What To Know Before Renting Out Your Home
Many people are attracted to the opportunities they can get from investing in real estate. With higher housing prices and a more competitive market, becoming a landlord and building a property portfolio is a smart way of securing your future. If you are thinking about renting out your property there’s a lot to consider. Responsibilities include repairs and upgrades as well as anything you can do in making your property stand out.
1. Home improvements
Before listing your home it’s a wise idea to hire a property inspector to come and inspect any underlying issues which may need repairs or maintenance. Look at what can be fixed that will enhance both functionality and attractiveness to potential tenants. To bring your home into the modern era and make it a viable property to rent out, make sure that all plumbing, electrics, and structural fixtures are completely updated and repaired. A quick and efficient way of making your home look brand new is by giving it a spruce up with paint. When painting the walls and ceiling, always choose neutral colours. White is a safe choice since it not only opens up a small space and makes it appear more light it also gives a blank slate for future tenants. Check to see that all doors and windows are secure and consider investing in security screens to add to the safety of the property. You don’t want to bring tenants into an unsafe or vulnerable environment that can potentially cost them and yourself money and loss of valuables. As an investment, it’s also a great idea to look at window furnishings to modernise your home. These are great for rental properties as you can choose a functional yet low maintenance product that can be easily cleaned and looked after.
2. Curb appeal
First impressions mean everything. The first thing potential tenants see of your property is what it looks like from the street. So, be sure to keep the garden and lawns neat & tidy, rent a power washer to clean any ugly spills in the driveway, trim back any shrubs or low-hanging trees, repair the mailbox and paint the fence if necessary. Remember to clean out the gutters and to check the functionality of gates and fences. Curb appeal is one of many powerful ways of marketing your property that doesn’t have to cost much or use up a lot of your time.
3. Finding tenants
Finding reliable tenants for your property is crucial. The best place to start is by advertising your rental property online or in the local newspaper. Facebook has become a popular and effective way of marketing rental houses in recent times, so be sure to look at all avenues available to you. Once you’ve received applications the next thing to do is to perform a background check of each potential tenant. Run a full credit, criminal, and eviction report check along with verifying their income and employment. If this is your first time renting out your home, consider enlisting the help of a real estate agent to find your first tenant. Since the main source of income that you’ll receive as a landlord is through the rental income collected by the tenants, finding reliable and trustworthy tenants is one of the most important steps.
4. Determine how much rent to charge
You’ll need to know the current market value of your property before determining how much rent you should charge. Call up your local real estate agent and organize an interview to assess the current market and determine the rent amount for your property. You can also find your area’s estimated rental price on websites such as realestate.com.au and Domain. Setting the rent on your property has a huge impact on the overall success and viability of your investment, and with the right help it can maximise the income you can earn each week.
5. Writing a lease
Before renting out your home, you should be well-versed on how to write a lease agreement. A written lease will ensure both you and your tenant understand your rights and obligations and that you both comply to the fair housing and insurance laws in your area. Since each state and territory in Australia has its own regulatory requirements when it comes to leases, it’s best to contact your state’s consumer affairs or tenancy authority service. The lease will include the length of term agreement, the monthly or yearly rental payment, the procedures for collecting rent, as well as any obligations the tenant has while renting the property. The lease is signed by the property owner/landlord or the landlord’s agent as well as any tenants over the age of 18. You should consult with your real estate agent or real estate attorney prior to constructing the lease, especially if you are new to renting your property.