Important Information For First Time Property Investors
- Monday, 10th Nov, 2014 by Super User
Have you just bought your first investment property and are about to lease it out, or perhaps you have been transferred interstate for work, and want to rent out your home while you are away. Whatever the reason, you are about to become part of a growing demographic in Australia – a property investor. To make this whole experience a pleasant and profitable one, there are a few things you need to know.
Before the property is advertised, set a rental figure that reflects the type of property, its location and that meets the market price for the area. First-time lessors often have inflated expectations of the rental value of their properties. While you don’t want to short-change yourself, you also don’t want the property to languish for months without earning any income.
Written Tenancy Agreements a Must
Make sure you have a written tenancy agreement in place setting out monthly rent arrangements, the timing of rent increases, dates of occupancy, deposit and bond arrangements, insurance details, frequency of inspections and damage reporting. If pets are allowed, these details should also be in the agreement. It must be signed by both parties and the bond lodged with the relevant state authority.
Tenants have the right to live in a safe environment, so it is up to you to ensure that your property has smoke detectors, secure locks on doors and windows, and sufficient keys for all signatories to the lease. The dwelling must meet all Australian building standards. It must also be maintained to these standards and any repairs needed must be done promptly to keep the integrity of your insurance policy.
Tenant Reference Checks Vital to Avoid Poor Choices
You should also conduct thorough reference and background checks on any prospective tenants and only deal with those who have a history of paying rent on time, and who treat the property and their neighbours with respect. Neglect any of these issues and you may find yourself on a current affairs program, trying to get the “tenants from hell” evicted.
Does this all seem too hard? It takes a lot of time, work and specialised knowledge of tenancy laws to manage your own rental property. Most rental owners have found that engaging a property management agency to look after their investments is by far the most cost effective way of keeping them tenanted.
Rental Property Management Needs Specialist Skills
At Focus Property Management this is our core business. Managing rental properties is not something we do as an aside to selling real estate. We are specialist property managers with trained and experienced people who know the legislation governing residential tenancies.
We can perform reference and background checks on tenants, prepare tenancy documents, arrange and attend inspections, provide inspection reports, manage rental receipts, arrange repairs and market your property to thousands of prospective tenants. The staff at Focus Property Management will look after every detail on your behalf. All you need to do is check your monthly statement and leave the rest up to us.
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