Top 10 Tips for First Time Property Investors

As a first-time property investor, there are certain things we would recommend knowing that will set you up for great returns and stress-free tenancies well into the future.


1. Maximise your rental return

Most tenants will do the right thing and pay their rent on time, and we send out reminders to ensure that your tenant’s rent is paid on time, however, if for some reason it isn’t we will make sure you are kept informed so you can adjust and budget for this accordingly.

We also provide all our clients with regular rent reviews to ensure you are maximising the return on your investment.


2. Budget for expenses

Owning an investment property is like owning a business and your rent is your revenue. You will have expenses (mortgage repayments, council rates, and land tax, insurance, maintenance etc.) so it’s important to make sure that you budget for these items.


3. Thorough tenancy checks

Your tenant can either make or break your investment. A good tenant will ensure a smooth, stress free tenancy but a bad one can be extremely costly and time-consuming.

We thoroughly check each applicant’s rental history, among other things to relieve you of this hassle before presenting you with all applications so that you can make an informed decision on which applicant would make the best fit.


4. Ingoing Condition Report

Once you have carefully chosen a tenant, before they move in, it is important to have a very thorough report that details the condition of the property when your tenant first moves in, as this forms part of the legal document that can be called upon at the end of the tenancy agreement if there is any damage that has occurred. It is a good idea to take the time to thoroughly read through this report, as it can show if there are any maintenance items that you may have missed – particularly if you have purchased a brand-new property as these ‘defects’ you should be able to have rectified by the builders within the first 90 days of settlement.


5. Knowing the law

At McIntyre Property we undertake regular training and are always striving to be at the forefront of any new legislation. This means you can feel confident that the advice you receive from your property manager complies with the current ACT legislation, so that you can be confident your interests are protected.


6. Present your property to attract the tenant you want

Good properties will attract good tenants. We don’t mean expensive, but well-maintained, clean and well-presented.

If you want to attract tenants who will keep your property clean and well-maintained, then it should be presented to them initially as clean and well-maintained. Touching up paint, giving the property a good clean and removing any odours will go a long way in finding good quality tenants. Not only will you attract a better calibre of tenant,  your property will also stand out in a competitive market.


7. Don’t over-capitalise

It’s so easy overspend when renovating your investment property but it’s important to make sure you renovate with your return in mind. Finding the balance between not skimping and not overspending is difficult.

A good strategy can be to look at what’s currently leasing in the area around the rental price you would like to achieve after the renovation. This helps identify what parts of the house require the attention to get the returns you want. This can help you weigh up the cost vs return pretty easily and justify every dollar being spent.


8. Have a great team

“If you think it’s expensive to hire a professional to do the job, wait until you hire an amateur”

Having an experienced mortgage broker, property management agency and accountant will add value to you instantly with hints, tips, and professional advice. We are always available if you have any questions, or are wanting to have a chat.


9. Good marketing is essential

Having a good marketing plan for your property will stop you from having long and costly vacancy periods, it will also help you attract plenty of good tenants. Who doesn’t like to be spoilt for choice?

At McIntyre property we take the hassle out of organising this for you, by assisting with high resolution professional photos and good advertising on real estate portals to give yourself the best chance of leasing your property quickly.


10. Regular inspections are a must

It’s essential to ensure your investment property is being looked after and no maintenance is going unnoticed. We conduct routine inspections  every 6 months to keep an eye out for any building damage (cracks in walls, building movement, shower deterioration), excessive wear and tear or tenants who aren’t looking after your property. We will always let you know before the inspection is going to occur in case you would like to attend as well, or if there is something you would like us to check on.

You should keep the condition of the property in mind when considering extending the tenants lease or increasing their rent in the future.

Hopefully these tips will be of benefit to you, if we can help with any queries at all, why not give us a call on 6294 9393.

Speak to our Canberra based real estate agents, we'd love to chat