7 Things to Consider When Renting Out Your Property
Whether you’re planning to upsize, downsize, travel, or relocate, renting out your property can be an attractive alternative to selling. As a landlord, you can supplement your income through rental earnings, and have peace of mind that your property is still your property, should you wish to make it your home again in the future. Many Australians rent out their properties, and while they often make it look easy, there are a few things you will need to consider to ensure that renting is an enjoyable experience for you.
Here are 7 important things to consider when renting out your property for the first time:
1. What you will do with your own things
Perhaps you have decided to move into a smaller home, or you’re taking some time out to travel and see the world. You may not be able to take all your possessions with you, so it’s important to think about what you will leave in the property, what you will take, and what you will do with the rest. Arranging for a secure storage unit is a good idea, giving you the option to keep items safe until you need them again.
2. Whether your home is ‘rentable’
You may love your home, but it’s worth taking a look at the property through the eyes of a potential renter. Is the bathroom desperately in need of a makeover? Could the kitchen walls do with the refresh? Before putting your home on the rental market, you may want to do a few quick renovations. Remember to renovate neutrally and for durability and longevity, rather than renovating for personal preference.
3. Who will be responsible for what
Renting your property for the first time can be exciting, but along with all the exciting parts, there are some not-so-exciting tasks that need doing. One of them is deciding who will be responsible for what. One of the most important things is to work out what utilities will be covered as part of the rental fee, and what won’t. Also think about who’s responsible for minor repairs, or for damages caused by tenants or pets. It can be useful to check out the usual mistakes of rental applications to know what should you expect from it since you will probably get more than one of them.
4. How you will find the right tenant
Wouldn’t it be nice if you could find the right tenant with the click of a finger? Well, sometimes it does happen that easily, and other times it can be a little harder. It often depends on the housing market in your area at the time. The good news is that there are ways that you can connect with quality tenants, like creating 3D floor plans and videos of your property that generate a strong pool of qualified leads.
5. Whether you have the right insurance
Contrary to popular belief, your standard homeowners’ insurance won’t cut it in the rental world. When you rent out your property, you become a landlord, which means you will need to have valid landlord’s insurance to ensure the property is financially protected. Landlord’s insurance doesn’t cover a tenant’s possessions, so you will also want to make sure they know it’s their responsibility to have insurance, too.
6. How you will manage your property
Even though you may not be living in it, the property is ultimately still your responsibility. Perhaps a major repair needs doing, or there’s an emergency. If you’re moving into a new home nearby, you may be able to manage these things yourself, but if you’re relocating or travelling, it can become more tricky. Most people opt to work with a property management company who handles all this on your behalf.
7. How reliant you are on rental income
The good news is that there are lots of people out there searching for the right rental property. However, as the old saying goes, ‘don’t put all your eggs in one basket’. Remember that there can sometimes be gaps between one tenant moving out and another moving in, so always consider how reliant you will be on regular rental income, and ensure that you can stay afloat during the highs and lows in rental demand.
It Gets Easier
When you renting your property for the first time, it might feel a little bit like trying to do a jigsaw puzzle; it’s like you’re trying to bring all the pieces together so that they fit perfectly. Although it might feel challenging, keep in mind that at No Agent Property we offer a professional support to all property landlords. We’ve been supporting property owners and landlords since 1999 and over that period of time we have helped thousands of people selling and renting their properties privately.
About the author
Kirsty Morbidelliis the U-Store-It Facility Development Manager whose years of experience in the industry allow her to develop and design customised and tailored self-storage training platforms that U-Store-it’s professional storage consultants use to better understand their clients’ needs before providing solutions to suit residential, business and corporate customer’s self-storage needs.