Tips for landlords
If property investment is high on your goals list, there are some key things you can do as a landlord to ensure you achieve the success you want with your property portfolio. Here are some tips for landlords looking to manage their investments well – have a listen to the episode of my millennial property where John and Emily dive into this:
You need a property manager + ensure they’re working effectively
Focus on what you’re good at – let someone else apply their expertise and skill to manage your property so you have the best shot at ongoing property management success. Having a property manager involved reduces a lot of time and effort required by you – it’s well worth the investment within your overall property portfolio management.
Ensure you find the right property manager who will do their job credibly. Establish early what you want them to do in the role. Discuss things like getting them to pay property related bills on your behalf, routine inspections, maintenance, repairs, communication, paperwork and administration.
Manage your cash flow + have cash buffers in place
You need a money management system in place for your properties! Plain and simple. Without it, you won’t have money available for expenses relating to the property, and you won’t be building up some savings to make necessary upgrades. Likewise, managing your property with a slim cash buffer may have been feasible in the past, but times have changed, and cash buffers have become a necessity. To deal with inflation spikes, sudden maintenance needs, and unexpected tenant departures, you need a cash buffer. There’s no magic number as to how much should be in your emergency fund but if you’re a smart property investor you’ll know how much it costs for you to keep your properties! Be prepared by storing up several months' worth of costs. The more the merrier! Make sure you have a safety net to manage your costs so you don’t have to sell your property because of tight cash flow.
Take ownership
If you have a bad tenant, that comes down to having a bad property manager, who is chosen by … YOU. Do not outsource responsibility. Get on top of things and ensure you get the right property manager, who will attract the right tenants. If it’s not working with a property manager then look into other options and screen them well. The property manager might be taking responsibility for the day-to-day jobs, but the decision on who that is comes from you as the owner. You set the tone and culture from the top.
Reward your tenant
The tenant pays a large portion of the running costs of your property, so it works in your favour to keep them in your property rather than start again with a new tenant. Encourage good tenants to stay – in the long run that will build a good relationship with them and benefits you as the property owner. You might look at simple things like sending them a Christmas gift each year, or address things like heating or cooling in the property. Reward them for being great tenants – treat them with respect – and your property will be treated with respect as well.
Stay involved
You may not be managing the everyday practicalities of your property, but you’ll do yourself a service by staying in the loop with your property manager. You’ll be informed to make decisions that benefit the tenant and ultimately the ongoing success of the property. Make the most of your investment by being informed and engaged.
