Five questions to ask yourself when renting your investment

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If you’re a first time investor, or even if you’ve got an investment property portfolio, it’s always good to revisit some basics so you know you are getting the best out of your asset – what works for some properties, doesn’t necessarily work for others.

For instance, if the property is near a university, you may consider letting it partially furnished as students often don’t have much furniture. However, you probably wouldn’t want to let your property furnished if you’re looking to attract a family.

Here are a few questions to ask yourself when deciding on how to let your property:

Should I use a property manager?

This is probably the first question you should ask yourself. Yes, it will cost you money, but this is tax deductible. Using a property manager will save you a lot of stress and hassle – do you really want to be taking calls at 2am if things go wrong? Or trying to find tenants while chasing the previous ones who owe you money? A property manager will deal with issues like that and will find you good tenants so you have time to put your energies into other things.

Furnished vs unfurnished?

This really depends on the size and location, and what tenants you are hoping to attract. As highlighted previously, families usually have their own furniture, so will be happy to rent a property with the minimum of furnishings.

Will I allow pets?

You do need to think about the impact a pet may have on the property when it comes to wear and tear; even well behaved animals inadvertently scratch floorboards and leave hairs in the carpet. Many strata corporations make the decision for you by not allowing pets anyway.

One thing to think about though, because so many landlords don’t accept pets, there is often a demand for rental properties that do allow them. Furthermore, many pet-owners are prepared to pay higher rent to compensate for the additional wear and tear their pet may cause.

Where are the warranties and manuals?

While you may know the intricacies of your reverse cycle air conditioning unit, others won’t. Make sure you give your tenant (and agent) all the manuals for any appliances such as the air con, stove, and dishwasher; if tenants have the instructions, there is no excuse for any damage caused by using the item incorrectly.

Should I renovate/decorate?

If the property does need redecorating or renovating, you should focus on any additions being practical and durable. For instance, while a cream coloured carpet lightens a room, a charcoal coloured one will show the wear and tear less. Sometimes, a thorough professional clean throughout is sufficient to make a place presentable and ready to let for the next tenant.

Our knowledgeable and experienced team can give you more tips and help to ensure you get the best out of your investment property.

We are one of Newcastle’s longest established real estate offices and have helped hundreds of property investors realise their dreams over the past 40 years. And we’d love to help you, so give us a call on 02 4954 9777, send us an email to mail@newcastlepropertymanagement.com.au  or pop into our Cardiff office for a chat.

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