4 Ways to maximise your rent in a crisis
We have never seen anything like COVID-19 in our lives and it is easy to think about your returns on investment when faced with uncertainty. So, whether you've been a property investor for years, or just bought your first investment property over the last couple of years, there are a few things to remember when you maximise your investment property rental returns during a crisis such as this.
Assess your landlord insurance
Landlord insurance is something you never claim but you still want your investment property covered. You'll need to test your landlord policy in times of crisis. Gather details on how you are actually being secured and what you're eligible for.
You may want to contact the landlord insurance company to find out what action you're supposed to take if you're in a position to claim. Follow the insurance company's guidelines to ensure you can make the claim quickly and easily, if necessary.
When your tenants contact you asking for a reduction in rent, take a moment to consider their situation. It's important to understand that your tenants react from a position of fear, particularly if the crisis affects their income. That doesn't say, however, that you have to give the rent reduction automatically. Speak to the property manager and property insurance provider to get qualified advice on how to respond to this request and behave reasonably and with respect.
Talk directly to your lender
If you are financially impacted by this crisis, in your situations, speak to your bank about any loan support that might be available to you. During this process continue to remain calm and patient, because there are often delays in getting this information from your bank. Banks are being inundated with calls, emails and in-person applications during a turmoil like this, and response times will be much longer than normal.
Keep your property leased
If, during this period, your property has become vacant, talk to your property manager to get expert advice about how to attract a tenant in this market. Your property manager is likely to follow their local Real Estate Institute and regulatory bodies 'guidelines on best practises to take visitors around your property and maximise your rental income during a crisis.
Stay fact-based in a time of crisis, and concentrate on options for your investment. Implement the guidance from local authorities and keep in contact with your property manager to achieve the best outcomes for your investment property. Note, this material should not be regarded as legal advice, so ensure that correct advice is obtained before any financial or legal decisions are made.
For further information about real estate in this area, contact No Bull Real Estate, your most reliable and friendly real estate agents in Newcastle & Lake Macquarie. Buying, selling, leasing for residential, commercial, industrial property, contact your local expert to buy, sell or lease today on 49552624 or https://www.nobullrealestate.com.au