Property ownership remains a huge accomplishment among Australian residents. For many, buying a house is a means to create a long-term home for their families. Other homeowners are keen to rent their properties out and earn an extra income.
If you’re planning to rent out your property, it’s always recommended to use services like the leasing agent Langwarrin homeowners value so much. That’s how you optimize profits and decrease stress levels! And here’s more you should know.
A Few Tips First-Time Landlords Should Consider
Being a first time landlord can be both exciting and challenging. With the Australian Bureau of Statistics showing that an average of 31% of households currently rent their home, you’ll have to be top of your game to secure the best renters.
How does one go about ensuring that you don’t end up with a property you can’t rent out? Moreover, how to avoid ending up with nightmare tenants? Our leasing consultants have shared a list of the most significant factors to consider as you dive into the role of landlord.
1. Leasing Agents are Friends Not Foe
It’s not uncommon for first time landlords to opt to rent out their properties privately in an attempt to save the costs associated with a leasing agent. After all, what could go wrong? The reality is that many property owners don’t have the legal expertise to draw up contracts or even enforce them.
While you may think you’re going to end up with perfect tenants who respect your property as their own, the reality is often far from your expectation. A leasing agent will handle the entire process that includes drawing up and renewing leasing contracts and ensuring that payments are received on time. They can also check that your asset stays in good condition.
This ensure that dealing with your tenant doesn’t become a full-time job!
2. Review Your Approach to The Pet-Friendly Issue
This is an issue that Australian homeowners are divided on. Non-pet people may not want pets in their properties, while pet people argue that their fur kids also need somewhere to live. If you consider that a 2022 study showed that 69% of Australian households own a pet of some kind, it may be time for you give some attention to this issue.
There are pros and cons here. For one thing, you can hope that the individual will prevent their pets from causing damage to the property. Before you vote against the idea entirely, consider these factors:
- Much higher demand: There is currently an increased demand for pet-friendly housing which means your pet-friendly property is less likely to be empty for too long between tenants.
- Longer lease periods: Since pet owners know how difficult it is to find pet-friendly housing, they are more likely to stay in a property longer. This ensures you have a constant flow of income, without the routine hassle of finding a new tenant.
- Damage compensation: Leases can be amended to include specific clauses to compensate for any damages caused by pet ownership. You can also limit the amount and type of pets in an attempt to minimize damage.
3. Insist on Strict and Comprehensive Tenant Checks
Never assume that all tenants are going to be those dream renters that you never hear from, always pay on time and cause zero damage to your property. Lease agents spend a considerable amount of effort highlighting regulations to new tenants.
One way to reduce the risk of getting stuck with a bad tenant is to insist on thorough tenancy checks. This involves checking their rental history by speaking to previous tenants or rental agencies. Ask questions such as:
- Was rent paid on time?
- Were there any major complaints about noise and interference with neighbors?
- Did they leave the house or property in the same condition as when they moved in?
- Was the notice period adhered to?
This will give you a better understanding of the person who has applied to rent your property. Sticking to this criteria will help you choose the best tenant, especially if you have received several requests at once.
4. Read Up On Rental Law
Whether you’re using a leasing agent or not, it’s a good idea to brush up on the basic leasing laws. This will give you an idea of what you can expect from issues that may arise from non-payment, evictions, property damages and contracts.
The Consumer Affairs website is an excellent place to get a detailed breakdown of the rights that landlords and tenants have in respect of property rental. You should also request a copy of the standard lease agreement from your leasing agent before you start the process. It’s important to be a fair and approachable landlord if you want to be successful.
Final Thoughts
Property rental can be remarkably lucrative if you make a point of choosing the best tenants for your space. Your leasing agent will absorb the bulk of the issues and deal with minor queries allowing you to reap the benefits of your new investment!
In conclusion, venturing into property rental as a first-time landlord can be both exciting and daunting. To navigate this journey successfully, remember these key tips:
- Utilize leasing agents for their expertise in managing rental properties, saving you time and stress.
- Consider allowing pets in your rental property to tap into a larger market and potentially secure longer lease periods.
- Conduct thorough tenant checks to minimize the risk of problematic renters and ensure a smooth rental experience.
- Educate yourself on rental laws to understand your rights and obligations as a landlord.
By following these tips, you can maximize the profitability of your investment while minimizing potential headaches.
