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Things to Consider When Becoming a Landlord

Things to Consider When Becoming a Landlord

29 Oct 2015 Professionals Real Estate 0 Comment

LandlordBeing a landlord in Australia comes with many responsibilities. It certainly has its benefits of being able to profit as an investment. This does not come without some work and commitment.

As a new landlord one of the first steps you may want to make is to hire a property manager. This way you can rely on their expertise in regards to managing the property, and it takes a lot of the stress and responsibility off of you.

It is true that a percentage of the rent that you are going to be able to collect is going to go to this expense, but in the long run it can certainly save you from a potential loss of income from your rental investment. These experts are able to take control of the necessary paperwork that comes with rental properties, as well as the maintenance and inspections. There is a great deal of work that needs to go into finding the right tenants, meeting with them, and filling out applications, all of which are property manager can deal with. You want to make sure that the individual or company that you choose for this responsibility has a good reputation and is experienced.

The next thing you want to do as a landlord is be aware of the legal issues that come with being a landlord in respect to your tenants. There are Australian laws that pertain to these which you must know. You are under the direction of the Residential Tenancy Act as it applies to each state as well as the Australian territories. One thing that is mandatory is that you must ensure that all of your rented property is safe which includes the appliances as well as the contents. This includes any potential health risks as well as looking after the common areas.

It is most important that you keep your documentation in order even if you don’t use a property manager. You need to have all of your contract or lease agreements organized, filed and assessable. You must also keep an open channel of communication for your tenants.

It is suggested that landlords obtain a bond up front from their tenants to protect against potential damage or loss of rent because of nonpayment. However the landlord themselves are not able to hold this bond. It has to be held by the state or territory tenancy authorities. The bond is only good against damage that is been done to the property and is not applicable to normal wear and tear of the premises.

You want to make sure that your property is well maintained and presents itself well so that you can draw the appropriate tenants. Also be sure that you carry through with checking out the references of any potential clients. You need to know the right process and the legislation concerning inspections once you have your tenants in place.

You might also want to think seriously about taking out landlord insurance which again creates a small cost but is well worth it. You will want to research this carefully before choosing the one that is best for you.

You have to be able to set the compatible rent for your units which mean that you must be on top of your research to know what the market rents are at the current time. You can rely on experts to assist you with this or do your own research. You need to know what claim back expenses you might be able to utilise such as on your water bills or capital improvements as well as counsel rates.

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