If you have purchased or are looking to purchase an investment property, you should keep a few necessary steps and considerations in mind. Here, we’ll outline some key questions to ask yourself before renting your property to new tenants.
What issues need to be fixed or updated?
Before renting your home to someone new, it’s important to address any issues with the property.
According to Jaime Pratt, Head of PM at VPM, 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”, she says. “Investing in new or reconditioned appliances could save you money in the long run.”
Cleanliness is also important, especially in high-use areas like bathrooms and kitchens. Mouldy grout, broken tiles, leaking taps, chipped paint, and outdated fittings should all be top priorities, and repairs should be addressed before renting your property. Replacing or cleaning carpets, repairing wall damage, and replacing floors, curtains, and blinds may also be necessary.
Should I hire a property manager?
When looking at what’s involved with managing your rental property, you’ll find it detailed, time-consuming and sometimes stressful. It’s highly recommended that you utilise the services of an experienced and qualified property manager. Property managers have experience in the 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 and more”, Jaime says. “So it’s important you do your research and partner with the one you feel will operate with your best interest at heart.”
What fees do I need to consider?
Several management fees apply when renting out your property. These include things like the cost of enlisting a property manager, letting or leasing fees, management fees, marketing fees, and other administrative expenses. You and your property manager must sign an exclusive leasing and management authority, which gives the agent rights to find a renter and manage your property exclusively.
What are the timelines for the rental payments?
Once a new renter has been found, your property manager will forward rent payments to you within a reasonable timeframe. “This timeline could depend on whether the renter pays on time and how often payments are distributed from their trust account”, Jaime explains. “It’s important your property manager outlines their accounting timelines in writing as part of their service to you.”
How do I organise repairs to be made?
If repairs are needed after a tenant has moved out, you can authorise your property manager to arrange urgent repairs up to a specified amount. This authority should be included in your contract.
However, if the renter is still living in your property, Jaime advises 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”, she says.
Have you got more questions? Our qualified Property Management team are ready to help you with anything else you want to know about managing your rental property. Touch base today.
