Do you ever think about renting out your property? It’s time for you too! The rates in Australian rentals are skyrocketing, which is great news for homebuyers everywhere.
You should consider several factors when renting out your first property – especially if you have never been a landlord. Using our guide for renting out your property, you’ll be able to confidently enter the Australian rental market.
If you own property that isn’t being used by your family, you might be tempted to rent it out. This can be a great way to bring in extra income, and you may even find yourself feeling good about providing others with an affordable place to live. Before you rent out your property, though, there are several tips you should consider to ensure your experience goes smoothly and safely.
Make sure your property is in good condition and ready to rent out
It’s no secret that Sydney is a popular place to live. More and more people flock here every day, looking for new opportunities and a better life. With this increase in population, it’s no surprise that there is also an increase in demand for rental properties. Yet with so many houses on offer, what sets your property apart from all the rest? To stand out from the crowd, it’s important to keep up with your maintenance and preparation.
- Installing an in-working-order energy-efficient heater.
- Checking windows to make sure they are lockable and have adequate ventilation.
- Make sure the property has no mold. It’s often best to call in a professional.
- If you haven’t already, the next thing you will want to do is to install the phone and Internet. Landlords often request that they be able to access the National Broadband Network, so if you haven’t yet, the time to do that would be now.
- Making sure there is enough ventilation throughout the property, with a special focus on the kitchen, bathroom, and laundry.
- Upgrading the home’s locks to more secure deadbolts.
- Ensuring there are functioning bathrooms, toilets, kitchens, and laundries for tenants to use.
- Protecting your property from the weather and making sure the construction is sturdy.
- Double-check to see if power sources comply with Australian standards.
By taking the time now to work on projects, you will be saving time later because it’s easier to do renovations and repairs when you have tenants living on the property.
Screen your tenants
Screening your tenants is a crucial part of renting out your property. While it can be time-consuming, it’s worth it in the end because you’ll have a better idea of who you’re letting into your space and can feel more confident about their ability to pay rent on time.
Screening tenants includes checking their credit score, how many people will be living at the property, how long they’ve lived at their current residence if they’ve ever been evicted, and much more.
Renting out your property can be a safe investment, but that’s only if you take care of things ahead of time. By performing a thorough tenant screening, you’ll be less likely to run into problems with your property later on down the road.
Know what you’re going to be responsible for as a landlord
As a landlord, you’ll have the responsibility of ensuring that your property is habitable and safe for tenants. You’ll also be responsible for maintenance, repairs, and any other problems that come up.
- In addition to paying the annual rates, the property owner must pay other fees to the city.
- If entering the property for any reason, 24 hours notice is required.
- Making repairs to the property (urgent repairs should be carried out immediately; non-urgent repairs can be carried out within 14 days).
- If rent is overdue by more than 14 days, a notice to vacate is issued.
- Preventing fires by maintaining smoke detectors and gas appliances, and fencing off pools.
For any specifics on what is or is not permissible when it comes to renting out a property, check your state or territory’s laws for more information.
Know the tax and legal aspects of your business
When you are moving from a home occupier to investor status, there are several taxes and legal obligations that you’ll have to deal with.
When you rent out your property, you are allowed access to new tax benefits— for example, wear and tear or damages you paid for during the year can be deducted from the property value and saved. If you need help, I recommend hiring an accountant who understands how to manage the depreciation rates in tax time.
Furthermore, you need to maintain compliance with any legislation or regulation relevant to your rental properties. For an overview, refer to your state or territory’s Tenancy Act. With our team, you’ll get all your paperwork and contracts together, as well as our guidance to assist with your property.
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At Sydney Property Realtors, we’ve got all the resources you need to support your journey into becoming a landlord. We don’t deliver nasty financial shocks when you list with us!