3 Common Landlord Disasters (and how we avoid them!)
Having a rental property is a great way to invest your money, and helps to pay off a hefty mortgage. However, like all forms of investment, there are risks associated with this practice. This article will explain 3 of the top landlord disasters, and how the team at Smart Property Manager reduce these risks.
Risk One: poor tenant selection.
A poor tenant can ruin the best laid property plans. It is vital that the tenant of your investment property is respectful, organised, and clean – not only in regards to your property, but to your neighbours and others. Naturally, if you trust and respect someone enough to allow them into your home, you’d expect them to respect you and your wishes in return. The last thing you want is damage to the property, or the reputation of the property within the neighbourhood to be damaged. Organisation in regards to rental payments, maintenance requests and the everyday running of the property is highly important. It’s also important to maintain the overall cleanliness of a property to reduce the risk of pest infestations.
At Smart Property Manager, we have a very strict tenant selection policy. This involves screening tenants through references, databases, social media, and more. As a boutique property management business, we have the time and resources required to select only the best tenants for a property. We will only approve tenants for yourproperty, which we would approve for our own property.
Risk Two: insurance loopholes
You MUST make sure your insurance covers all aspects of your investment property. Too often, landlords will just get home insurance. You need to make sure you’re covered for as much as possible: accidental damage, deliberate damage, flooding, landlord risks, pet damage, and disaster repairs. Smart Property Manager can assist you in highlighting the potential risks of a property so that you are well informed on exactly which kind of insurance you need.
Risk Three: when a molehill becomes a mountain
The smallest maintenance issue can often turn into a catastrophe if left unattended. A slight leak in the roofing or guttering can turn into mould damage and/or collapsed roofing. A minor leak is much more cost and time effective to repair than an entire section of roofing. The same goes for chips in windows, plumbing issues, electrical issues, and more. Smart Property Manager takes every maintenance request very seriously, and act promptly to ensure any problem does not grow. We also strive to save time and money by completing simple maintenance issues ourselves when appropriate (wonky cupboard hinge, squeaky door, etc)