1. When letting your investment property it’s important to secure a lease that will not only maximise the return but also
underpin the security of your investment. There are essentially three elements of making a good lease.
Always number one on any list, is quality. In this age of short attention spans (are you In theory all parties (except for the tenant)
Everything will fall into place once the still reading?) finding someone willing to want maximum dollar for the asset. This is
quality of something (in this case a tenant) is lease a property for 12-months or more is a eminently achievable in markets with very
established. god-send. low vacancy rates where there is active
competition for the property between
To ensure a good tenant is found and A tenant that suggests a lease period of
prospective tenants.
subsequently selected, it’s critical for 12-months or more should be considered
your property manager to thoroughly over anyone else. Rent flexibility is common in markets where
check references before passing on the demand for rental properties is lower but
Longer term tenants make for a solid lease,
final selection duties to yourself. the key to maximising the yield lies in
as much of the wear and tear on a property
ensuring regular rent reviews with minimum
Written references are fast becoming a comes during the process of moving in and
escalation clauses.
requirement for this process and you should out. You’ll also avoid the changeover costs
consider those applicants above all else, it of new tenancies like the letting fee, Offering the property in a cosmetically
proves these applicants are above all else, advertising costs, lease preparation fees attractive fashion is also important in
organised and considerate of not only a and the loss of rent that can occur between ensuring top dollar for rent.
property managers time, but yours as well. the end date of the old tenant and the start
If, in the case of the prospective tenants date of the new one. If your concerned Considering each of the three above
being young or void of a rental history, a co- about achieving market-rate rent at all elements before the letting process
signature (like a parent) adds to the security times, get your property manager to work begins should ensure a positive outcome.
of the lease. 6-monthly rental increases into the tenancy
agreement.

2. This month we met landlord
Kate* to find out whether
she has had the experience
of a long term tenant and if
so did she find this to be a
positive investment
strategy.
How long has your longest tenancy in Did your property manager suggest to
occupation been? 6 years you that you could include a rent
Was the entire period a fixed term? No, increase in a fixed term agreement and
it initially commenced as a 12 month did you consider this? Actually it was
lease and then it ran as periodic for a not until the property manager changed
couple of years. The tenants requested a that this was brought to my attention.
fixed term period of six months Once I knew this I did consider it but the
somewhere in the middle and when that tenants would not agree to a fixed term.
ran out they continued on month to For me, they had been there a long time
month until they vacated after six years. and proved to be good tenants so I was
happy not to push for this.
Did you consider in this time that you
You go in through one hole, you come could request the tenants to commit to Now that I am clearer about my
out through three holes. Once you’re a fixed term or did you attempt to investment strategy and I know I will
inside you’re ready to go outside, but negotiate this? I did consider it but hold onto this property, I will always try
once you’re outside you’re still
flexibility for rent increases or possible for fixed terms and include rent
inside. What is it? (answer at the
sale of the property were important to increases to ensure I don’t fall behind
bottom of the page)
me during this time. I always wanted to the market with the rent.
be able to keep my options open.
*Not her real name
If you haven’t already, it’s time to put
a dishwasher in your investment
property. A recent study by Australian
market research agency Colmar
Brunton found that washing dishes by
hand uses up to five times more water
DID YOU KNOW? The expression to and 60% more energy when compared
‘knuckle down’ originated from playing to using a 4 star dishwasher for the
marbles due to the fact that players used same quantity of dishes.
to put their knuckles to the ground for
their best shots.
Expresso brought to you by LJ Gilland Real Estate on behalf of Apmasphere; nb whilst every effort is made
to ensure the completeness & accuracy of the above, no guarantee is undertaken.
http://www.ljgrealestate.com.au; linda@ljgrealestate.com.au