Becoming a landlord by renting your property means so much more than just sitting back and collecting rent. There are many obligations – many of them financial – that need to be considered for anyone who is thinking about leasing their home, especially over the long term. As well as having a property management service such as Templeton Property (check them out at this URL), take care of the day-to-day management of the home, there are many responsibilities that fall squarely on the shoulders of the landlord. Here’s what any landlord should consider before putting their home up for rent.
1. Understand Their Financial Responsibilities
Being a landlord means becoming liable for certain costs including upkeep of the property and emergency repairs, not to mention the yearly council rates. Landlords who are relying on rent to cover their mortgage payments should understand the ongoing costs that need to be met. It important they have the financial capacity to cover routine repairs, property management costs and the possibility that the property could remain vacant for certain periods where no rent will be collected. Should there be a shortfall, it may not be the most prudent financial outcome for the homeowner to rent their property.
2. Consider Adding Value to the Home for a Higher Rent
Landlords should always consider adding value to their rental home by making some initial investments before it goes onto the rental market. Air conditioning, new kitchen or bathrooms, or fresh carpets, light fittings and a new coat of paint are all ways that landlords can command a higher weekly rent. When considered carefully, over the long term these initial investments will pay for themselves – and then some!
3. Who will the property be marketed to?
When a property specifically appeals to a specific renting group, they are leased faster, and can command a higher weekly rent. Consider the major demographics living in the suburb where the home is located, and where possible make the home appealing to those specific groups. For example renters in the inner cities will appreciate off-street parking, students may appreciate Internet access included in the weekly rent, while families will appreciate fenced backyards. Consider how you can market your property to a specific renter group and make any changes. This can mean happier tenants who are willing to stay for the longer term.
4. Get Advice from the Professionals
Professionals in the financial and property industries will be able to provide specific advice about landlord can maximise their property investments. Property management services can help owners make wise property decisions including how to access rental tax concessions, ensure they get the best tenants, and draft the most suitable lease agreements.
5. Screen Tenants Carefully
Since renting any property involves a significant level of trust, it’s important any potential tenants are screened thoroughly before handing over the keys. The property manager may complete this task, however the landlord will determine final say. It is important landlords are aware of previous rental histories and investigate any previous rental breaches. Depending on the property type and the preferences of the landlord the definition of a ‘suitable’ tenant will differ.
Landlords should also be aware that they may need to bring their property up to certain building standards before their home is suitable to rent. This is an additional cost consideration that should be accounted for before those rent cheques can begin to roll in.