How we can help our Landlords avoid Mistakes

What are the top 10 mistakes Landlords make?

Top 10 mistakes landlords makeWe will strive at all times to give you a quality of service which exceeds your expectations.

The following information has been prepared to help landlords considering our service with making one of the most difficult decisions you will have to make regarding your rental property.

Who to Trust with the Management of Your Property.

We hope you find this information enlightening and invite you to contact us with any questions you may have about the management of your property and the services we provide.

 

Mistake 1
Signing up with multiple Agents

Landlords think if they sign with multiple agents and whoever gets the tenant the quickest will be the best alternative.

Not only does this mean tenants have agents competing against each other but they could end up renting the property for a cheaper rate as some agents are only after the fees and don’t care for what price it rents for or what sort of tenant they get.

Our mission is to not only get you the highest price but also the best tenant possible. We would rather you wait to secure a good tenant rather than put in a tenant who will be a problem later on, even if it means we have to wait for our commission because whilst your property is not rented out we are not earning money either. But to save our time and effort and get the right
tenant we would ensure all steps are taken so your investment is as easy as possible.

We are that confident of our service that we offer this guarantee.

Mistake 2
Choosing the wrong agent

Many landlords will sign with an agent that offers cheaper fees or do not have a good understanding of what the services offered are.

We like to ensure our clients know what they are getting for their money as there are no hidden costs.

BE AWARE if an agent is cutting fees they are making it up somewhere else or they are cutting corners and you could pay the price.

Ensure your agent is experienced and knows what they are doing as many property managers do not stay for long at most offices.

Know that when you’re dealing with the owners of the business at First National Basso we’ve a vested interest having been in the industry for over 28 years.

Mistake 3
Open Inspections

Many agents book viewing times and hope tenants will turn up and one will be suitable. At First National Basso we take the details of all those inspecting the property before viewing. This not only ensures that the prospective tenants that view the property are vetted, it also ensures added security as there details have been documented

You can only rent to 1 tenant so ensure it is the right one.

Mistake 4
Cheaper Fees

An agent who discounts their fees obviously does not offer the service that you as a Landlord deserve.

There is a tremendous amount of work involved if the job is done correctly.

The wrong agent can do tremendous damage to the value of your home. Some agents not only get lower prices their lack of competence can cause your home to wear more than necessary.

We charge a responsible fee because we offer a professional service. If you don’t negotiate your fees with your doctor why would you with your professional agent.

Remember if you pay peanuts you will get monkeys.

 

Mistake 5
Trust agent

If you don’t trust your agent then don’t hire them.

Before you choose an agent ask lots of questions, make sure they have a good reputation and insist on a guarantee.

Make sure you feel comfortable leaving your most valuable asset in your agent hands.
Make sure you have a guarantee of the service and you know what they are offering upfront.

Mistake 6
Managing themselves

Private Landlords think they have a different set of rules to agents, they DO NOT. In fact the Residential Tenancies is very hard on private landlords because most don’t know the laws and sometimes think they can make the rules up as they go along.

Unless you have a very good understanding of the Residential Tenancies Act you could be making the biggest Mistake in your life.

The law is there for a reason and a good agent knows where and when to apply pressure and what advise to offer Landlords. The rules are set down for everyone to follow and if you do not follow to the letter of the law you could end up out of pocket.

A lot of the bad stories on TV are normally interstate or are private Landlords who do not follow the guidelines.

Mistake 7
Presentation

The presentation of your property can have a big impact on the sort of tenant it will attract.

A good tenant wants a nice home and will pay extra money to live in a property that is to their standards.

A property that is not well presented will attract tenants who think that if they Landlord cannot be bothered then neither will they.

Attracting a good tenant means higher rent and less problems and hassles.

Make sure your property is clean and tidy and carpets are cleaned and gardens neat and low maintenance.

Mistake 8
Not maintaining property

Most landlords think because it is a rental property they don’t have to worry about maintenance or the tenant can do it.

It is the responsibility of the Landlords to do on-going maintenance and the Tribunal can reduce the rent or order you to do the maintenance.

Try to fix small problems before they become big problems. Use qualified tradespeople who can offer the right advise.

We do regular quarterly inspections and report the on-going condition of your property and in between tenants we may recommend some repairs and maintenance to do whilst vacant.

Mistake 9
Tax Agents

To make your claims as effective as possible ensure that you claim as much as possible use a qualified and registered tax agent.

Do not rely on advice from anyone other that a qualified Tax agent. Your bank manager or your agent or anyone else should not be giving you any advice as the legislation changes unless they are not qualified.

Mistake 10
Manage money correctly

Things can go wrong so make sure you make allowances if you are without income.

Most landlords rely heavily on the rental income but ideally you should have reserve funds to fall back on. If your hot water service goes or a major repair is required,  you need to have these funds at hand, or should your tenant get in arrears you need to cover your mortgage as any additional fees the bank charge cannot be charged to the tenants.

Make sure you have a backup plan and also Landlord insurance to cover if something goes wrong as a 4 -6 week bond does not go far.

Choosing the right agent who keeps on top of problems can make a significant difference.

If you would like further advice or are considering buying or renting a property on the Mornington Peninsula, and want to know what has recently sold so you can get an idea of where the market is, you can download our FREE report HERE.

You can also review our current listings
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Paul Basso

Author Paul Basso

Established in 2000, First National Basso is a business based on transparency, honesty, personal service and trust. With a commitment to innovation, First National Basso has continually evolved and grown to become one of the longest running and most trusted real estate teams on the Mornington Peninsula.

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