Investing in property was always on top of your list, and now, you can finally call yourself a landlord. But aside from offering good earnings, owning rental properties also comes with a lot of responsibilities and risks. This is why it’s very important to learn these five smart ways to protect yourself as a landlord:
- Learn about tenancy laws in Australia.
The first step to becoming an effective landlord is to know the tenancy laws in your state. These laws are created to protect both you and your tenant’s rights, so make sure that you learn about rental rates, notice periods, and other laws that will help you manage your properties better. Learning about these laws will also protect you against possible lawsuits in the future.
- Practice good tenant screening.
The truth is, you won’t have a hard time finding tenants because of how competitive the market is today. But you also don’t need to jump on the first offer you get just because you want to earn money. Instead, always do a thorough tenant screening before accepting anything to make sure that your property will be left in the hands of good people. Background checks should include previous rental references, credit history, employment verification, and other useful information that will help you weed out potential bad tenants.
- Invest in investment property insurance.
Investment property insurance should be non-negotiable if you’re a landlord because it will help to protect your finances should anything happen to your rental property. This will also give you a sense of security since there are things that you can’t control even if you have a lot of safety measures in place. With investment property insurance, you know that you will be protected as a landlord no matter what circumstances come your way. Make sure that you choose insurance that will offer coverage in case of damages, tenant defaults, and legal liabilities.
- Document everything about your rentals.
Proper documentation will save you from a lot of hassles when it comes to managing your rental properties. Make sure that you keep a record of all your communications, contracts, and agreements with clients, any inspections done on your property, any maintenance requests; and most importantly, all financial transactions.
Finally, it’s very important to always communicate with your clients promptly and effectively. Remember that being a landlord, you need to make sure that your tenants have a well-maintained property to live in. Keep your communication lines open, offer clear expectations before letting your tenants sign a contract, and be prompt in addressing any issues and concerns from tenants.
Being a landlord isn’t an easy job because you have to protect your rights, your tenants, and of course, your investment. So, if you’re just starting out in this field, make sure that you invest in insurance that will offer you the protection that you need. Get in touch with our team to know more about our insurance options for landlords in Australia.
