Professionals Real Estate 
One of the most important areas that first home investors overlook when buying a new rental property is to make sure that it is properly maintained according to Shane Kempton, CEO of Professionals Real Estate Group
Mr Kempton said that with the median price of a home in Perth at $540,000, ensuring that rental homes are properly maintained is now a critical issue for property investors especially during a time of rising vacancy rates.
“The rental vacancy rate in Perth has risen to 4% over the past year and with nearly 6,000 homes now vacant, tenants will want to live in properties that are not only affordable but well maintained. With the start of the new financial year, many first time investors will buy investment properties without fully appreciating that it is an asset that needs to be well maintained both to achieve a high return and also selling price. A poorly maintained property can reduce the selling price of your investment property by several thousands of dollars in today’s real estate market and also mean that you also lose hundreds of dollars each month in potential rent. Professionals are finding that former rental properties that have been poorly maintained take much longer too sell and can be penalized in price because property buyers are now in a stronger negotiating position due to a large supply of properties for sale.”
“When someone buys their first investment property, their key focus is finding a suitable tenant for the property. Once they have found a suitable tenant, most landlords tend to undertake irregular property inspections during the time of the lease and some landlords do not even undertake a property inspection. Property inspections of a rental property is one of the most overlooked areas by private landlords because many do not have the time to undertake a thorough property inspection or just trust the tenant to look after the property. A thorough property inspection every three months ensures that the property is maintained to the same standard as when the property was first leased to the tenant.”
The inspection report will also give the landlord a better insight into how the tenant is looking after the rental property.
“Regular property inspections also make sure that the tenant knows that they have to maintain the property in a good condition and advise the owner of any maintenance issues that need addressed. For example, a leaking tap in a kitchen can cause major damage to cupboards if the issue is not corrected at any early stage. Alternatively, a broken paving stone that is not promptly repaired could cause someone to slip and result in personal injury to the tenant which may have legal ramifications for the landlord. Another example is gardens. If the leasing contract stipulates that the maintenance of the gardens are the responsibility of the tenant then a regular property inspection report will help ensure that this important area of the property is properly maintained. Landlords who do not maintain their property on a regular basis often find that it is more difficult to find a new tenant once the existing tenant leaves. This can prove very expensive for the landlord because their property can be vacant for several weeks and they often have to reduce the rent to find another tenant because the property is in poor condition. In addition, these landlords may achieve a much lower market price for their investment property if they have to sell the property. Alternatively, landlords who fail to maintain their property on a regular basis have to spend many thousands of dollars to bring the property back to an acceptable condition if they wish to achieve a pleasing selling price. However, properties that are well maintained, generally have lower vacancy rates, higher rents and can achieving a pleasing price if they are listed for sale.”
“Private landlords should consider using the services of a professional property management company to undertake regular property inspections. This service is tax deductible,” Mr Kempton said.
