Frequently Asked Questions About Property Investment
6 surprising things even seasoned landlords may not know!
No matter how long you‘ve been in the property investment game, there’s always something new to learn.
And over the years we’ve fielded so many different questions! Here, in our first FAQ instalment, we’ve answered 6 of the most common ones…
How do you set an ‘ideal’ rent amount? And what if I want more than my agent recommends?
A Property Manager can offer specific and tailored advice to help you decide on a rental amount that is fair and reasonable, yet still works to meet your investment goals.
Given their unique position in the market - they visit A LOT of homes in A LOT of suburbs - if you’re concerned about how much rent to charge, just ask them!
They’ll be able to give you relevant advice and weigh it up against similar properties in similar locations, and also have insider knowledge on less obvious things like how other rentals homes are being furnished and how modern or dated yours is in comparison.
They also have access into property market reports that show median rents being charged and can advise on what can be done to maximise your property’s value.
And what happens if you want more rent than your Property Manager suggests? Have them trial the rent you want, to see what interest it attracts. Just keep in mind - it may impact how long it takes to gain a tenant.
If the tenant has a pet, can I ask for a pet bond to be paid?
It’s a common dilemma for landlords everywhere - should I, or shouldn’t I, allow pets into my property?
And while there are arguments both for and against, it’s a question that often gets followed up by - if I were to allow pets, can I charge a ‘pet bond’?
While it may seem logical to do so, depending on where you live, a pet bond may or may not be legal.
Locally speaking, here in South Australia, pet bonds are a no-go. But even in WA - where it is legal to charge one - they still can’t be applied, for instance, to assistance dogs.
So what are your options?
Given tenants are often willing to pay a premium rental rate - and sign a longer lease - simply for allowing their furry (or feathered) friends to stay, the best way to cover your property is to take out Landlord’s Insurance.
This should cover any damage caused by an unruly pooch, feisty feline or petulant parrot - and give you the peace-of-mind to choose from a wider pool of tenants.
Who pays for water usage?
A surprisingly common question from both landlords and tenants, this is another one that varies state-to-state.
Here in South Australia, it’s pretty clear cut.
Where a tenancy began post-March 1st, 2014, a landlord must pay for sewerage, while the tenant pays for both water use and supply.
The only anomaly to this is where there’s a shared water meter. In that case, terms have to be written into the lease agreement that outlines a payment percentage based on the number of properties or tenants that share the meter.
It’s also worth noting that landlords can choose to not charge tenants water usage at all, or it can simply be ‘all inclusive’ in the rental fee.
What happens if a tenant wants the locks changed?
Legally, it isn’t a landlord’s responsibility to change locks between tenancies.
However, every tenant has the right to feel safe in their home.
So it’s understandable that they may worry about keys floating around in the hands of previous tenants.
Currently in South Australia, landlords must make sure that their property is ‘secure’, which means if a tenant makes a reasonable request - like having the locks changed on security grounds - it cannot be refused.
On the flip side, it’s a tenant’s responsibility to make sure they look after their keys - because they’ll need to pick up the cost of property access or replacement if they’re lost.
Who cleans the gutters?
Gutter cleaning - it’s a pain in the you-know-what. But who’s responsibility is it to clean them out - landlord or tenant?
During a tenancy, the onus falls on the landlord. Gutter cleaning is considered general maintenance, and forms part of what’s considered ‘regular upkeep’.
So it doesn’t become a problem, we always suggest having the gutters cleaned on your properties at least once a year, unless your property is located near trees that shed leaves all year round - then it may be required a little more often.
Don’t Property Managers Just Collect Rent?
Heck no!
The very best property managers are skilled, flexible multi-taskers that adeptly handle a raft of curveballs thrown at them daily (which is great, because you’re entrusting them with your most valuable asset!)
Here’s a snapshot of a typical Property Manager’s ‘To Do’ list:
✔ Marketing properties - putting together (and actioning) plans to ensure your home attracts the most suitable tenants faster, lowering your vacancy rate
✔ Finding & screening tenants - poring over applications to make sure you’ll have renters with an A+ rating (good tenants = less headaches!) - and dealing with evictions where necessary.
✔ Handling tenant requests - and complaints - so you don’t have to worry (or take constant calls)!
✔ Paperwork, paperwork (and more paperwork) - handle and compile a wide range of documentation, from contracts and financial statements to utility bills, deposits and bonds
✔ Inspections & Reports - scheduling regular in-person check-ups to make sure your property is being looked after properly, reporting back on anything that needs attention and actioning it.
✔ Repairs & Maintenance - arranging for skilled, licensed trades to fix any problems quickly and efficiently
✔ Staying on top of the legal stuff - to make sure your property is compliant with relevant property laws
✔ Keeping landlords updated on market trends and changes, plus offering advice on all the things they can do to maximise returns - like tax and portfolio management strategies
✔ And last but certainly not least - collecting rent! It’s important that rent hits a landlord’s account on time, every time. So if it doesn’t? Property Managers tackle the job of finding out why (and fixing it!)
So when it comes to your investment property, the most valuable thing you can do is hire an experienced property manager who will safely guide you through the property ownership minefield, ensure you’ll achieve the best returns possible and avoid the pitfalls of property investing.
While there’s always something new to learn, property investing is certainly an exciting journey - and one that can lead to incredible rewards!
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If you’ve got questions, we’re here to answer them!
If you’re just getting started, or looking for more valuable property investment tips, tricks and hints, check out these other handy articles on our blog:
× Renovating Your Investment Property?
× Is Investing In Property Still Worth It?
× Frequently Asked Questions About Property Investment (Part 2)
And for all the very best property sales or investing advice, why not connect with us - We Connect Property are your local property market specialists with over 21 years’ experience in buying, selling and managing property in southern Adelaide.
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Give us a call on 0403 799 983 today, or drop a line to sales@weconnectproperty.com.au - we can’t wait to chat!
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DISCLAIMER: All recommendations made by We Connect Property are general in nature and not to be relied upon as legal or financial advice. To ensure accuracy, we always strongly recommend seeking independent, professional advice tailored to your specific situation before making any investment or financial decisions.