New year resolutions for property investors

The start of a new year is always a good time to make some resolutions. While old favourites like ‘exercise more’ and ‘save money’ will be top of mind for many, why not make some resolutions about your investment property?

To make it easy, we have listed a few resolutions below that will help landlords go into the new year with a smile.

Resolution: I will review my insurance cover

Whether your policies are due for renewal or not, the start of the year is often an opportune time to check that your insurance covers are up-to-date and meeting your needs. Check out our tips for reviewing your landlord insurance cover. 

If you don’t already have specialist landlord insurance, it is time to look at your options. It is only through a specialist landlord insurance policy that you can be protected against the full scope of risks common to investment properties, like fire and storm, theft or water damage, legal liability and tenant-related risks like loss of rent and tenant damage. 

Resolution: I will keep up with relevant legislative changes

It is fair to say that real estate is constantly evolving, and new rules and requirements periodically come into play. The last couple of years have seen jurisdictions across the country amend the residential tenancy legislation to include changes such as making it easier to rent with pets, banning rent bidding, imposing minimum standards, capping the number of times rent can be increased, prohibiting ‘no grounds’ evictions, and allowing minor modifications among others. Consider how changes to laws and regulations could affect your investment. Any changes may not only alter the way you operate your rental, but also impact your landlord insurance.

Even though your PM will help to ensure that you are across the reforms and what they mean for you in terms of your obligations, it is a wise idea to familiarise yourself with any changes that may influence how you manage your rental.

Resolution: I will be proactive with repairs and maintenance

When it comes to repairs, you need to deal with them in a timely manner. The states and territories have rules about urgent and emergency repairs, and these must be followed. But you also need to deal with non-urgent repairs and general maintenance. This will not only keep your tenants on side but help to safeguard your landlord insurance – there is a condition of cover that states you must adequately maintain the premises.

There is another condition you and your PM need to be aware of too – and that is a requirement to act to prevent further loss or damage. To meet this obligation, you will need to act swiftly if your rental is damaged (for example, you might need to board up a window if it is broken or put a tarp on the roof if it has been damaged during a storm).

Ultimately, by being proactive with repairs and maintenance, landlords may be able to save costs in the long run, enhance property value, increase tenant satisfaction and retention, and foster better tenant-landlord relationships.

Resolution: I will spruce up my rental

Although it is a landlord’s market (given the shortage of rental properties) and money may be tight, you may want to consider giving your investment property a little facelift.

Minor improvements, like re-painting, updating flooring and window treatments, sprucing up the garden, upgrading the lighting, adding security, or giving bathrooms and kitchens a makeover, can improve the presentation of your property. This can help attract and retain better tenants, yield higher rents, add value to your investment, and may even improve your tax position (chat with a tax speicalist to learn more).

Resolution: I will review the tenant screening process

If the New Year sees a changeover in tenancies, be sure you and your PM carefully vet any prospective new renters. Even though you are likely to be spoilt for choice with the prospective tenant pool, do not scrimp on the checks (references, employment, credit). If you select the wrong tenant, you could have problems down the track if they prove to be a financial liability by failing to pay the rent or causing damage.

Resolution: I will organise my paperwork

While getting organised is a regular New Year’s resolution, it is one that can pay dividends when it comes to your investment property. In addition to reviewing your insurance, dig a bit deeper to check other paperwork relevant to your rental property, like:

• Your mortgage – check it is the right type for your circumstances, and that you are getting the best deal. 

• Your tax invoices and receipts, and depreciation schedule – in preparation for your tax agent and to help budget for on-going running costs and capital improvements. 

• Rental ledger – it is important you get on top of any arrears quickly (the insurance cover condition to act to prevent further loss applies to rent as well as damage). Accurate records are also needed for tax purposes and any loss of rent insurance claims. 

• Contracts for services like property management, property maintenance, cleaning, lawn mowing etc. – are they up for renewal? 

• Tenant personal data – you need to make sure that any data that you hold is kept safe. 

These resolutions are easy ones to stick to. In fact, if you follow through on the above, you may be a lot closer to being financially fit, alleviating the weight of worry about ‘what ifs’ and ultimately save money by protecting your assets! Got questions about landlord insurance? Contact the EBM RentCover team on 1800 661 662.  

*While we have taken care to ensure the information above is true and correct at the time of publication, changes in circumstances and legislation after the displayed date may impact the accuracy of this article. If you need us we are here, contact 1800 661 662 if you have any questions.