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 decissions 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 your 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.

Here at Kies Property Management 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.

Solution

At Kies Property Management we offer a service guarantee which gives you peace of mind. If you are not happy with our service and we cannot remedy the problem we will release you from the agreement immediately.

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

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.

At Kies you are dealing with the owners of the business who have a vested interest with Carina McFall having been in the industry for over 25 years.

Solution

Go with an agent who has a good reputation here at Kies Property
Management most of our clients are referred by current or past clients who are happy with our service.

We have had previous tenants return as Landlords because they know that we are efficient and ensure they leave the property as they found it and want this service again for their own investment..

Mistake 3
Open Inspections

Many agents book viewing times and hope tenants will turn up and one will be suitable. At Kies we take applications first then check all references and screen them before booking a viewing. This not only ensures that the best tenants view the property it also ensures the security of your property as without applications anyone could view and be checking the place out for possible break-ins.

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

Solution

Ensure your tenants are screened before the view- ing this way only suitable tenants are showed your property . Ensure your agent knows what they are doing.

We go through the applications with our Landlords and the final decision is yours.

Experience is a essential credential that you should expect.

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 at Kies charge a professional 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.

Solution

Ensure your agent is a good negotiator and has experience.

If they cannot negotiate their own fees effectively then how can you trust them to get the highest rent from your tenant??

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.

Solution

If you don’t feel comfortable and trust them do not list with them.

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 land- lords because most don’t know what they are doing and 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.

There is no reason why a tenant can sit in a property for 6 months and not pay rent if you use the system.

Solution

If you have a good agent they are worth their weight in gold. Ensure your agent has lots of hands on experience.

Your investment should be as effortless as possible and let the agent have all the worries.

A good agent will ensure all the t’s are crossed and i’s are dotted.

All paperwork has to be done properly and all conversations recorded so that no miscom- munication can occur.

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.

And attracting a good tenant means higher rent and less problems and hassles.

Solution

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

Start out the way you mean to continue.

Mistake 8
Not maintaining property

Most landlord 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.

Solution

Ensure you do regular maintenance and continue to upkeep the property. You will need to re-paint every few years and and maybe replace carpets, blinds, curtains.

A 10 year old property starts to look worn and does need to be updated as you would your own home just because it is rented doesn’t mean no maintenance.

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 advise 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.

Solution

Have your own registered and qualified tax agent prepare your returns. Do not rely on someone who is not qualified to give advice.

You can also have a tax depreciation schedule done to ensure you can make as much claims as possible.

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 a reserve fund to fall back on. If your hot water service goes or a major repair 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.

Solution

Choosing the right tenant can hopefully ensure a lot of issues are avoided, but circumstances change and no-one can for-see the future.

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.