Making the decision to rent your property out can be a daunting experience. Whether it is an investment property or a property you have lived in and vacated, you want to ensure that you protect both yourself and the property, whilst getting the best possible return.
sellmycastle.com.au has been connecting landlords and agents in a free online platform since 2007 and has drawn on our experience to provide you with the following guidelines...
1. Find the right Property Manager for your property using sellmycastle.com.au
The role of a Property Manager is not just to collect the rent. It is a comprehensive management service which may include the following services:
• Provide advice on rental value
• Advertise for tenants
• Screen tenants and lease the property
• Provide a Tenancy Agreement
• Collect and lodge the bond
• Collect the rent
• Compare and check property inventory
• Inspect the property
• Pay utility accounts
• Provide regular financial statements
• Attend court on your behalf in the case of dispute with tenants
• At the end of the tenancy, finalise bond and inventory with the tenant
This of course comes at a fee – sometimes up to 10% of the weekly rental figure, plus a letting fee for finding a tenant for your property.
A survey of investors by Woolcott Research found that two out of five self-managing landlords interviewed had experienced tenants defaulting on rent. It also found that landlords who used Property Managers to manage their relationships with tenants were likely to face fewer problems.
With over 4,000 agents Australia-wide registered to the service, sellmycastle.com.au provides a free, impartial and transparent online service that allows landlords to compare local property manager’s commission & fees to assist in selecting an agent.
It’s obligation free and quick and easy, so register now!
2. Appoint a Property Manager
When you do decide to hire a Property Manager, then the selection process is similar to an interview– where you are the boss!
Making sure to ask the right questions will help you to compare the different services offered by competing agencies, and will ensure you are informed about what their role is.
Our “Top 10 Questions to ask a Property Manager” booklet is a great way to document the key points during interviews.
3. Make sure you have Landlords Insurance
Making the decision to rent out your property brings with it a big financial risk. If you have previously called the property home, there is often an emotional attachment to the property as well.
No doubt, you have heard the many horror stories of ‘nightmare tenants’. Of course, not every tenant is a nightmare, but it pays to protect yourself and your asset in the event that something does go wrong.
If this is your first time renting your property, you may not know about Landlord insurance.
This is designed to cover the aspects of renting your property that building & contents insurance generally don’t allow for.
The common features covered in the insurance are:
• Malicious or intentional damage to the property by their tenant or their guests
• Theft of the tenant or their guests
• Loss of rent if the tenant defaults on their payment
• Liability, including for a claim against you by the tenant
• Legal expenses incurred in taking action against a tenant
It’s important to remember that not all landlord insurance policies are the same. Your Property Manager will have one that they recommend, or you can do your own research to find the right policy for you!
4. Speak to your accountant about tax issues
Renting out a property will most likely have tax implications for you. Make sure to advise your accountant of your intention and discuss the possibility of getting a depreciation schedule organised if you don’t already have one.
5. Work with your Property Manager to decide on the rent
You might have an idea of how much rent you would like to receive, based on what your ownership costs are.
Unfortunately, rents are determined by the local market and your Property Manager will be best suited to advise on this. Don’t just take their word for it though – you can do your own research on the online listings websites (such as realestate.com.au and domain.com.au) and search for similar suburbs and properties to your own to compare.
During your interview process with potential Property Manager’s, they should also be able to provide with you a list of their most recent successful rentals that are comparative to your property.
Always remember to be realistic about what you can obtain.
6. Decide on a marketing plan with your Property Manager
One of the most important ways your Property Manager can help you to rent your property, is by marketing it to prospective renters. Only real estate agents are permitted to list rental properties on the most popular online real estate portals – realestate.com.au and domain.com.au.
To ensure the best results, compare your property’s online listing with those of similar properties in the same area.
Here are four key factors to check:
• Has your agent included several good photos in the online advertisement?
• Did they have the property cleaned and the garden mowed before taking the photos?
• Is their written description in the advertising compelling?
• Are they properly screening applicants against a national tenancy database, and also checking credit, employment, references and criminal history?
7. Rent your property out!
Now that you have completed the above steps, you are ready to rent your property out, safe in the knowledge that you have made an informed choice in selecting your Property Manager.
Now that you know a little more about what’s required to rent your property out, why not start receiving FREE proposals from the Property Managers in your local area. Register Here
Some other articles you might find interesting are:
Top 10 Questions to ask when interviewing a Property Manager
What rent to charge
Request free agent proposals to rent your property right now!