For millions of hardworking Australians, investing in real estate is a path to securing long-term financial security.
Property prices in Sydney have experienced unprecedented growth over recent decades. Investors have benefited from significant asset growth over that time and can look forward to comfortable retirements in the years ahead.
Property can be a great investment strategy, but that doesn’t mean it’s free of pitfalls. There are some things you need to watch out for to ensure your investment dream doesn’t become a nightmare.
Among the main risks you can face as a property investor are undesirable tenants.
As an investor, one of the main challenges you could encounter are tenants who don’t pay their rent on time. Like many people, you may have borrowed heavily to acquire your investment property. When tenants either don’t pay their rent, or pay late, this can have disastrous knock-on effects. Most investors depend on the rental income from their property to make loan repayments. If the rent doesn’t come in on time, repayment schedules may be missed. The consequences could be large penalty fees and substantial out-of-pocket expenses.
Another significant risk you can face as an investor are tenants who damage your property. Substantial property damage could leave you with bills amounting to many thousands of dollars. And while you may be able to claw some of those costs back from the tenant’s rental bond, you may not get full reimbursement. Reimbursement could also be more difficult if the tenant challenges you in the NSW Civil and Administrative Tribunal. Tenants also have rights to due process which they may exercise. The time and expense of going through the Tribunal may simply not be worth the hassle.
So what steps can you take as an investor to avoid the potential pitfalls associated with undesirable tenants?
Thankfully, Devine Real Estate has the experience to help you find the right tenants for your investment property!
Property management is one of our core service areas. We believe that successful property management is about much more than finding a tenant and collecting the rent. Over decades, we have developed unique strategies to ensure your investment’s success.
At its core, our commitment is to secure the best quality tenant, for the highest possible rent, in the shortest possible time.
To achieve this outcome:
- We work with you to determine what’s best for both you and your property.
- With an unparalleled presence in the Inner West market, we have a constant stream of potential tenants in search of homes.
- Our leasing team undertakes extensive vetting of all potential tenants.
- We conduct both financial and character checks to reduce the risks, ensuring you end up with a quality tenant.
- Once we have short-listed the best quality tenants for your property, the candidates undergo further vetting by our senior property manager.
Devine Real Estate also conducts regular reviews of properties it has under management. Properties are thoroughly documented and closely monitored to ensure they are maintained in excellent condition.
This entire process is aimed to give you peace of mind knowing that your rent will always be paid on time, and that you won’t experience any unforeseen repair costs.
At Devine Real Estate we are committed to ensuring property investors are well-looked after. Contact us today for further information about our property management services and enjoy the peace of mind that comes from knowing your investment is in the best hands!
Devine Real Estate
T: 02 8789 0217 | M: 0419 202 930