Brighter Landlording

#5 tips to help “accidental landlords” turn a deliberate profit

by Kate Watt, Marketing Manager 14 December 2018

A story on the “accidental landlords” caught our attention this week. It’s easy to splurge on a new pair of shoes (I just had to have them) or find yourself an instant pet owner (it followed me home). But how do you accidentally acquire an investment property?

Turns out it’s easier than you think with new data showing one in five first time landlords become property investors unintentionally because they choose to keep their home when they buy another one.

The observation comes from MCG Quantity Surveyors managing director Mike Mortlock who found 23 per cent of his clients had lived in their investment property as their principal place of residence, reports news.com.au.

Owners lived in their former home for four years and 11 months on average.

While it’s a great position to be in, newbie landlords can learn lessons the hard way if they don’t seek out good advice from a team of experts including local agents, their accountant and quantity surveyor.

Here are #5 tips from Property Update that will help any landlord – accidental or otherwise – attract and retain good quality tenants.

  1. Be realistic about your rent, follow the advice of your professional property manager.
  2. Accept that markets change and any time your property becomes vacant you need to reality check whether to raise, sustain or even lower the rent.
  3. Maintain your property to protect your investment and also retain good tenants who will appreciate a tidy house in good working order.
  4. Consider reasonable requests from good tenants e.g. to upgrade an old appliance.
  5. Consider pets. Animal owners know how hard it can be to find a pet-friendly property so you may have a good chance of a long-term tenant if you allow pets, ensuring your property manager puts a pet clause in the lease to protect everyone’s interests.

Did you slip and fall into an investment property? Talk to us about landlording.