How protected are your assets

Losing tenants or failing to replace them quickly can result in a painful hit to an investors cash flow. To help protect your assets against this you need to remain competitive. Don’t be tempted to increase your rent above what the market is prepared to pay and ensure that your property is well maintained and includes features that today’s tenants have come to expect.

Your property manager is a great resource and can provide you with all necessary market intelligence and how much your rent increases could be whilst still remaining competitive.

Additionally, to help protect your asset for the future, ask your property manager to provide recommendations and a schedule of jobs worth doing over the next 1-3 years. Enhancements such as installing air conditioning, adding a garage or an outside entertaining area, adding a laundry or re-doing the kitchen may be required to protect your asset, but undoubtedly will require you to budget for the expenses, so having a 3-year plan is important. At the same time your property manager should be able to give you a guide as to the likely payback in terms of rent increases that the enhancements will bring.

Preparing for the future is important to protect your assets

Are your assets structured and insured effectively?

Whilst many of us feel financially secure as a result of owning an investment property, it is important to also consider if it is structured and insured in the right way to withstand any potential nightmares.

Many investors understand the importance of being protected but they fail to take out insurance or to receive the full benefits associated with their policy. Without the correct insurance in place, investors run the risk of losing everything if something goes wrong. For an investor, or for that matter any home owner skimping on insurance is not a good idea.

As an example, if someone was injured or worse at your investment property, and there was a lawsuit brought against you, it is possible that your insurance would not fully cover the amount of the claim. If your investment is owned in your own name, then all your assets can be claimed in the lawsuit including your own home!

Setting up the right structure when purchasing an investment is critical and it is important that you seek advice from your financial planners, accountants and solicitors who have experience with property. They will be able to assess your overall situation and help you implement a strategy that is most suitable to your circumstance and your portfolio.

8 ways to attract executive tenants

A quality investment property in an urban location near transport, cafes, business and commercial premises is highly likely to attract an executive tenant.

They’re usually time poor, sophisticated, used to travel, want a comfortable home and can afford to pay top money either out of their own or their company’s pocket. In other words, most are great tenants you’d love to attract!

Now, with the New Year just around the corner, many executives are relocating either for a new permanent role or contract and are ready to move. So how can you make your furnished investment property an attractive, potential corporate rental?

Make a great first impression

If your investment property is a house with a front garden, spend some time tidying up the garden beds, remove any weeds, water blast the paths, paint the fence and clean the windows. If you own an apartment, perhaps add window boxes, clean the front door or give it a fresh coat of paint and add a new front door mat to make the place more welcoming.

A Bedroom sanctuary

Executive tenants want a bedroom where they can escape the worries of life. You can make your bedroom/s feel like a sanctuary by adding a little luxury with fresh linen, puffed up pillows and extra cushions, a throw rug, a comfy chair and bedside lamps.

Storage is also important so it is worth considering having built-in robes installed, but keep the interior simple because if you include all the bells and whistles you won’t recoup the costs. Bedroom lighting is really important in creating atmosphere. Consider adding dimmer switches and bedside lamps.

Luxury in the bathroom

Executive tenants like to have a bit of luxury, but this doesn’t mean you need to spend a fortune on re-doing the bathroom, this can be achieved relatively economically.

Replace any old shower curtains, shower heads and fixtures, scrub away any mould and if need be put in a new vanity – these are relatively cheap but make a huge difference to the presentation of the bathroom.

Today luxury spa bathrooms are very popular, but we don’t all have this look. You can however add a little luxury to any bathroom. Fresh plump towels, some handmade soaps, plant or fresh flowers and some boutique bath products set out in your bathroom will give that feeling of luxury.

Kitchen makeover

The kitchen is the heart of the home and like bathrooms, executive tenants are happy to pay more for a home with a good kitchen.

A fresh coat of paint can work wonders in a drab kitchen, especially if cooking splatters have become a feature! Don’t forget your worn tiles – a little primer and paint can make a huge difference. Sell my home in Lumberton

They appreciate nice appliances, so if yours are looking a bit tired perhaps consider replacing the dishwasher, oven or fridge. You can purchase affordable 2nd hand appliances on eBay or keep an eye out for sales. If you don’t have a dishwasher it is worth adding one as this will automatically increase the appeal of your property. These aren’t ridiculously expensive and if you are handy you can install it yourself.

Swapping cabinet doors can give your kitchen a whole new look. If entirely new doors are outside your budget you can make a huge difference by simply replacing the handles of your cupboards and drawers.

Have a look at the kitchen benchtop – if it is damaged with stains and scratches, it would be worth replacing it with a cost effective option such as laminate. This will help freshen up the whole room and won’t cost a fortune.

Finally, if your kitchen floor is a little worse for wear, lift the lino and if you have them, polish the floorboards underneath – if they are in good enough condition – otherwise lay vinyl flooring, which is easy to clean. Alternatively, you may like to use tiles for a contemporary cool feeling.

Add off street parking

A car space can be a huge bonus especially if your rental is in a high density living area such as the inner city or in the beach side suburbs. In fact, the closer your place is to the city the more appeal the parking space will add to your property. Perhaps you could add a car port out of the front of the home or create a drive way in the front garden. This can cost a bit, however it’s worth talking to your accountant to find out what is tax deductible.

Add a laundry

Internal laundries are desired by many executive tenants and can certainly increase your investment property ROI. Perhaps you can make some space in a bathroom, the hall way or in the kitchen to fit a washer /dryer. Tenants will love the convenience of an internal laundry and happy to pay a bit more.

Outdoor entertaining space

An outdoor entertaining space is a great draw card for tenants and in Australia as we love being outside…plus it will add value to your property when you go to sell. You don’t need to spend a fortune, simply by adding a deck, tiling a courtyard, adding a gazebo and BBQ plus some outdoor furniture will be a big draw card for execs.