Tips for Landlords
You have worked hard to obtain your investment property and whilst much of the day-to-day management issues will be co-ordinated by Oxley’s Real Estate, there are a number of fundamental responsibilities which are imposed upon the owner/landlord. The following matters outline some of those rights and responsibilities:
Duty of Care:
Duty of care is phrase which is regularly used in reference to the ownership of an investment property. Duty of Care is a moral and legal obligation to protect the tenant and look after the investment property. Failure to carry out this obligation could result in serious consequences. The property must be kept in a clean, well-maintained condition that is safe for the tenant to live in.
Maintenance:
The Residential Tenancies Act clearly states that the landlord must maintain the property in ‘good’ repair. The tenancy laws have been designed to protect individual from injury and poor living standards. Our property management team is vigilant to this legal responsibility and will, from time to time, recommend improvements, maintenance or repairs to your property in order to protect you and your investment.
A well-maintained property will maximise the rent achievable, attract a quality tenant, reduce vacancy periods and improve the long-term capital asset value of the property. Our experienced team is keen to work with you to ensure that repairs, maintenance or improvements are rectified in a timely manner.
Tenant Do’s & Don’ts:
Although Oxley’s Real Estate now manages your investment property, there are some basics of what you can and can’t do while tenants are residing in your property. In that regard, we suggest:
- Don’t be afraid to have an annual look at your property and do so in company with one of our team. Keep a professional distance from your tenant and avoid personal interaction.
- Attend to repairs promptly.
- Don’t leave personal belongings at the property once the tenancy has commenced.
- Have a professional builder, electrician & pest controller inspect your property annually to identify any risk factors.
Insurance:
We strongly advise that you ensure that you are adequately insured in relation to the property both in relation to disasters ie fire etc or damage by tenants. Disaster can strike anywhere, anytime which has been highlighted in the news. The devastation of losing your property can be magnified a hundred fold if you do not have the correct insurance cover. There is also significant risk associated with underinsurance.
As managing agents we are very careful in our tenant selection process, we carry out regular inspections and have high communication standards with our tenants. However, as you can appreciate, unforeseen circumstances can occur in a tenancy, which can have an impact upon the payment of rent or damage to the property. This can happen at any time, even after years of trouble-free tenancy.
Building & Contents Insurance and Landlords Insurance are a tax deductible cost will protect your property and the investment alike.
Tenant Selection:
Choosing a tenant for your investment is not simplistic. In order to assist you in the decision making process, you can be assured that our office scrutinises the application and conducts reference checks including:
- Full completion of the application form.
- Verification of the tenant by obtaining photo identification.
- Follow up of real estate references in relation to past rental relationships.
- Follow up of employment references to verify employment details.
- Follow up of personal references to examine integrity of applicant.
- Assessment of the applicant’s ability to pay rent, lodge the bond and maintain the property based upon the references.
- The number of applicants and suitability of each.
- Rental history.
- Advice in relation to the Anti-Discrimination legislation which prohibits the landlord/agency from discriminating against an applicant on factors including: marital status, colour or race, sexuality, religion, children and a number of others.