Western Australia (WA) has emerged as a beacon for Eastern States investors, allured by the promise of a robust rental market, attractive yields, and affordable housing options. As you embark on this exciting investment journey, we have put together some invaluable tips to ensure your venture unfolds seamlessly.
1. Fees and Charges: Navigating the Unique Landscape
Investing in WA presents different fees and charges, with the state boasting some of the highest legislative requirements in the country. Expect variations in inspection frequencies and property condition reporting compared to the East, along with potentially higher fee structures. Understanding these nuances upfront ensures a smoother financial journey.
2. Additional Costs: Ensuring Compliance for Success
Regardless of your location, complying with legislative requirements for rental properties may involve initial costs. In WA, this could mean upgrading your property to meet security and blind cord standards. Requesting an electrical safety certificate during the offer process ensures compliance with smoke alarms and RCD regulations, giving you peace of mind.
3. Legislation: Embracing Differences and Staying Informed
Each state in Australia has its own residential tenancies legislation, and WA is no exception. Familiarize yourself with the Residential Tenancies Act 1987, recognizing differences in notice periods, rent increase timelines, and tenancy terminations. Stay informed about legislative changes, with the recent Residential Tenancies Amendment Bill expected to come into effect in 2024, introducing positive shifts like banning rent bidding and limiting rent increases to once a year.
4. Repairs and Maintenance: Proactive Measures for Property Care
Property maintenance is a shared responsibility, and being proactive can foster a positive relationship with tenants. Respond promptly to urgent repair requests, and consider giving your property manager pre-approval for minor maintenance up to a specified limit. This not only safeguards your property but also contributes to a hassle-free experience for all parties involved.
5. Broaden Your Lease Horizons: Adapting to Market Trends
With the current low vacancy rate and evolving market dynamics, consider embracing sharehouse arrangements and allowing pets. Adapting to these trends ensures your property appeals to a broader tenant pool, positioning you favourably in a changing market landscape.
6. Make Sure You Are Covered: Insuring Your Investment
Your property is a significant financial investment, and having the right insurance is crucial. Ensure your landlord insurance covers rent default, invest in building insurance (or check if it is covered by a strata complex), and consider separate contents insurance for furnished properties. Being adequately covered safeguards your investment against unforeseen circumstances.
7. Go Local with Your Property Manager: Expertise Matters
Engage the services of a local property manager to navigate the nuances of the WA market and legislation. While fees may differ, the expertise and convenience they bring are invaluable. Local property managers are well-versed in local regulations and undergo continuous professional development, offering peace of mind for long-distance investors.