Best advice for rental owners
Owning a rental property can be a great investment, providing a solid income as well as strong capital growth. But there are also a range of things to consider when it comes to ensuring smooth and stress-free ownership.
Here’s some of our best advice for rental owners to help maximise your returns and manage your investment with ease.
Know your legal responsibilities
Owning an investment property comes with both rights and responsibilities and it’s a good idea to familiarise yourself with the relevant state or territory laws regarding your obligations as the owner.
If you are unsure, a good property manager is the perfect person to assist, but as a quick guide, the property must meet minimum housing standards, including being safe and secure, and you must honour the renter’s right to peace and privacy.
On the flipside, the renter is required to look after the property, notify you of any maintenance issues and pay the rent on time.
Be aware of tax implications
In general, income received from rental investments is considered taxable income and must be declared on your tax return, this includes the rent, any insurance payouts and payments received from the renter for repairs.
This income can be offset with common deductions including management costs, land tax, interest paid, general maintenance and adjusted depreciation.
Look after your renters
Finding good quality renters is critical. Your property manager will screen potential candidates and suggest the best options.
If you list your property for a fair and reasonable price you will be more likely to attract long-term renters, and once you have good renters, it’s worth keeping them.
To do so, make sure you respond promptly to maintenance requests and respect your renter’s right to privacy and quiet enjoyment of the property.
Look after the property
Routine inspections are a great way to keep on top of regular maintenance.
Your property manager will inspect the property periodically and provide a report.
If there are any issues, you can use tradespeople recommended by the property manager, or suggest your own preferred professional.
A trustworthy tradesperson or handyman can be a good asset when maintaining your investment property.
Make smart improvements
Often small improvements can make a big difference in terms of ease of maintenance, looking after your renters, and also ensuring your property commands a good rental price.
If you are upgrading any fixtures, fittings or appliances, opt for durable items. They might cost a little more but tend to last longer and improve the feel of the property.
This also applies to good quality appliances which will break down less often and have good warranty back up.
And don’t forget preventative measures and ongoing maintenance. For example, if your property is in a leafy environment, consider installing gutter guards, and trim large trees regularly to allow in extra light and minimise mould and pests.
