Methamphetamine no longer covered under Real Landlord Insurance Policy
In September 2017, we were notified by Real Landlord Insurance that their policies will no longer include methamphetamine contamination coverage on any future new business and renewal policies.
Please review your existing building policy to ensure that you have the appropriate levels of cover for your requirement.
The notice we sent out on the 26th of September has the full details (please click through to view), or if you would like more details, please contact your Uno Property Manager.
Being Lease Compliant – It’s About Minimising Risk
Upon entering into a new lease agreement, your property manager will need to ensure that your lease complies with current legislation that affects all rental properties.
In today’s leasing environment there are a raft of compliance issues that need to be addressed before entering into a lease agreement, some of which have not affected lease agreements before.
Obviously there is a cost to the property investor to ensure compliance, however the risk of non-compliance far outweighs the cost of compliance.
A large number of property investors are ignoring the need to have their property lease compliant simply because they haven’t needed to do it before or, they cannot see the benefit of the cost.
By ensuring that your property is lease compliant, not only with Residential Tenancy legislation, but by compliance legislation (as detailed above), the property investor avoids the risk of having an invalid tenancy agreement, or facing heavy penalties and having any insurance claim denied in the event of a loss in the above events.
Worse still the non-compliant property investor could be liable at law in the event of a public liability claim as a result of a non-compliance loss. As an industry we have already seen this occur following house fires in rental properties where the property investor becomes personally liable should the property not be smoke alarm compliant.
Your property manager is faced with the unenviable task of informing you of these additional lease compliance costs, however the advice must be heeded to ensure that your property is compliant and so you minimise your risk of legal action and additional costs.
3 Tips for the New Real Estate Investor
Becoming a real estate investor has lots of advantages, one advantage of investing in the real estate business is that even in times of economic hardships, it will always give better returns than stocks and other types of investments. After all, land is a finite resource and people are always in need of a place to live, play, work, and shop. Thus, for real estate, it’s a matter of demand and supply. Besides, the value of real estate will continue to increase despite the occasional economic turmoil.
It has been proven to be one of the best ways to create wealth, and with it, you don’t need to be a genius or have immense wealth to succeed. Here are a few expert ideas to get you started as a new real estate investor.
- Inspect plenty of properties
Don’t just buy the first property you encounter. Many real estate investors avoid putting in the effort to look at the many opportunities out there, and they end up buying properties because they “look nice.” Anyone who had made a purchase on impulse can probably understand why this isn’t a wise investment strategy. Taking the time to investigate the various pros and cons of a property is important. Doing this will help you assess whether the property is worth your time and money. This is especially true if there are details that will need to be renovated or remodelled, as they can be easy to overlook if you just give the place a cursory look. Since you won’t be living there, don’t make your investment decisions according to your personal preferences. Although you should not be a victim of analysis paralysis, ensure you take the time to look at a wide variety of properties. Give yourself lots of options and then make your choices based on the criteria you have laid down for yourself. It’s a much better investment to spend a little bit of time considering multiple properties, rather than spending a lot of your time upgrading a poor purchase.
- Build your financial goals
Before making your first analysis or purchasing your first property, determine your expectations from your investments and understand your financial goals. In the “time vs. money” theory, the more you have either one of them, the less you need the other to achieve your financial goals. Thus, take the time to understand your goals and ensure that each investment you make is a step towards achieving your dreams. If you don’t know how to establish financial goals, seek the services of a financial advisor.
- Determine the best areas to find properties
Many investors limit their search for properties to areas near their home. Often, however, the best rental areas may be situated a bit further away. A lot of times investors think they should live near their properties to keep an eye on them. However, it may make more sense to simply hire a property manager in the area where your properties are located. This is another great way to help you get your properties purchased in the best location possible.
Investing in real estate offers you an excellent opportunity for building wealth. However, it also requires you to lay a firm foundation by knowing how and where to source for suitable properties, setting sound financial goals, and choosing an experienced property manager to help you with your investment.
Finding the Right Property Manager
If we are not doing any of these things, please let us know! When selecting the right property manager, it is important you consider these important factors.
- The agent will accurately appraise your rental property to quickly rent your property to quality tenants and keep your vacancy period to a minimum.
- Understands the importance of ensuring the presentation of the property is maximised to attract the right tenant, who in turn will pay the rent on time and respect the property.
- Knows the importance of in-depth tenant induction when a tenant moves in, ensuring they are well educated on the right expectations for a much better chance of tenancy success.
- Believes the rent must be paid on time every time and educates the tenant accordingly with their zero tolerance to rent arrears policy.
- Promptly attends to repairs and maintenance as they are observed or reported by the tenant.
- Quickly negotiates a new lease renewal term and keeps the rent maximised at lease renewal time, in liaison with the property owner.
- Ensures the property is kept well maintained at a high level of cleanliness at property inspections and quickly follows up with the tenant anything found to be unsatisfactory.
- Makes sure the property is vacated satisfactorily to a high standard of cleanliness, allowing for reasonable fair wear and tear, comparing the property to a comprehensive written ingoing inspection report and a variety of digital photos taken at the tenancy start.