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Common mistakes of property management

Under-renting

Impression property management help section, know your rental market

Is your property under-rented?  Impression makes it easy to find the market rent for your property.  Use our rental statistics page for your apartment, or talk to one of our property managers about your residential rental.  

Keeping well informed of the rental market is vital to ensure you are reaching your investment goals. 

You need to make sure that your 'per week returns' are in line with increases in the area. Equally as important is to ensure that you don’t overinflate your rental charges - unrealistic levels can result in higher vacancy rates which is a killer for long-term returns.

Poor financial management

Rental properties require comprehensive financial planning. All properties incur standard expenses such as rates, body corporate, insurance, etc and you need to allow for these. You also need to budget for maintenance and damage which means that you can avoid surprise expenses that lower your returns.

Including a renovation budget will protect your asset, keep the property to a high standard of quality and therefore attract quality tenants willing to pay full market value.  Impression provides a free registered financial advice service to all its owners - talk to your propery manager today to make an appointment.

Tenancy agreement problems

Impression Real Estate, help on the residential tenancy act 1986

Tenancy agreements can be complicated, but Impression's property managers are trained to know the legislation inside out.  

It may not be so simple for DIY landlords.  The Residential Tenancy Act 1986 and Residential Tenancy Amendments Act 2010 are a complex and comprehensive protection for both landlords and tenants. Knowing your legal requirements and ensuring your written Tenancy Agreement/Lease documents are within the requirements of the Act(s) should lead to a fairly painless and problem-free relationship between the owner and tenant.

While you may think that adding preferences or clauses to your agreement is harmless, if deemed outside the law, this may result in your agreement being null and void. Worse yet, exemplary damages may be awarded and sometimes this will include monetary compensation.

Not planning for expected seasonal downtimes

We often hear banks and other financial advisers calculating rental returns on 50-week or even 48-week occupancy rates.  Rental vacancy periods are similar to that of sales and go in cycles. While the sales market is often affected by bank and government trends, this can still have an effect on your rental property occupancy. 

If your property is located close to a University or student-driven area then holiday, exam and Christmas periods will have an effect on property occupancy - regardless of the type of property. Although your property may not be a typical student accommodation, when supply is too high, prospective tenants have a greater choice and lowering rates and can result in extended vacant periods.

Impression has very low vacancy rates - often below 2% - but they never reach zero, so you need to have a plan for a short vacancy period with any property.  

Not screening your tenants properly

Impression Real Estate, rental property is a big asset

Your rental property is often your biggest asset (second only to your own home) so selecting the right tenant who will respect and take care of it is vital.  Our owners usually have several tenants seeking to rent each property, allowing us to be particularly selective, but DIY landlords may find themselves stung by a problem tenant.

You might say ‘you have never had a problem’ and ‘agents can be overly cautious when it comes to tenant selection’, however we have all heard of nightmare stories and we don’t want you to be disappointed.  Damages and vacancy due to undergoing remedy works can quickly incur thousands of dollars in costs.  A comprehensive application process is crucial to minimise any tenant problems.

© 2017 Impression Real Estate Limited - Licensed Real Estate Agent (REAA 2008)