If you’re thinking about renting out your property for the first time, or if you’re on the lookout for new tenants for your existing investment home, here’s a few things you should take a moment to consider.
Should I Self Manage or Use a Property Manager?
It really depends on the time you have available. Self-managing a property can be a very time consuming exercise and most people decide to let an expert take care of things.
If the property is being rented out as an investment, the fees paid to a Property Manager are generally considered as a tax deduction, but speak to your accountant first.
Whatever your decision, it’s important that you, or your Property Manager (preferably both!) are familiar with:
If you do decide to use a Property Manager, try to speak with at least 3-4 within your local area to get a good comparison of their experience and fee structure before making a decision.
Increase your rental return
New carpet, a bit of a paint spruce up, and updating the light fittings can be inexpensive ways to update your property and increase the rent in your pocket.
Adding reverse cycle air conditioning, (particularly here in Perth) can also help your property stand out from the pack.
However, just make sure what you spend on your property is a worthwhile investment. It’s a good idea to speak with your Property Manager (if you decided to appoint one!) first.
What rent should I charge?
The rental price should be set at a level where you can attract and retain tenants. It’s a good idea to do some research on your local area online to see what similar properties are being leased for.
Compare the location, land size, number of bedrooms and bathrooms and overall condition of the comparison properties before setting your rental price.
If the number of enquiries or applications you receive is underwhelming, you’ll quickly know if you’ve priced it too high. If this does happen, it’s important to adjust the rent to suit market conditions, and avoid the property being vacant for long periods.
Change Your Locks
If you’ve had tenants previously, it’s a good idea to change the locks on the doors. This will help to keep the property secure and ensure the safety of your new tenants.
Plus, it’s easy to do yourself. You can pick up a new barrel and key from your local hardware store for around $20.
Get Landlords Insurance
Purchasing landlord’s insurance is vital. Whilst most people will be respectful and take care of the home, there’s always a chance things could be damaged.
Landlords Insurance will give you peace of mind, protect you from liability and may even cover instances where a tenant doesn’t pay the rent.
It’s important not to confuse this with renter’s contents insurance, as most policies won’t cover a tenant’s personal belongings.
Let there be light
Whilst it sounds simple, many people overlook the simple replacement of light bulbs or faulty fittings. You should also consider using energy-efficient bulbs, which reduce energy costs and don’t need to be replaced so frequently.
Don’t forget to give your light fittings a good wipe down and remove any cobwebs and dirt while you’re at it.
This will also help when it comes to photographing your property for rent. A nicely light room will always feel more inviting.
Whilst you can scrimp and save on several things around your investment home, photography isn’t one of them. A professional photographer is a must! For between $150-$200, a photographer will shoot your home and touch up the images, allowing you to advertise the home when it’s looking its best. And remember, the more people who view your home online, the more applications you’re likely to receive.
Blog posted: December 15, 2017
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