Tips & Solutions

Consider these 3 key things before becoming a landlord

If you are weighing up diversifying your investment portfolio by investing in real estate, it’s important to be aware of certain factors that will impact your journey as a landlord before you jump into the property investment pool.

It’s not as simple as simply buying a property, finding a tenant, and then sitting back to relax while the rent covers the mortgage. Whilst you may find an outstanding property that needs no repairs and offers an excellent yield meaning minimal future costs, the reality can be far different.

1. Work out your investment strategy

A financial advisor who understands your circumstance, future plans and current affordability for purchasing an investment property will help you plan out your strategy. They’ll also provide you with a budget that aligns with your strategy, is easy for you to manage, and may even make recommendations on suitable locations for investment that fits what you are after.

Where you purchase plays a key factor in the price that you pay for the property and its potential annual yield. We highly recommend you do your research into specific areas and their local communities. You should also speak with agents before you buy about what they believe the rental return may be so that you determine whether the property will be positively or negatively geared.

Be aware that rents will increase in line with demand and not necessarily when interest rates increase. This may impact your affordability.

2. Make allowances for ongoing costs

When you invest in a property, the aim is to have it tenanted as quickly and for as long as possible. With this comes usual wear and tear with ongoing costs to consider, from something as simple as a leaking tap or appliance repairs to extensive roof repairs, fencing, or a burst hot water system.

As a landlord, you’re responsible for all maintenance and repairs, so having a financial buffer to cater for these things is a smart move.

Items like paint, carpet, kitchens, bathrooms and appliances also have a life span, so a savings buffer to plan for the future replacement of these in the future will save you any stress of finding the finances if it’s already planned for.

3. Work with a reputable property manager

A great property manager who will treat your investment as if it’s their own will be one of the best decisions that you could ever make as a landlord.

They will be well-versed in the legislation requirements to ensure you’re covered for unforeseen events, and they’ll be able to provide professional recommendations and advice on what needs to be done to maximise your investment.

Don’t underestimate the value you receive for the fees you pay. A switched-on property manager will find, screen and help you select great tenants and will work through any resolutions should any issues or concerns arise. They’ll also work with trades on your behalf to find competitive prices when it comes to repairs and maintenance and ensure the job is completed to a high standard. It’s a small price to pay for peace of mind.

Great property managers can also keep you updated on the current rental market and advise if the rent should be increased depending on market conditions and the current tenants in the property, working with you to find the best solution.

Need advice?

We can help with all those things that you may not already know. You don’t have to be an expert in investing, you just need to know who to call.

Jaime is a seasoned Senior Property Manager and Director with over two decades of expertise. She excels in negotiation, delivering impressive outcomes for her clients. Her focus lies in Sydney’s East and Inner West, with a profound understanding of their distinct features, which she has acquired throughout her career.

She is a top-notch professional known for her proactive approach, attention to detail, and excellent communication and organizational skills. Her performance-driven mentality and efficient yet calm demeanour result in exceptional service for both landlords and tenants.

Book your one-on-one, obligation-free consultation with Jaime now. Call her on 0488 600 168 or email jaime@vogueproperty.com.au .

Share