your insurance cover too.
2. Hire a property manager
If you choose to manage your own investment property, and things slip through the cracks, you could find yourself in (legal) hot water. Putting the management of your rental into the hands of an experienced professional can save you time, hassle and money in the long run.
3. Use your head
Investing in property is a business decision, so make choices with your head, not your heart.
Know the demographics and profiles of renters in your area and, particularly when it comes to things like design and décor, make decisions that are practical and appealing to them.
4. Protect the property
Safeguard your property and finances with the right landlord insurance. No matter how savvy you’ve been, things can happen – accidents, misfortune, misunderstandings, the wrath of Mother Nature.
We’ve all heard horror stories about tenants leaving properties trashed or absconding without paying the rent, leaving the poor landlord to foot the bill. Not all landlord insurance policies are created equal; when looking for a policy make sure you’re covered for loss of rent as well as both accidental and malicious damage.
5. Protect yourself
When choosing a landlord insurance provider, check you are adequately covered for legal liability – it could save you a lot of financial heartache. If a tenant, guest or visitor to your property is hurt, or their property is lost or damaged, they could make a claim against you for compensation so it’s important to have liability cover.
By Sharon-Fox Slater, managing director, EBM RentCover
More from this writer:
-
‘See you in court’: Why landlords need legal expenses cover
-
How to submit a successful insurance claim during COVID-19
-
5 reasons landlords should hold onto their insurance policy
-
Weather watch: Winter-proofing rentals
-
Landlord insurance: What’s covered, what’s not
-
-
5 non-negotiables when it comes to landlord insurance