If you have troublesome tenants, investment properties can lose income and incur large costs. So what can you do to ensure any early issues that arise with your tenants don’t turn into a major headache down the road?
Here are some steps you can take before issues become unmanageable:
Deal with the issues early
If your investment property is managed by a Property Manager, then chances are he or she identified the issue. Once identified, it’s best to try and resolve the problem ASAP before the matter escalates. Depending on the problem, your Property Manager will be able to guide you on your options.
For example, if during a routine inspection, minor property damage is found at the fault of your tenants, your Property Manager should notify you and also discuss with your tenants, asking them to rectify the issue or pay for it to be repaired within a specific timeframe.
If this is not done, your Property Manager should follow-up with tenants, and if need be, will guide you through the process of making a claim.
Make sure everyone understands their obligations
As a landlord, you have entered into a legal contract with your tenants to exchange accommodation in return for payment.
Make sure it’s clear that rent must be paid in full and when it’s due to be paid. If your property is being professionally managed, your Property Manager will make this clear to the tenants from the outset, in writing.
If rent has fallen into arrears, there are things to consider before starting formal proceedings. Again, your Property Manager will guide you through this process and handle communication on your behalf.
Make sure you are getting regular property condition reports
Property Managers know the ins and outs of property condition reporting. Property condition reports protect you from potential conflict with your tenants by ensuring photos and detailed descriptions are taken for the property at the start of the lease agreement. This means if any damage is found when the tenant moves on, both parties are protected by a condition report to resolve the problem.
Be prepared if a dispute does escalate
If an issue can’t be resolved, a Property Manager will appear on your behalf at an administrative tribunal to provide evidence and handle the matter.
Property Managers are required to keep detailed records of agreements, inspections and even conversations – all of which are helpful if disputes escalate.
For more information on managing your investment property, speak to our professional Property Management team on 4628 7444.