YohoStay 7 Things to Consider Before Renting Out Your Investment Property
Ready to rent out your investment property?
Do not wait, nationally, dwelling rents have increased to 9.4% in the year 2021, which is set to further increase throughout 2022. So, rent and make a profit off your investment property that you always dreamed of. Nevertheless, it is not as simple as just putting a “For Lease” sign in front of your property. Here is our list of 7 things you should consider before renting your house.
1. Attend Urgent Repairs
Complete urgent repairs immediately, non-urgent repairs can be undertaken within 14 days of the tenant’s request. Anything on this list is defined as an urgent repair:
- burst water service
- blocked or broken toilet system
- serious roof leak
- gas leak
- dangerous electrical fault
- flooding or serious flood damage
- serious storm or fire damage
- an essential service or appliance for water, cooking, heating, or laundering is not working
- the gas, electricity or water supply is not working
- a cooling appliance or service provided by the rental provider is not working
- a safety-related device, such as a smoke alarm or pool fence, is not working
- an appliance, fitting or fixture that is not working and causes a lot of water to be wasted
- any fault or damage in the property that makes it unsafe or insecure, including pests, moulds or damp caused by or related to the building structure
- a serious problem with a lift or staircase
2. Deep Clean the Entire Property
You want to let your rental property as quickly as possible and get the good tenants. Present your property in the best condition and set the high standards for the tenants. Before you rent out your property give it a good spring clean and make sure it’s sparkling including:
- carpets
- curtains and blinds
- flyscreens
- windows
- garbage bins
- garage
- gutters
- roof
3. Ensure that you meet all the minimum standards and regulations
The minimum standards apply to rental agreements that started after 29 March 2021. The minimum standards are divided into different categories, make sure your rental property meet the standards for each category.
Minimum Standards and Regulation - Victoria
4. Update landlord’s insurance
As a landlord you will need specific landlord insurance, in addition to your standard home insurance. You will need a policy that covers you for things such as tenant damage and rental default, which general home and contents insurance won’t.
5. Understand Tax and Legal Matters
As an investor, you have certain tax benefits in comparison to the owner occupiers. This includes property depreciation, where you can claim deductions for wear and tear to the property and its contents over time.
Further, you conduct the rental process in a legal manner. This includes everything from the tenancy agreement to inspections, rent collection and terminations. It’s a good practice to familiarise yourself with the Residential Tenancy Act.
6. Decide whether to Self-Manage or Hire an Agent
Whether opting for self-manage or hire an agent, both approaches have their benefits and cons. You can have a peace of mind by letting someone professional to manage your investment property however, you can save some money by self-managing. Choose what is the best fits for you and your family.
7. Screen your Tenants Carefully
It is important to get the right tenants for your investment. It is a good practice to do a background check using the tenant database check such as the National Tenancy Database and/or TICA. This is the easiest way to select a dependable and trustworthy tenant. You need to know if someone has been evicted before, if he’s not telling you about any court records and if he can afford what you are charging for rent. Thumb rule is that the tenant’s monthly income should be at least three times the amount of rent.
You can use YohoStay rental applications portal that has all the checks inbuilt!
Nagendra Yadav
Founder and CEO - YohoStay