Landlord 101

Real estate business often sell their rent rolls. If this happens to you, the first time you will know about it is when you receive a letter from your new agency. It is perfectly legal and acceptable, and the same terms and conditions apply to your new agent as to the old. Hold them to it.
Landlord 101: Written by Andrew Trim

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When buying from a ‘property expert’ always get an independent valuation – don’t trust theirs.
Landlord 101: Written by Andrew Trim

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When hiring an agent, ask for the staff to property ratio. A ratio much over 80 properties per staff member indicates the agency is understaffed, regardless of technological Improvements. Understaffing leads to poor service and financial loss.
Landlord 101: Written by Andrew Trim

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Before hiring an agent, speak to several of their current landlords. Pick them yourself randomly from the agents client list.
Landlord 101: Written by Andrew Trim

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Have your gutters cleaned annually.
Landlord 101: Written by Andrew Trim

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Pets should be kept outside. Animal smells within a house are difficult to remove.
Landlord 101: Written by Andrew Trim

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Possibly the worst way to choose an agent is buy giving it to multiple agents and promising management to the first who finds a tenant. This encourages the agent to overlook potential problems with tenants to win the business. Disaster looms.
Landlord 101: Written by Andrew Trim

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Remember people judge properties the same as they judge people. First impressions count.
Landlord 101: Written by Andrew Trim

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Don’t pay extra to your agent for financial year statement.
Landlord 101: Written by Andrew Trim

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Negative gearing – careful, there’s a clue in the name.
Landlord 101: Written by Andrew Trim

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Remember the underestimate/overestimate theory. Always underestimate your income and overestimate your outgoings. Instead of the bill shock, you’ll probably get a pleasant surprise when the accounts are done.
Landlord 101: Written by Andrew Trim

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Check your landlord protection insurance includes accidental damage – not just malicious damage.
Landlord 101: Written by Andrew Trim

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If your property is not renting, reduce the rent by $10 a week. Remember, one vacant week at $400 takes 40 weeks at $390 to make up the loss. A $10 reduction is advertised rent can make a huge difference to potential tenants.
Landlord 101: Written by Andrew Trim

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Trust is imperative with your property manager. Do you instinctively trust yours to do the right thing?
Landlord 101: Written by Andrew Trim

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Homes are difficult to sell with bad tenants in place. If possible, wait, move the tenant on and then spend a small amount and some elbow grease cleaning up. It will help your sale greatly.
Landlord 101: Written by Andrew Trim

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Over the long term, its nice to have an investment in bricks and mortar.
Landlord 101: Written by Andrew Trim

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Be careful when taking advice from financial planners. They often have products to sell and receive trailing commissions.
Landlord 101: Written by Andrew Trim

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If your receive a letter advising a new agency is now managing your property, chances are they bought the management agreement from your existing agent. Its ok to keep them on, just insist they meet you in person.
Landlord 101: Written by Andrew Trim

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Before purchasing an investment property, get good accounting advice regarding ownership structures. It can be expensive to change.
Landlord 101: Written by Andrew Trim

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Noel Whittaker says, “the golden rule is that you always invest on the strength of the investment alone – any tax benefits that go with it should be regarded as the icing on the cake.”
Landlord 101: Written by Andrew Trim

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Remember, the agent works for you, the owner. They should always represent your best interests. After all, you’re the one playing them.
Landlord 101: Written by Andrew Trim

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If you select the wrong agent, you may not know it for years. Poor agents don’t reveal their true colours until a poor tenant tests them.
Landlord 101: Written by Andrew Trim

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Tenants get lots of free advice and information. Make sure you also get good advice and information from the agent you are paying.
Landlord 101: Written by Andrew Trim

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Got a good tenant? Then take it easy on the rent increases. Long-run returns are far better with stable, long-term tenants looking after your property.
Landlord 101: Written by Andrew Trim

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If you are selling with a tenant in place, offer them compensation to keep the property neat and tidy and to ensure they allow easy access. Maybe a reduced rent?
Landlord 101: Written by Andrew Trim

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Don’t sign a management agreement with an agency that has a termination period of longer than 30 days.
Landlord 101: Written by Andrew Trim

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Make sure the agent puts up a sign at the property to market for tenants. It is a silent salesperson, on duty 24 hours a day. Neighbours may know of someone. Many prospective tenants still drive around the area.
Landlord 101: Written by Andrew Trim

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Have a tax depreciation schedule done. This often makes a significant difference to your tax obligations at the end of the year.
Landlord 101: Written by Andrew Trim

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Get a building inspection on every property you purchase. Look for maintenance issues and structural defects.
Landlord 101: Written by Andrew Trim

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Pest inspections are essential on every property you buy. If a property has termites, its not the end of the world. Many areas have active termite populations. Termites can usually be killed off and repairs done at an affordable price. Put a barrier treatment in place, and you will have the safest house on the street. Negotiate with the current owner to help.
Landlord 101: Written by Andrew Trim

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After buying an investment property, don’t automatically give management to the agent you buy from. Check their credentials thoroughly. If in doubt, shop around.
Landlord 101: Written by Andrew Trim

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Understand why you are buying an investment property: for capital growth, return, or development.
Landlord 101: Written by Andrew Trim

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Buying an investment property for capital growth? Its more like a speculation than an investment. Be careful.
Landlord 101: Written by Andrew Trim

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Don’t be afraid to offer full price for a property if the numbers stack up. If the market is moving quickly, wanting to be the best negotiator may cost you the property.
Landlord 101: Written by Andrew Trim

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Change agents if your property manager doesn’t return calls.
Landlord 101: Written by Andrew Trim

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If you use a financial advisor when investing in property, ask how many properties they own. This tells you if they are a theorist or a realist.
Landlord 101: Written by Andrew Trim

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Ask these questions before employing an agent: ‘what is the average tenure of your current property managers?’ ‘when was the last time a property manager left your company?’ ‘why?’ stability in a property management is a good indicator of the quality of that business.
Landlord 101: Written by Andrew Trim

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When employing an agent to manage a property, do your best to meet them in person.
Landlord 101: Written by Andrew Trim

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Ask your agent to check out the car a potential tenant drives. It doesn’t have to be expensive, just well maintained.
Landlord 101: Written by Andrew Trim

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Bad tenants cost landlords thousands of dollars in missing rent and repairs every day. Select a tenant with care.
Landlord 101: Written by Andrew Trim

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Never buy an investment property based on current government legislation. Governments change and so do the rules. Buy an investment property because it’s the right deal for you.
Landlord 101: Written by Andrew Trim

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Don’t spend money advertising for a tenant in the newspaper. The internet will do the job.
Landlord 101: Written by Andrew Trim

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As Noel Whittaker says, ‘buy in gloom, sell in boom’.
Landlord 101: Written by Andrew Trim

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When selling an investment property, remember, it cant think. The property doesn’t know what you paid or what you need. It is worth market value. Market value is simply the price where there are buyers for the property.
Landlord 101: Written by Andrew Trim

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A cheap agent is often a poor agent. Chances are the cheap agency is understaffed. Even with modern technology, understaffed agencies provide poor service to both landlords and tenants.
Landlord 101: Written by Andrew Trim

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Before hiring an agent, confirm you wont be held to the management agreement if they cant rent the property. Simple rule – no tenant, no notice required.
Landlord 101: Written by Andrew Trim

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There are lots of property management agencies, just not many good ones.
Landlord 101: Written by Andrew Trim

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What’s the difference between a maintenance expense and a capital expense? Maintenance expenses can be immediately claimed against income. Capital expenses may be depreciated over time.
Landlord 101: Written by Andrew Trim

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If you discover your property manager has lied to you, terminate their services immediately.
Landlord 101: Written by Andrew Trim

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Check your monthly statement carefully. Ask your agent for clarification if needed.
Landlord 101: Written by Andrew Trim

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Investments can look attractive with a high gross return. Its best to check that the numbers work on the net return also.
Landlord 101: Written by Andrew Trim

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Make the decision WHEN you want to sell an investment property. Don’t leave it until you HAVE to sell.
Landlord 101: Written by Andrew Trim

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Choose a good agency to manage your property, not a good individual. Even good property managers shift jobs. If you choose an individual, there is no guarantee they will be looking after your property over the long term. Choose an excellent agency and there will be continuity for you and the tenant.
Landlord 101: Written by Andrew Trim

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Buying off the plan? Make sure the numbers stack up on current valuations. If the deal relies on capital growth, the purchase becomes a speculation rather than an investment. That’s fine, as long as the distinction is known.
Landlord 101: Written by Andrew Trim

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Investigate thoroughly all body corporate information and costs if buying in a strata title complex. Also, check for pending legal matters.
Landlord 101: Written by Andrew Trim

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Organise your own insurance.
Landlord 101: Written by Andrew Trim

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Don’t believe the myth of the house prices doubling every seven years. The average house price in Brisbane in 1973 was $17,500. If prices had doubled every seven years, in 2014 the average price would have been $1,120,000, whereas in 2015, it is around half that.
Landlord 101: Written by Andrew Trim

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Residential property management is governed by various state government acts and regulations. The benefit of a good agent is that they, not you, are responsible for upholding the law on your behalf.
Landlord 101: Written by Andrew Trim

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Remember, all the agencies costs are tax deductable.
Landlord 101: Written by Andrew Trim

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The more you learn, the more you earn. Keep studying and learning the skills of property investment. The same as with any endeavour, you will become better at it. Knowledge is power in property investment. You can never do too much research.
Landlord 101: Written by Andrew Trim