If you have purchased or are looking to purchase an investment property for rental income, there are important steps and considerations to keep in mind. In this article, we will outline some key questions to ask yourself before renting out your property.
1. Are there any issues that need fixing or updating?
Before renting your home to someone new, it is important to address any issues with the property. What you’re willing to live with might become dealbreakers for new renters. Common problem areas in established properties include fixtures, fittings, and appliances that may not be durable or of good quality. Investing in new or reconditioned appliances could save you money in the long run. Additionally, cleanliness is important, especially in high-use areas like bathrooms and kitchens. Mouldy grout, broken tiles, leaking taps, chipped paint, and outdated fittings should all be addressed before renting out your property. It may also be necessary to replace or clean carpets, repair wall damage, and amend or replace floors, curtains, and blinds.
2. How do I get started?
When it comes to managing your rental property, it is strongly recommended that you enlist the services of an experienced and qualified property manager. Property managers have the experience in tenancy laws in your state and will know how to get the best possible outcome for your investment property. A trusted property manager is worth their commission so it’s important you do your research and work with the one you feel will work to have your best interest at heart.
3. What are the fees that I need to consider?
There are several management fees to consider when renting out your property, including the cost of enlisting a property manager, letting or leasing fees, management fees, marketing fees, and other administrative costs. You and your property manager will need to sign an exclusive leasing and management authority, which gives the agent exclusive rights to find a renter and manage your property.
4. Have I discussed the timeline for the rent payments with my agent?
Once a new renter has been found, your property manager will forward rent payments to you within a reasonable timeframe. This timeline may depend on whether the renter pays on time and how often payments are distributed from their trust account. It is important for your property manager to explain their accounting timelines in writing as part of their service to you.
5. What are the repairs needed after a renter has moved out?
In the event that repairs are needed after a tenant has moved out, you can authorise your property manager to arrange for urgent repairs up to a specified amount. This authority should be included in your contract, and if the renter is still living in your property, you must also provide them with a written statement that explains whether or not the property manager can arrange for urgent repairs. If repairs are authorised, the statement should include the maximum amount that the property manager is allowed to spend on repairs.
By keeping these considerations in mind, you can ensure a successful and profitable rental property investment. Let’s explore how we can assist you with managing your rental property and get in touch with our team today.