What Landlords Need To Know About Maximising Their Returns In 2020
Toowoomba has remained reasonably resilient throughout the recent property market downturn and is well poised to enjoy long-term growth.
Here’s how property investors in Toowoomba can make sure they’re getting the best returns from their investment property in 2020.
Attract and retain the right tenants
Having your property steadily occupied by reliable tenants is still the single best way to maintain cashflow. Focus on occupancy first and foremost by working with your property manager to have a strong marketing campaign and thorough tenant selection process. What type of tenant is interested in your property and why? And what are the main selling points of your property for a prospective tenant? When you find a good tenant, make sure you understand what is important to them, so that you can improve your chances of retaining them long-term. It’s also a good idea to have a game plan in place in advance for what you will do if they don’t renew their lease or leave suddenly. That way, you can minimise any periods of non-occupancy by being able to act fast.
Stay up-to-date with legislation
Making sure that you are always across your responsibilities and requirements as a landlord can go a long way to avoiding issues with tenants or unforeseen costs. Your property manager can help keep you current with legislative changes. For example, tenancy laws in QLD are currently under review, and changes will certainly result once the consultation process is complete later this year. Other relatively new legislation specifies that all Queensland dwellings will be required to have interconnected photoelectric smoke alarms in all bedrooms, in hallways that connect bedrooms with the rest of the dwelling and on every level. For more information, visit the Queensland Fire and Emergency Services’ website.
Know your property’s true value
It’s important to review your investment property’s current market value. Toowoomba is always changing, with a number of new infrastructure projects transforming the Garden City into a property hot spot. If you’ve had a long-term tenant it is likely high time to review the current market rate for comparable properties. Your property manager can also help keep you on top of when it is time to raise the rent for current tenants and advise you on what rental yield you can reasonably expect for your property.
Have a smart tax strategy
If you don’t have a tax depreciation schedule for your investment property you could be losing money. This is a document that tells your accountant how much depreciation you can claim in a year for standard wear and tear on your property. You will need to pay a quantity surveyor to obtain one, but this cost is 100% tax deductible and will save you money in the long run.
Don’t forget landlord insurance
As some investors found out to their cost during the Queensland floods, having the right landlord insurance policy is critical to avoid expensive repair costs due to floods, fires or storm damage. A good policy can also cover you against theft, vandalism and damage caused by tenants, as well as lost rent or any legal expenses incurred by dealing with problematic tenants. Be sure to shop around and read the fine print so that you understand exactly what your policy does, and doesn’t, cover.
Be on top of trends
If you are purchasing or updating a rental property it’s a good idea to be in the know about current home design trends and what tenants in your area are seeking in a rental property. It might be outdoor space, a pool, pet-friendly leases or simple things like built-in storage, and appliances like an air conditioner, or dishwasher. These days, more tenants are actively looking for energy-efficient rental properties to save money on running costs, and these updates can often be made at a relatively low cost.
Contact the experts today to find out how we can help you manage your investment property.