What are some traps landlords should look out for?

Now that we’re into a new year, the time is right to consider ways to maximise your decision to be a property investor.

If you’re considering a first (or next) investment property, be sure to avoid buying a property with high rental vacancy rates. If for example, some significant new developments are underway or completed, tenants might be spoiled for choice as the new apartments create a short-term oversupply situation. Property investing is a long-term proposition. However, try and avoid a vacant house or apartment even for a short period if possible.

Likewise, it’s important when buying an investment property that you consider the demographics of the area. For example, in a suburb or town dominated by a university, buying a small two-bedroom unit with tiny bedrooms will not attract the student market. Most students prefer to share accommodation arrangements for budgetary reasons.

Once you have purchased the right investment property, choosing the wrong property manager is the next trap to dodge. An experienced property manager such as Raine & Horne deals directly with your tenants, which saves you time and worry over marketing your rentals, collecting the weekly rent, handling maintenance and repair issues, responding to tenant issues, and renewing or even removing unruly tenants.

While a property manager can look after a range of matters for you, the savvy investors recognise they must be prepared to spend some money when repairs are required rather than allowing a broken fence, leaky toilet or faulty oven to cause serious problems. It’s also essential you listen to the advice of your property manager – otherwise, this is like flushing money down the drain.

At the same time, there is always a risk of being overgenerous to good tenants, and spending on additional items that will eat into your cash flow.  Avoid not having landlord insurance or insufficient cover.

If you feel you need some advice about landlord insurance, be sure to talk to your Raine & Horne property manager.

Why Raine & Horne Commercial?

Our full-service commercial real estate network can provide in-depth knowledge of local and regional property markets, with insight and understanding that comes from being a part of a long-established national and international property group. Committed to personalised service and achieving unsurpassed results, our clients continue to benefit from our network strength, which allows substantial cross-flow of international referral, advice and investment.

The Raine & Horne Commercial network is comprised of 100% owner-managed offices and includes numerous industry leaders and award winners. We employ agents who are empowered, encouraged to share and who maintain first rate communication to deliver the best possible outcome with every transaction. We pride ourselves on staying abreast of local and national trends and developments in the property industry, resulting in consistently cutting-edge services and holistic solutions for our clients.

Our industry experts embody and respect the family-oriented values synonymous with the Raine & Horne Commercial brand, allowing us to provide a complete range of professional services for all aspects of commercial, industrial, retail sales, leasing and specialist properties.