Is this the best advice for property owners who are thinking of renting out a property?

Is this the best advice for property owners who are thinking of renting out a property?

Are you renting out your property? There is no better time to start earning rental income than the present.
Australia’s rental crisis has accumulated over the decades and metastasised. Experts warn that the rise in investor activity and the surge in the number of overseas migrants who rent upon arrival will spiral rental demand further.
The increasing demand for rentals is excellent news for investment property owners. If you own a home and want to earn rental income to increase mortgage payments or grow your bank account balance, consider renting out your property and renting another.
Before rushing headfirst into the rental properties business, take a minute and know the ropes.
Here are essential tips for property owners who are looking to rent their first property

Define The Motive For Renting Out Your Property

What is your motivation for becoming a rental property owner? Most investors are looking to earn a profit off their rental income, and others see renting as an option for selling a property during a housing slump.
Clear goals for getting into the rental property business will help you reach the right decisions.
Besides, knowing the reason helps you overcome the emotional attachment you have to the property. If you just moved into the home, your family will undoubtedly have some emotional attachment to the property. Explaining that you have to rent out to earn rental income and clear the mortgage faster helps them deal with the emotional attachment.

Understand The Rental Property Owner’s Responsibilities

First-time rental property owners think their responsibility is to prepare and sign the tenancy agreement and wait for rental income dollars to flow into their bank account.
However, landlords have other obligations. It will help if you take the time to understand the general duties and services that every rental property owner must provide to the tenants.
Here is an outline of the essential obligations every rental property owner must be aware of before renting out their property.

  • Managing security deposit and prepaid rent
  • Signing lease agreement with the tenant
  • Ensure the rental unit is vacant on the specified move-in date
  • Keeping the rental property clean, safe and habitable.
  • Know current property value and calculate how much rent to ask
  • Keep a record of rental payments.
  • Dealing with the insurance company and paying the landlords insurance, and understanding the landlord’s insurance policies
  • Following the obligations set forth under the landlord-tenant law and other rental laws

Before renting out, you have to be ready and available to handle the property owner’s responsibilities.
Note that tenants may sue the property owner if they feel the landlord has failed to discharge either or all of the above obligations according to the applicable landlord-tenant law.

Prepare Rental Properties For Occupancy

The rental properties must meet the minimum standards before tenants move into the property.
Before throwing the property into the renters market, you must prepare it appropriately. Consider the use of renting out a property checklist to ensure well-presented property by :

  • Decluttering and removing all valuables
  • Clean walls
  • Functional HVAC units
  • Clean floors, ceiling, and windows
  • Fix any broken doors, sinks, and toilets
  • Check that all appliances are working
  • Clean the carpets and spray for pests

Hire a professional handyperson to fix broken furniture, doors, windows, or plumbing systems.

Professional Property Managers vs. DIY

Hiring property management and renting out your property privately are the two common considerations for new property owners.
DIY rentals management can be a daunting task, especially if you have multiple properties and other businesses to manage or another full-time job.
A property manager is an individual or an entity hired by a property owner to oversee the daily operations.
Therefore, the property managers offset the heavy burden of dealing with tenant matters, leaving the property owner free to attend to other important work.
The landlord will pay property management fees, often a percentage of the rental income. If you do not have enough time to deal with the tenants and other matters about rental property management, you may consider hiring a professional property manager.

Benefits of Hiring a Rental Property Manager

  • Marketing and advertising your rental property to potential tenants
  • Minimise the downtime of the property being unoccupied hence maximising profits and cash flow
  • Properties managers will screen tenants by looking at their rental history and make sure you find the right tenants
  • Ensures well-presented property and offers professional advice to make sure landlord observes legal obligations

Therefore, hiring a property manager is crucial to ensure a sound investment. The property managers are experienced real estate professionals and save property owners time and money. While DIY property management may seem to be a way to minimise property maintenance costs, the benefits of hiring a property manager outweigh the minor savings.
Understand Rental Properties Taxation and Rental Laws
Note that renting a property means you will have access to the new tax benefits you didn’t know about before. You need to keep your property updated with the relevant legislation and requirements. To get started, check out your state’s tenancy act.
Note that profits made on the sale of the rental property attract the capital gains tax.

Conclusion

Venturing into the rental properties market comes with different responsibilities. Keeping up with the landlord’s responsibilities can be overwhelming for first-time rental property owners. That is why new and existing investment property owners prefer hiring a property management agency to oversee the day-to-day activities.
Peace of mind property rentals is the local property manager providing professional rental property management. We offer professional advice to new and existing rental property owners.
Our experienced property manager will provide independent advice, ensure you keep up with legal responsibility, ensure you have high-quality tenants, and pay your rental income when or before the due date. Contact Peace of Mind property rentals today!

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