So You’ve Bought An Investment Property.. Now What?

28/07/2020

Investing in property is a great way to generate a return and has two types of potential returns. The first being from rent paid by tenants and the second is the property increasing in value, called capital gain. Rentals can provide regular income while maximizing capital through leverage. Rent should rise over time whilst debt decreases.

First things first, get a pre-purchase rental assessment done before investing. For a small fee you can get the opinion of an expert who will point out the strengths and weaknesses of your investment. This will determine if the property you want to purchase will do well in the rental market and why.

The thought has probably crossed your mind to self manage. Cash flow properties can be hard to come by nowadays so saving money on management probably seems reasonable. However, property managers can be an essential part of helping you generate return. They can educate you on ways to improve the property in order to achieve more rent or problems to steer clear of. Property management is a tax-deductible expense therefore, you could save on income tax by hiring a property manager all while utilizing their expert knowledge in order to generate more return. Property management is a great way to enjoy the benefits of owning a rental without the stress and worry.

Purchasing your first or even your fourth investment property may seem like a great idea. However, always ensure you have done your research and had experts look into it for you before committing. Rentals can be costly but they can also be a great source of return.

Inside a T And T Property Management Inspection Report

21/07/2020
A sample routine and full inspection report

Inspections are a very important part of our job and when owning an investment property. For owners, these are usually required for insurance purposes, at least every three months.

Above is a snippet of what our routine and full inspection reports can look like. There are a number of features for each room in the property, all of which have a status to represent their condition. The comments section is where we describe any damage or additional information about the feature. Such as the brand of a chattel or a dent in the wall etc. Along with the written section of the inspection report we take photos of each room and closeups of any damage. We aim to take at least 10 pictures per room to ensure the owner has a full scope of the current condition of the property.

Routine inspections are a good way to monitor how the property is being maintained and to get on top of any issues before they become worse. Inspections also allow tenants to notify us of any wear and tear that needs rectified before it worsens.

Full inspections are done at the beginning and end of a tenancy. These are more thorough and in depth. They will note any existing or new damage or wear and tear to the property. The move in inspection report is used as a reference for the exit inspection to determine if any damage or wear and tear was existing or happened during the tenancy.

If you are a current owner or tenant or an owner looking into our services and have any questions regarding our inspections, please don’t hesitate to get in touch, we’d be happy to help!

How To Get The Most Out Of Your Rental Property

14/07/2020

There are a number of ways you can maximize profit from your investment property. Sometimes this involves spending money to make money. Below are some suggestions that we believe will add value to your property and in turn achieve higher rent.

  • Don’t initially set rent too low- rent can always be lowered but it can’t be increased for at least 6 months after signing up a new tenancy. Aim high initially and if there is little interest then there is the option to reduce the rent.
  • Improve the appearance of the property- the way your property looks cosmetically will play a big role in tenanting and achieving top rent. A fresh coat of paint, new carpet and new kitchen or bathroom are popular features for prospective tenants. Modern, renovated properties always tenant faster than dated homes.
  • Good quality advertising- good quality advertising is essential in the tenanting process. Clearer pictures help to show prospective tenants exactly what the condition of the property is. Angles and lighting are also very important in making rooms appear larger and brighter.
  • Make sure the house is appealing for viewings– if a property is dirty or cluttered it is hard for prospective tenants to imagine it otherwise. A clean and organised home is always more appealing for viewings.
  • Sell the property not just show– during viewings make sure to boast the property and sell all of it’s best features. Features that aren’t noticeable to viewers such as how warm the property is or how sunny the rooms are.
  • Screen tenants– tenanting houses with suitable tenants is important when it comes to generating return. Tenants that pay rent on time, maintain the property to a reasonable standard and cause minimal to no damage and have done so in the past are key. It is crucial to screen tenants and do the appropriate checks to ensure your investment is being let to reliable and trustworthy people.
  • Take advantage of rent increases at the end of tenancies and every 6 months- market rent is always changing therefore, staying on top of these changes is a good way to get the most out of your rental. When a new tenancy begins or every 90 days the rent for rentals can be evaluated and increased.
  • Allow pets– allowing pets may be a daunting thought, but for rentals these properties usually generate the most interest. Animals can also be reference checked to ensure they will cause no damage to the property.