Information for landlords

How to rent out your property

The Australian housing and rental market is booming, making it a prime time for Australians to become property investors and begin generating some lucrative cash flow from their investment properties. Unfortunately, there is a lack of quality information for landlords available. If you are a current landlord or interested in becoming one, then this guide will provide you with all of the necessary information that you will need in order to be as successful as possible.
Determining Price
The first step for landlords in renting out their investment properties is determining the rental prices that they will charge. In order to determine a competitive rental price, you will need to look at comparable rental listings in your area. There are many ways to go about doing this, but browsing classified ads will usually tell you all of the information that you will need to know when establishing a rental price.
Method of Renting
There are two basic ways to go about renting your properties. You can either go the traditional route or utilize a rental auction. Rental auctions have their own unique benefits and drawbacks, but they have become quite popular for Australian property investors. Additional information on rental auctions can easily be found at www.landlordscoice.com.au.
Advertising
It will be difficult to find tenants for your rental properties without proper advertising. You have to advertise your properties in order to attract potential clients. In addition to standard print classified ads, there are certain sites that will allow you to list your properties for free. You will also want to get customized “For Lease” or “For Rent” signs and put them in highly visible places on your property. You would be amazed at how many clients can be obtained from this tried and tested method.
Legal Documents
Many become property investors and landlords without the proper legal paperwork. However, it is vital that you have the necessary legal documents in place in order to protect your assets and abide by the regulating authorities. As a landlord, you will need a rental application, a residency tenant agreement, a property condition report, a copy of the renting code, and a bond application.
Showing Your Property
If your property is competitively priced, then you will likely not have to perform too many showings before finding an interested and qualified tenant. However, the property should be thoroughly cleaned and perhaps even well-staged with furniture in order to show potential tenants the possibilities of the space. Often, properly staged properties are able to demand higher rental rates, simply because they usually show better than vacant units. When showing your properties to potential tenants, take this time to interview them casually if they seem interested. Also, make sure that they leave with a rental application in hand.
Perform Background Checks
You will need to review all of the applications after collecting them from potential tenants and ensure that all of the necessary information has been included. You will then use this information to check the credit, personal, and rental references of prospective tenants and select the best one in a non-discriminatory manner.
Completing Tenancy
After selecting a tenant, you will need to take these next steps in completing the tenancy of your property. You will need to complete the Residential Tenancy Agreement and go over the terms of the lease with the tenant to ensure that they understand all of the rental conditions before signing the agreement. Whilst reading the tenancy agreement, you should provide the tenant with a copy of the state government instruction document.
Next, you will need to do a walk-through of the property on their move in day and have the tenant sign a property condition report. Lastly, a bond must be secured through a cheque made out to The Rental Board NSW. All parties will then be sent an “advice of lodgement” that includes the unique bond number. The bond will be held by the Rental Board and accumulate interest during the course of the tenancy.
For landlords, following these steps will help greatly in your property investment journey. Assuming that the proper steps have been taken, you should have no problems at all in finding a pool of qualified tenants that will provide you with a handsome monthly income.