Getting an investment property in Hobart is a great idea. But much of the yield you will realize on your investment will depend on what you do with the property during your time as its owner.
The smart way to cover or supplement home loan payments, or just to get regular income from your investment, would be to get tenants – and the more they are willing to pay and the more reliable they are, the better. But how do you go about attracting the best class of tenant: people who will look after your property and pay their rent reliably? As property managers in Hobart, we present our tips on finding the very best tenants.
Improve your property – Within limits
It may be tempting to go all-out with renovations and home improvements, but this might not be the most profitable approach. Understanding the local market and how much people are willing to pay in extra rent for additional features is a good starting point. For example, a fresh lick of paint will already make your property look well-maintained – and it doesn’t cost much, but switching to the costliest ceramic tiles on your veranda might not motivate tenants to pay higher rents.
A clean, functional, well-maintained house is usually enough to attract quality tenants, and if you want to improve anything that isn’t actually broken, let it be the kitchen and bathroom. These two areas of the home are the ones that mean the most to tenants, and just about any real estate agent or property manager will confirm this.
Get the marketing right
Just advertising in local classified listings doesn’t market your home to the best advantage. Yes, you do want a listing, but you should also target premium publications. Here, you will want to see professional photographs and advertising copy that highlights the features and benefits tenants can expect when they rent your investment property in Hobart.
Viewings are part of your marketing drive. Be ready to accommodate prospective tenants’ schedules and be sure that they will find the property looking as good as it did in the photographs.
The final consideration is price. If you rent for under market rates, the most desirable tenants might worry that there’s something you’re not telling them. “What’s wrong with it?” is a question they might not ask, but it will be on their minds. Price your rental too high, on the other hand, and prospective tenants will simply look for and take a better deal.
The background check
Even the best houses can attract rental applicants you don’t want as your tenants. Often, you won’t immediately see that from an application. Checking that all the credentials are in order is absolutely vital.
That means confirming the identity of anybody that has been used as a rental reference. People who can’t get a good reference might ask a friend or family member to act as a referee – and that could cover up information that would ordinarily make you send a prospective tenant on his or her way.
You’ll also want to follow up financial information. A credit check and a look through bank statements will help you to see whether the applicant can afford the rent and has a steady enough income to pay it reliably.
Keep good tenants – it’s easier and cheaper than finding new ones
At Baxton Property Management, we recognize the value of a good, settled tenant. If you’re trying to go it alone as landlord, you will have a lot of work to do to keep the good tenants you went to so much effort to find. Your duties are laid out in the lease – and when it’s time to take action on these, it’s imperative that you should do so quickly and with the least possible inconvenience to your tenants.
Be sure to have a list of tradespeople like electricians and plumbers on call, and check out their rates early on so that you don’t end up waiting days to get quotes in and evaluate them. Discuss your responsibilities as a landlord with them and find out how quickly they can respond when the need arises. Make sure that your tenant is comfortable discussing any concerns with you. It would be a shame to lose a good tenant over a small issue you might have overlooked.
Or simply choose a property management company in Hobart to do it all for you
Being a private landlord does not mean that you earn passive income. You will work hard to get and keep the best tenants in Hobart. There are many pitfalls for the unwary and the inexperienced, and we hope that this blog post will have alerted you to some of them.
However, we are confident you will realize value for money through our property management service. Benefit from our experience and let us do the legwork. You really can earn passive income as a property owner, and your investment in property management services will reap tangible rewards as well as peace of mind.
Written and syndicated by
– Baxton Media.
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