So, you’re upgrading from your first apartment. Great news and perhaps you’ve chosen to retain your apartment as a rental property to help build your wealth. This is a wise decision and many apartment owners in inner Sydney have done the same successfully.
Not only will the rent that you receive give you an additional income stream, but you’ll also benefit from the capital growth that your apartment will achieve over time.
However, first-time landlords have many considerations to take into account when it comes to renting out their apartment. You need to think about the legal documents that need to be drawn up as well as how you’ll collect the rent and how you’re going to manage any maintenance requirements along the way.
Here’s a rundown of some of the basics you need to manage as a new landlord.
1. Starting a tenancy in NSW
Before you can rent out your apartment, you must make sure that the property meets all the safety requirements and is in good condition; that is, it must be habitable.
Then there are all the legal documents that need to be drawn up. These include the rental agreement and the bond registry form. As a landlord, you must also ensure you create a condition report before the tenant moves in, and you may need to have extra keys cut.
Of course, once your apartment is ready to rent, you’ll need to advertise for a tenant, go through the applications and then select the perfect candidate. It’s always wise to check references and their finances, too, to make sure your tenant is in a position to pay the rent you’re asking and cover it should they have a minor emergency. That means that your prospective tenants need to show evidence of money in the bank.
All this work and follow-up is precisely why most new landlords engage the services of a property manager. It’s all in the details.
2. During a tenancy
Once you have a tenant, you’ll need to consider the maintenance requirements that you are responsible for as the landlord. Having a property manager on board who can look after this for you is vitally important, especially if you’ve moved out of the area and live some distance away. Should an emergency arise, like a broken toilet, a major leak or similar, by law these types of issues must be dealt with as close to immediately as possible. It’s prudent to have a property manager on hand who has access to trades and professional services and can get the problem sorted quickly.
There are also legal requirements in place that state whether you can visit the property while it’s being rented and how much notice you need to give your tenants.
It’s important that you educate yourself about all of these legal requirements so that you keep your tenants happy. A happy and well-looked after tenant will always pay their rent on time and will look after your property like it’s their own.
3. Ending a tenancy
Ending a tenancy can be just as complicated as setting one up if you don’t understand the legal requirements. You have to consider how much notice needs to be given, both by you and the tenant.
There’s also an exit condition report that has to be filled out and then there’s the final inspection to determine whether the tenant gets their full bond back. In addition, if your tenant has taken good care of your property and always paid their rent on time, you want to make sure that you thank them for looking after your apartment and give them a good reference.
4. Should you use a property manager for your inner-Sydney rental?
If you’re a first-time landlord and you want to rent out your inner-Sydney apartment, enlisting the services of a property manager is definitely a good idea. This will save you a lot of time and headaches as you don’t have to immerse yourself in the rental laws, the required documentation and the regular upkeep of the property.
At a reasonable cost, your property manager can take the burden of property management from your shoulders. This means that you can enjoy the benefits of the extra income and the capital growth of the property without management eating into your precious leisure time.
Can we help you manage your inner-Sydney property?
If you’ve decided to upgrade from your first apartment and want to rent it out, there are many things that you need to know about being a new landlord. Thankfully, a professional property manager can lead you through this minefield and take all the pressures of being a landlord off your shoulders.
At Vogue Property, we manage properties across much of inner Sydney. We have systems and processes in place to streamline property management so you can feel confident your property will be well cared for. Call us today.
Free Property Management Advice, talk to an expert now!
Are you a landlord looking for advice? Do you have questions about these uncertain times? Changes to the rental market or anything specific to Property Management? Book a one-on-one, obligation-free, consultation with Jaime Pratt, Head of Property Management at Vogue Property Managers.
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With over 20 years of property management experience, Jaime will openly provide advice on improving rental return, enhancing your property, attracting quality tenants and finding ways to alleviate your expenses.