Before renting out your property, consider these 5 elements first
As a new or existing property investor, did you know that there are 5 key elements that you need to consider before renting out your property.
If you do your research and employ an experienced professional this can go a long way towards a smooth transition and ensuring your property complies with legislation.
Lets quickly go through them
1.Does your property comply with relevant legislation changes? For example – Smoke alarms, pool compliance, electrical/plumbing requirements?
Not complying with the ever changing legislation requirements could result in litigation cases, especially your tenants life is lost or badly injured.
2.How does my property appeal to prospective tenants?
There’s a saying you don’t get a second chance to make a first impression – your properties presentation attracts the appropriate tenant! Ensure cleanliness, light and let your property breath. Ensure gardens are not overgrown, shrubs are trimmed back from the property and consider professional photography, so it stands out!
3.What do I do when a potential tenant is found
Getting to the application stage is only the beginning! Anyone can look good for an interview or on paper. Diligent checking of all references, including all occupants over the age of 18 being on tenancy agreements. Employment checks, are they listed on a bad tenant databases, doing an affordability analysis, check previous rental and credit history etc. Why are they moving from their previous home?
4. How long should my initial lease period be?
Assuming the property is purely for investment, I believe for the right tenant – minimum of 12 months. The time of the lease ending is critical eg. You don’t want the lease ending just before Christmas as you may have an extended vacancy period. Some agents may suggest as a trial offer a shorter lease period initially… In my experience, this only happens if the applicant is questionable or perhaps doesn’t have adequate references.
5. Are you adequately insured, including the appropriate landlord insurance?
In the recent NSW storm there were hundreds of thousands claims from, roof damage, fixtures and fittings damage – to rent loss. Also, the best tenant in the world can have a change in circumstances resulting in damages or non-payment of rent – the right landlord insurance can help limit the financial impact including any accidental or malicious damage.
There you have it folks. Get these 5 things right and your experience in property investment will be alot more enjoyable.
Or if time is against you, give us a call to discuss your property. Our expert team are only too happy to help you.