As a landlord, you may have purchased your investment property, and have a tenant and tenancy agreement in place, but what about continuing the ongoing maintenance and upkeep measures to ensure the investment performs at its maximum potential? It’s important to maintain the value of your asset to ensure it continues to grow for you.
Maintaining your investment property should be an essential part of your investment strategy, and there is some maintenance that is required by legislation, such as landlords responsibilities for smoke alarms. Watch this video as Joanne Danckwardt discusses the importance of looking after your investment property, and how you can manage it.
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The economic realities of maintaining residential investment properties require genuine commitment and should be properly managed, budgeted, and accounted for from the beginning.
Plan ahead
Being able to forecast various updates and costs is a beneficial skill when it comes to property investment planning. Consider where, when and how your cashflow will be coming in and realistically examine expenses related to holding housing investments, at various points in time. This will provide a realistic comprehension as to what type of investment you can afford and the best type of housing asset suited to your circumstances, helping you to ascertain what to look for when buying an investment property.
When planning for maintenance costs, consider the occasional upgrade. This will not only maintain the value of the property, but allow for the property to continue to attract tax depreciation benefits - talk with your accountant about more tax time tips.
What to plan for
Investing in a residential apartment building, such as units or townhouses, will usually see a body corporate in place, who will oversee the maintenance of the building and any communal spaces, such as car parks, laundries, and gardens. When you own an apartment in these buildings, you will be required to pay an annual (or quarterly) body corporate fee, and may be required to provide additional funds for capital works as necessary, for example roof repairs following storm damage. Body corporate fees, sometimes known as strata levies, can vary, and should be fairly reflective of the type of maintenance buffer investors should prepare for, relative to the size and type of dwelling owned.
Emergencies
If left unaccounted for, emergency repairs can quickly eat into any cashflow buffer or savings.
Consider what constitutes an ‘essential item’ in a rental property, according to legislation. Then calculate how much it would cost to replace these items, should the need arise. For example, heating and cooling systems, cooking appliances, plumbing or electrical infrastructure and hot water services. Have at least this amount of money accessible in a separate account. You should be aware of what insurance a landlord requires, and what you will and won't be covered for in an emergency. Emergency repairs are a part of rental compliance required to be adhered to as a landlord.
General repairs and maintenance
More regular repairs and maintenance items should also be factored into the budget and calculations for your property portfolio cashflow forecasting. Remember that your investment property is working for you every day, generating an income. As such, you want to make sure it remains productive and viable.
Consider how you can keep your investment presentable and inviting. First impressions count in real estate. You could you potentially attract and retain better tenants, and also have a better chance to maximise returns. This money you put in can come back to you with dividends.
Landlords should also ensure they know the difference between fair wear and tear and damage for the rental property, and be prepared to work with the tenant to resolve any maintenance concerns.
If you're ready to discover how you can rent out your property with confidence, download our free Step By Step Checklist to Renting Your Property with Confidence.
YES, DOWNLOAD MY CHECKLIST
If you feel you could benefit from our experience with property management, we’d love to hear from you. Simply reach out. We hope that has helped you today. If you have any questions, we’d love to talk to you. Our number is 0426 264 771 or 0455 147 755. We look forward to talking to you soon.
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In the ever-evolving world of property management, clients value certain qualities and services that distinguish outstanding property managers from the rest. Whether you're a landlord with multiple rental properties or an investor seeking to maximise returns on your investments, the objectives that are sought from the management of your property tends to be the same. Here is what some of our property management clients have shared are the top things they truly value when it comes to their investment property. 1. Excellent Communication One of the most consistent praises among clients is excellent communication from their property management team. Kris, for instance, highlighted that “great communication, prompt action on instructions and sound advice has afforded peace of mind”. It was a similar story for Patrick, who emphasised that everything needed to secure the best new tenants for his rental property was done. “Great communication throughout the whole process of changing tenants,” he said. Effective communication ensures that landlords are informed about every aspect of their property management, from tenant enquiries to maintenance updates, fostering trust and transparency in the landlord-property manager relationship. 2. Prompt Action and Responsiveness In the fast-paced world of property management, prompt action is invaluable. Kris appreciates the "prompt action on instructions," indicating that swift responses to queries and requests contribute significantly to client satisfaction. Andy , who has experience in the real estate market for more than 30 years and worked with a number of agencies in the area, echoed this sentiment. "My previous tenants, which Joanne recommended, were an absolute charm and left the property as good as when they entered," Andy said. "While they recently vacated, new tenants moved in the same week.” He said while the last tenants moved out due to downsizing, he praised the team for being “quick in managing the advertising campaign and very thorough with the selection process and recommendation”. 3. Sound Advice and Professionalism Another key theme that emerged from feedback from clients was how they valued property managers who offered sound advice backed by industry expertise, along with professionalism. Maggie described Joanne and the team as “streets ahead of any other agency I’ve had dealings with over many years in Sydney and Wollongong”. “Their commitment and personal touch are consistent and their professionalism always first class," Maggie said. "During our purchase period, ALL the staff were available for support and during a difficult market period they have sought a tenant for us and guided us through the process. "I look forward to a professional ongoing relationship.” This demonstrates the importance clients place on the professionalism and expertise of their property management team. 4. Personalised Service and Genuine Care Beyond professional expertise, clients value property managers who demonstrate genuine care and personalised service. And that goes for landlords and tenants, as expressed by Roger. "Regardless of my rental status, Joanne and her staff... were very respectful and made my experience trouble-free and quite enjoyable,” Roger said. He described the team as "extremely confident”, that he felt he was "always in safe hands during the process” and they “demonstrated a willingness to be of assistance and in an extremely professional manner”. “It was very pleasing to be find an agency that treated both landlord and tenant in such a respectful and efficient manner,” he said. This personal connection fosters a positive client experience and builds long-term relationships based on trust and mutual respect. What is it that you value? Is it also effective communication, prompt action, sound advice, and personalised service? By prioritising these qualities, property management teams can cultivate strong relationships with clients and deliver exceptional service that exceeds expectations. As evidenced by this glowing feedback, the right property management team can make all the difference in maximising the value and success of real estate investments. If you’re not a One Agency JD Property Agents client, but would like more information on our landlord services, contact us on 4285 7400 or via email. We are always happy to answer questions and offer advice, or offer a free rental property appraisal.
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