During our everyday lives, we all need to interact with many businesses, some large and some small. As such, we will have invariably come across statements
such as “Our policy is . . .” and “In order to comply with our policy, you must . . .” From the point of view of the organisation you are dealing with,
this is good business practice. By pre-establishing a set of specific policies they ensure that all customers are treated equally, that there is a
standard response to commonly occurring situations, and the business is unlikely to be accused of breaking the law.
So when you operate your residential landlording business do you have a set of policies in place, or do you just wing it depending on the day and the mood?
Related article: The best piece of advice you will ever receive as a landlord
Even if you work as a solo landlord it is good practice to formalise and codify your policies. They could cover a range of activities, from your purchase
of properties through to the setting of rents, the selection and induction of tenants, how you handle the various problems that will invariably arise
during a tenancy, the termination of the tenancy, and how you decide to retain or dispose of a particular investment property.
As a landlord, I look at a property that is being offered for sale on the basis of its actual or potential cash flow. The property may be an ideal development
site, it might be a great renovate and flick deal, or it could be an amazing place for an owner to live in, but under my own investment policy I will
reject all such properties if they...
