Information for First Time Property Investors
Information for First Time Property Investors
We understand that as an investor, you have a lot on your mind after deciding to buy an investment property. There are many things you will wonder about, from selecting the right property manager to deciding whether a 6 or 12-month lease is best. We have created the following to assist you in answering any questions you may have and to assist you in making the best decisions for yourself and your investment.
Selecting Tenants
When it comes to selecting a tenant, we know how important it is to choose the right person(s) you know and trust will take care of your property as if it were their own. You should always have the final say when it comes to choosing a tenant, as an agency we complete all reference checks, and provide a professional opinion on who we would recommend while also allowing you to view all applications and supporting documents.
Can I say no to pets?
Although there has been much speculation around the rights of both the tenant(s) and investor(s) when it comes to whether pets are allowed in a property, we are here to clear things up. Under current Queensland legislation, landlords do still reserve the right to say no to pets, however, as of 1 October 2022 landlords can only deny pets if the refusal is deemed reasonable, and all tenants are allowed to negotiate renting with pets. To learn more about the upcoming law reforms, click here.
As an agency, we generally recommend listing a home as pets negotiable, depending on the property. Please keep in mind that if you say no to pets, you may be cutting yourself off from approximately 80% of the market in Toowoomba. If you approve a pet, we do require tenants to sign a pet agreement assuming full responsibility for the pet, so if it paws screen doors, digs holes, upsets the neighbours, and so on, it could be considered a breach of their agreement.
Do I need to have a bond clean done prior to renting my home?
It is strongly advised that a professional bond clean, flea treatment, and carpet cleaning be performed prior to tenancy. We recommend this because if we hand over the property in pristine condition, we can keep that standard for future tenancies and require that the home be returned to that standard at the end of each tenancy.
Should I opt for a 6 or a 12-month lease?
Typically, we do suggest a 6-month lease initially, however, there are many circumstances where a 6-month lease is preferable and equally as many instances where a 12-month lease is preferable. A six-month lease will give your property manager time to get in and complete their first inspection, make sure you are happy, the tenant is happy, and everything is moving along smoothly, then offer a 12-month lease from there. Alternatively, if you did receive a very strong application that had great rental history, had been in their job for quite some time, etc. it would be worth considering locking them down for 12 months. On the application, we do ask tenants what their preference is, which is then presented to the landlord to either approve or decline from there.
Can I charge tenants for water consumption?
Providing the home meets these standards, you can charge the tenant for water.
What happens if the tenant damages the home?
Landlord insurance is something we would strongly recommend to every investor to provide a piece of mind. To read more about why we advocate for landlord insurance, click here. If a tenant maliciously damages a home, should the damage exceed one week’s rent, our agency will contact you and discuss your options. A Form 11 Notice to Remedy Breach will be issued providing 7 clear days’ notice for the issue to be rectified. In the event the tenant fails to rectify the damages, the agency may then move to issue a 14-day Form 12 Notice to Leave for failure to rectify a Form 11 Notice to Remedy Breach.
What happens if the tenant stops paying rent?
As soon as we are aware of the overdue rent, we make every effort to contact and notify the tenant by contacting them, via email, phone, and post. Once the rent reaches 8 days in arrears, we will then issue a Form 11 Notice to Remedy Breach for Rent Arrears.
Can I use my preferred tradespeople?
Landlords can certainly use their preferred tradespeople, and when it comes down to it, it is the landlord’s choice. There can, however, be benefits in using the tradespeople your agency recommends. The advantages of using the recommended tradies are the following:
- The agency knows and trusts these contractors
- The agency knows and trusts the quality of the tradespersons work
- The agency has a copy of their public liability insurance
When will I receive my rental payments?
Here at RealWay, we offer two options, either Mid and End of Month or just End of Month. There are no extra charges associated with choosing one or the other, it simply is dependent on your personal preferences when considering how your finances are structured. Mid & End of Month disbursements are paid the first working day after the 15th & again on the first business day of the month. The end-of-month disbursement is paid only on the first business day of the month.
Becoming a property investor is an exciting time that can be very profitable, but it can also come with many challenges. To ensure you have all the correct and up-to-date information, we recommend speaking with your preferred property manager.
If you are thinking of purchasing an investment property, our team here at RealWay offers an exclusive investor support service. To learn more, click here or contact Grace on 0437 637 232.
*Please note that some of the information provided is exclusive to RealWay Property Partners.
