Once you have gone past the phase of letting go of all the emotions about your previous home and deciding whether renting is better than selling, you are on the right track to be the landlord you have been dreaming to be!
Working as a landlord is not always as easy as it seems. You need to collect rent, manage all the utility bills, repair all the necessary equipment in the property and the list goes on.
These issues become harder to manage when your property is leased to the wrong tenants. Finding quality tenants who take care and respect your home as you have expected from them is the key to minimising all the costs that may affect you in the long run.
You don’t want to rent your home where you lived for the past 10 years to someone who doesn’t take care of it like the way you do and end up with a $20,000 repair fee for the damage they have caused.
Afterall, the main reason you are renting it out is so that you can maximise your profit. It is always ideal to avoid any additional costs where you can.
Quality tenants may seem hard to come by and it is a time-consuming process to filter through all the applications if you do not have a strategy in place. Bear in mind that the longer you delay in acquiring a tenant, the more it affects your profit potential.
Here are some of the strategies that we suggest:
Present your property in its tip top shape!
A well-presented property does not just give you a chance to negotiate higher rent but allows your potential tenants to believe what they are paying is worth it. Consider changing the curtains, repaint the walls to freshen up the interiors and exterior, include ceiling fans and air conditioner or attend to any existing problems.
Have a detailed renter application form
This gives you insight as to who your renters are and their profession and rental history. Start by thinking about what the ideal renter looks like, how do they dress, what car they drive, what is their job and rental history, where have they lived, why are they moving and a reference. These are great questions to give you a good idea of the type of renters they are and you'll be able to track back to their current address to find an estimated rental fee they are currently paying.
This questionnaire makes the filtering process easier and you will be able to differentiate your applicants between potential quality tenants and potential nightmare tenants.
Abide to the Fair Housing Act
In Australia, it is the landlord’s responsibility to follow every detail of the Fair Housing Act.