Having an investment property can be smart move financially – property generally increases in value over the time and you can benefit from a regular rental income. However, you need to be smart about things if you want to make the most of your investment. From forgetting about landlord insurance to choosing dodgy tenants, it’s easy for landlords to make mistakes which could cost a lot of money in the long run. Let’s look at some of those mistakes so you can avoid them in the future!
Not screening tenants properly
Even if certain tenants have given you a great first impression, you need to make sure you do the right background checks to back up your decision. This process can save you a lot of pain in the long run so ask for references from employers and from previous property managers. If a potential tenant has had numerous addresses in the past year, ask them why and try to speak directly with the last property manager to get more information.
Not maintaining the property
A common mistake that landlords make is failing to put enough effort into maintaining the property. Even if you only purchased the property for land value, you need to remember that you want to attract good quality tenants and the best way to do this is have a property which presents well. If you give the property a coat of paint, install new carpets and generally keep it looking good, you’ll likely be able to achieve higher rent rate.
Not increasing rent over time
When you initially settle on a rent price, don’t just set and forget. It’s normal for rent to increase over time so keep an eye on what the rest of the market is doing and adjust your rental price as necessary. Reviewing your rent prices on a regular basis is preferable because it means you can increase your rent in small increments – your tenants won’t appreciate a sudden, massive increase in price!
Not having landlord insurance
It’s essential that you have landlord insurance in place to protect your investment. Even if you have the best tenants in the world, things can go wrong and you need to make sure you’re protected. From theft and vandalism to rent default and accidental damage, your landlord insurance covers you for a range of different scenarios which could see you seriously out of pocket if you don’t have the right cover.
GSK Insurance Brokers will work with you to find landlord insurance Australia which protects your investment and gives you the ultimate peace of mind. We understand the unique set of risks that you face as a landlord and will ensure that your risks are covered with a comprehensive insurance package. Let us protect you today!
If you’re looking for the best landlord insurance for your situation, contact the team at GSK Insurance Brokers today on (08) 9478 1933.