3 cost drainers to avoid with your investment property

02 Jun 2020

Owning an investment property can be stressful, and this stress is more often than not, financial.

Ok, so there’s the usual culprits that contribute to ongoing costs that need to be managed and simply can’t be avoided… maintenance, council rates, strata fees (if applicable), property management fees and of course the dreaded mortgage repayments. But, with our many years in the industry, there’s one common cost drainer we see all too often. It can come out of nowhere and cause landlords a world of pain– a vacant property!

It’s pretty simple to see why… If you are renting your property out for $450 per week and the property remains vacant even for just one month, you’re out of pocket $1,800! Ouch!

At times, a tenant vacating is inevitable and market conditions certainly play a role in how quickly the property is leased once again. But there are 3 easy measures you can take to prevent long vacancy periods.
 
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Set a competitive rental rate from the get go
Firstly, make sure you set a realistic and competitive market rent to attract interest quickly. The majority of initial inquires will happen in the first week or two of the property hitting the market... miss the boat and you could see it sitting on the market for weeks. Setting the wrong rate is one of the biggest mistakes landlords make, leading to extended vacancy times.

Have a property manager involved early
Involving a good property manager from the very beginning, even before you have purchased your property can ensure a speedier lease. How? Being experts in their field, they have a world of knowledge to help you make a more informed decision when buying and setting up the property as a lucrative investment.

Happy tenants are long-term tenants
Sounds simple enough, right? But retaining good tenants is the simplest way to a stress-free investment property.
Owners should be proactive in property maintenance and ensure any issues a tenant raises are dealt with quickly. Fixing faults promptly, eg, leaky showers, broken appliances etc is at a minimum, but regular maintenance is also strongly encouraged. If the tenants sees property improvements from time to time, they are more likely to stay longer.
 

 
 

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