According to CoreLogic, 57.3 percent of Australian wealth is held in housing, and unlike some countries the majority of rental housing is provided by the private sector, mostly regular small operators, sometimes referred to as mum and dad investors.
There are around 3.25 million investment properties across Australia, with 90 percent of investors owning one or two properties, and less than 1 percent of investors owning 6 or more. Investing in property can be easily achieved but growing a property portfolio of 3 or more requires an effective strategy.
When it comes to investing there is a lot to learn and for most investors we grow and evolve through our investment journey. At NQ Rentals, having developed our own investment portfolio, we understand and specialise in maximising returns and ensuring that your chosen investment property is achieving the goals that you desire.
MARKET LEADING RENT
Market conditions and demands shift considerably over a 12-month period. While you will likely have a rental figure in mind, there are many factors to consider, these can include
- time of year leases expire
- length of leases
- vacancy rates
- property presentation
- tenant trends
- comparative market assessments
RETAINING AND MAINTAINING
Being on top of maintenance is one of the best ways to support and maitain property value and respectful tenants.
A great tenant looks after your property as if it's their own. A great stable tenant has lots of advantages and can be the perfect partner in your investment journey. They will also have the income to support any movement in rents to ensure a fair market rent is achieved.
Vacancies, advertising, and relet costs can quickly erode any increase in rents. Conversely, new tenants have a greater understanding of the current market, and a property cleaned to a high standard between tenants can improve value.
Having the right Insurance in place takes the pressure out of stressful situations. There are some great insurance packages available for landlords that we personally use and recommend.
FINDING GREAT TENANTS
Great tenants can make the difference between high-performing and underperforming investments. Great tenants are contactable and responsive, pay rent on time, look after your property, and consequently minimise repairs and maintenance costs. Finding great tenants requires
- credit history checks
- proof of ID and income
- reference checks
- national database reviews
TRACKING FINANCIAL RECORDS
Utilising industry leading cloud based software systems provides detailed record-keeping and statements to ensure that you can maximise any deductions. It's imperative to keep track of,
- monthly and annual statements
- incoming and outgoing monies
- tax documentation
- organising depreciation schedules
- reciepts for payment of any property related expenses
Comprehensive entry, exit, and periodic inspections are critical to ensure that everyone's interests are protected. Detailed and up to date photos and online reports can give landlords a clear representation of how the property is being maintained. They're also relied upon for bond and damage claims if required.
Discussions about rental arrears can be difficult. It is essential to have effective accounting software to accurately track when rent is due and provide tenants with an accurate rental ledger. A strong rental arrears procedure can save valuable time when it comes to managing any tenants who find themselves unable to pay systematically.
Property managers are required by law to hold a current real estate license and be across any legislation. It's also critical to stay updated on any cahnges to tenant legislation, and laws relating to increasing rents, ending tenancies, pet applications, and minimum housing standards.