New Year's Resolutions for Property Investors

Here are a few suggestions to help landlords start the year on a positive note.

Resolution: Review My Insurance Coverage

Whether your insurance policies are up for renewal or not, the beginning of the year is a good time to ensure your coverage is current and suits your needs. Here are some tips for reviewing your landlord insurance.

If you don’t have specialist landlord insurance yet, it’s time to explore your options. Only a specialist landlord insurance policy can fully protect you against common risks linked to investment properties, such as fire, storm damage, theft, water damage, legal liability, loss of rent, and tenant damage.

Resoultion: I will stay informed about important legislative changes.

It is clear that real estate is always changing, with new rules and requirements coming into effect regularly. In recent years, many places across the country have updated residential tenancy laws. These changes include making it easier to rent with pets, banning rent bidding, setting minimum standards, limiting how often rent can be increased, prohibiting ‘no grounds’ evictions, and allowing minor modifications, among others. Think about how these legal changes could impact your investment. Any updates may change how you manage your rental and could also affect your landlord insurance.

While your property manager will help keep you informed about these reforms and their implications for your responsibilities, it’s smart to learn about any changes that may affect how you handle your rental.

Resoultion: I will take a proactive approach to repairs and maintenance.

When it comes to repairs, it’s important to address them quickly. Each state and territory has rules about urgent and emergency repairs that must be followed. However, you also need to handle non-urgent repairs and general maintenance. Taking care of these tasks will not only keep your tenants happy but also protect your landlord insurance, as it requires that you properly maintain the property.

Additionally, you and your property manager should be aware of the need to act to prevent further loss or damage. This means you must respond quickly if your rental is damaged. For example, you may need to board up a broken window or place a tarp on a damaged roof after a storm.

By being proactive with repairs and maintenance, landlords can save money in the long run, improve property value, boost tenant satisfaction and retention, and build better relationships with their tenants.

Resolution: I will spruce up my rental.

Even though it’s currently a landlord’s market due to the shortage of rental properties, you might want to think about giving your investment property a little refresh.

Simple updates, such as repainting, changing the flooring and window treatments, tidying up the garden, upgrading the lighting, adding security features, or renovating bathrooms and kitchens, can enhance the appearance of your property. These improvements can help attract and keep better tenants, increase rental income, add value to your investment, and possibly improve your tax situation (be sure to consult a tax specialist to learn more).

Resolution: I will evaluate the tenant screening process.

As the New Year approaches, if you’re experiencing a change in tenancies, make sure you and your property manager thoroughly screen any potential new renters. While you might have plenty of options with a larger tenant pool, it’s essential not to cut corners on checks like references, employment, and credit history. Choosing the wrong tenant could lead to issues later on, especially if they become a financial burden by failing to pay rent or causing damage to the property.

Resolution: I will organize my paperwork.

Getting organized is a common New Year’s resolution, and it can bring significant benefits for your investment property. Besides reviewing your insurance, take some time to look at other important paperwork related to your rental property, such as:

• Mortgage: Ensure you have the right type of mortgage for your needs and that you’re getting the best deal possible.
• Tax invoices and receipts, and depreciation schedule: These will be useful for your tax agent and help you plan for ongoing running costs and future improvements.
• Rental ledger: Keep track of any arrears promptly, as the insurance requirement to prevent further loss applies to both rent and property damage. Accurate records are also essential for tax purposes and for any claims related to loss of rent insurance.
• Service contracts: Check if contracts for services like property management, maintenance, cleaning, and lawn care are due for renewal.
• Tenant personal data: Make sure any personal data you hold is kept secure and protected.