Frequently Asked Questions- Property Owners
Whether you’re about to buy your first investment property or you already own several, chances are you still have a handful of questions regarding the management of your property. We’ve answered some of the more common questions we get asked below. If you would like to find out more about having First National Real Estate Tamworth take care of the management of your investment property, please contact us (02) 6766 6122 or email [email protected]
How do I change the management of my property over if it is currently being managed by another agent?
Simple! If you currently have a property managed by another agent and for any reason would like to change over to First National Real Estate Tamworth, all you have to do is contact our office and we will take care of the rest. If you choose to have us manage your investment property we will organise for your tenants to be notified and for the keys to be collected from your managing agent. Everything else carries on as usual. Changing your managing agent couldn’t be easier.
How long will it take to find a tenant for my property?
This is a common question and unfortunately there is no one answer. However, we can tell you that properties that are better presented, more professionally marketed, priced according to market conditions and represented by a professional agent, will be rented more quickly.
What happens if my tenant doesn’t pay rent?
We have invested in technology which allows us to monitor tenant arrears on a daily basis. As soon as the tenant appears on the arrears list we contact tenants via telephone, email , SMS and arrears letters to follow up on payments. On the 14th day of arrears a Notice of Termination will be issued to the tenant. If rent is still not paid before the Notice of Termination expires an application to Tribunal can be lodged. We will communicate with you throughout this process and nothing will never be issued without discussing the situation with you first. It is our intention at all times to minimise any loss to the owner so these actions need to be carried out promptly.
What do I do if I want to sell my property?
If we currently manage your property and you are looking to sell (or even if we don't and you are looking to sell), your choice of agent is critical in ensuring you get the best price in the sale.
So how do you get your tenant on side?
- Firstly give them plenty of advance notice of your intentions
- Go and discuss it with them personally if you are able
- Find out what their intentions are, would they be hoping to stay for a long time in the house whether you own it or not; maybe they are getting ready to move on.
If they want to stay and you need them to leave how disruptive will this be
- Are you able to offer them free relocation assistance
- Would you consider covering their moving costs
- Help them find a new property for nothing
- Maybe offer a financial incentive
All these things have to be considered, the greater your need to sell the property, the more you will need your tenants co-operation. You must not bully or harass them, make sure they are introduced to your sales agent, agree a viewing schedule and make your agent stick to it. Keep them in the loop, the more they know the more secure and cooperative they should be.
Do I need landlord’s insurance?
As with any insurance policy, it is not compulsory to have landlord insurance on your property. However, as property specialists, it’s our expert recommendation that every investment property owner has a specific landlord insurance policy in place for their property. Landlord Insurance protects you in the event of a tenant not paying rent, departing the property early or damaging the property. It also includes public liability and limited cover for contents (e.g. floor coverings, curtains).
While there are plenty of options out there, we suggest choosing very carefully. Many policies provided by the major banks are worthless! Be sure to look at how well a policy can cover unpaid rent, liability claims, damage to contents and extreme weather, and most importantly have a look at the excess conditions.
There are only a handful of specialist landlord insurance providers. If you'd like us to point you in the right direction, feel free to ask.
How should I know what my property will rent for?
You will get the best indication of what your property should rent for by closely comparing it to other properties similar to yours that are currently being rented, or have just been rented, in the same area. Market forces will determine exactly what amount of rent you achieve. If you have a very popular property you will get more interest and subsequently a higher rent. If you have a property that is less rentable, you will find it hard to command a premium rent.
Our property managers are trained to negotiate the best rent increase possible without costing you a good tenant. If your property manager doesn't know exactly what your property should be renting for, then you could be missing out on valuable rental income.