Becoming a landlord is more than advertising your property for lease and finding tenants. In Australia, just like in any other country, you need to make sure that investing in your property pays off in the end. Considering that the location of your property will play a significant role in the rent, you can also do some adjustments to get the best possible price and attract good tenants. Therefore, if you don’t have experience with this matter, here is a checklist for renting out your property to help guide you through the process.
Know the costs
It may seem that renting out your property will make you money, but actually, there are many costs to consider first. Namely, you need to take into account fixing up the place and repairing any damages, then property management, advertising, tax, and insurance. Basically, you need to calculate the costs before you start planning on what to spend the profit from renting it out. And once you return your initial investment, you will have fewer costs to cover and a bigger income.
Consider hiring a property manager
If you have enough time, you can manage your own property although it may be an emotionally challenging task. After all, this is your property and you may have problems with the way your tenants use it which in turn will create problems in your relations. By hiring a property manager, you will eliminate this and also bring in someone who knows the legal, financial and functional aspects of renting out.
A property manager can help you with selecting a suitable tenant, handle any disputes and prepare the necessary paperwork like tenancy agreements or repair request forms. They will also collect rent through sophisticated payment system and are familiar with the procedure for regular inspections. Also, they can help you with rent appraisal since they know the market conditions and will help you to be on top of the newest trends.
Think about insurance
Besides applying for standard home insurance, you may also need to consider one specifically designed for landlords. The insurance policy will cover things like damages made by the tenant which are not included in the general home insurance. Also, contents insurance is intended to cover loss or damages to your belongings, the tenants and in case something unexpected happens. Consult with your insurance agent about all the options and find the best policies that will protect you and your tenants.
Repair any damages to your property
Before you list your property, you need to make sure that it’s functional and safe to live in. Hire an electrician to examine the installations and upgrade the grid if necessary to avoid damage to appliances, injuries, and fire. Also, check if there are any leaks inside the house and repair them immediately by replacing the pipes, cleaning the gutters and fixing the roof.
Check the sealants on windows and doors to ensure that there is no draft and consequently problems with heating and cooling the property. Additionally, clean the HVAC system and check its performance to make sure that it is fully operational and safe to use. These tasks should be done by professionals and you can also leave it to the property manager to handle all the arrangements if you are too busy.
Do a small makeover
Once you’ve done the repairs, it’s time to pretty up the place and make it attractive for the rental market. However, even though you may want to invest less money into this mini makeover and even do most of it by yourself – don’t. You should even go all the way to hiring a potential painting company from Sydney and an interior designer to decorate the space in order to get the job done right and increase the property’s value. This way, you will get a quality makeover and therefore reach your desired tenant base.
Furnished or unfurnished property
You also need to decide whether you rent out a furnished or an empty property which will also affect the costs. Basically, in Australia, you can lease your property fully furnished and equipped, partly furnished, supply it only with white goods and unfurnished. You can offer to furnish the property as an option and not as the state of things, but that also means that you may end up with surplus furniture and appliances. So, consult with your property manager and interior designer on how to gain the most results with affordable investments.
Australia is a popular destination for business people and international students, but also the demand for affordable and quality housing is in high demand among domestic tenants. This is why you need to determine who you want for future tenants and how much you are prepared to invest in your property. Once you have all the perimeters, start working on your property to make it the most appealing to your desired tenants.