It is common for some landlords to manage their own rental property. We respect that some landlords do like to self manage, however we do also come across mistakes that these landlords commonly make. In the next 5 weeks, we will help you to identify some of the most common mistakes, to assist you to be a better and more effective landlord.
Tenant Selection- Unfortunately many landlords rent to tenants that have not been thoroughly checked regarding their previous rental history, employment or have not even conducted a tenant default internet database check. This commonly results in high rates of tenancy failure leaving landlords angry and disillusioned regarding property renting.
Future tenant performance mostly reflects on their previous conduct, therefore comprehensive checking is essential. Ensure you make quality time to complete this vitally important process.
Termite Inspections- Many landlords do not annually have their property inspected for termite activity and possible termite damage. Termites can cause very serious damage to a property in a very short space of time, and signs of damage may only be noticeable after a considerable amount of damage has already occurred. Have your property annually inspected by a qualified and reputable pest control company to minimise the chance of termite infestation and resulting damage.
IMPORTANT! Termite damage is not insurable under your building insurance policy so it pays to have your property regularly checked.
Landlord Insurance- Some landlords who have insurance for the rental property building believe that they are also covered for rent loss if a tenant defaults, as well as malicious and intentional tenant damage. However what they do not realise is that they must also take out a separate landlord insurance should they wish to be covered for this type of loss and damage. Contact your insurer to ensure that your rental property is adequately insured.
Allowing for ‘Reasonable’ Wear and Tear- When a property is rented laws automatically apply to that landlord and tenant relationship.
Many landlords do not realise that they must allow for ‘reasonable wear and tear’. This means they must allow for a few bumps, marks and scratches to the property and everything supplied with it. The amount of wear and tear allowable depends also on the amount of time they have been in residence at the property, also taking into account the age of any affected items. Having the right expectations for reasonable wear and tear reduces the chance of disappointment and possible conflict.
Disrupting the Peace, Comfort and Privacy of Your Tenant- Some owners who rent out their property believe that just because they are renting it out, they believe they can access the property any time they like! Disturbing the tenant unnecessarily and being a nuisance, loitering around the property disrespects the tenant’s right to enjoy your rental property and can result in penalties and even compensation being paid out to your tenant. A landlord who owns the property does have right to ownership, however the tenant has the right to residence and to occupy the property. Giving the tenant ‘their space’ is all part of a healthy and respectful landlord and tenant relationship.
Ray White Bunbury Property Management