Are you considering purchasing an investment property? Do you already own one for the purpose of generating rental income? If so, read on to learn what to consider when leasing a property.

What to fix before leasing your property

If there’s any work that needs to be done to your property, it’s important to organize this before leasing it out to tenants. Enhancing your investment property will maximize the rental return and reduce issues that may arise down the track once the property is leased.

Take a look at the fixtures, fittings and appliances in your property and check for quality and durability in these features. Will they stand the test of time? Repairing and replacing features and appliances in your property could save you a lot of money in the long term.

Keeping on top of the cleanliness in high activity areas such as kitchens and bathrooms is extremely important. Removing mouldy grout, broken tiles, fixing leaking taps and broken kitchen appliances. Also replacing outdated fixtures such as taps, cupboard door handles, lights and so on.

You should also do a deep clean of the property, steam cleaning or replacing carpets, replacing flooring where needed, fixing any damage to walls or doors and cleaning curtains, blinds and shutters.

Getting started

If you’re looking to rent out your property then we highly recommend engaging a highly qualified property manager.

Do your research and find a property manager that has a good reputation and track record and can maximise the returns on your property. 

Management fees to consider

There is a variety of expenses a property owner will incur during the initial signing process with a property manager.

Fees to consider include costs to engage an agent, letting or leasing fee, management fees, marketing fees and any other costs.

Rental returns

The property manager you’ve engaged should forward rent to you within a reasonable timeframe. This will depend on whether the renter pays on time and how often the agent distributes payments from their trust account.

The property manager should explain the accounting timelines in writing to you upon engaging their services.

Repairs post tenancy

As a landlord/rental provider you can authorize your agent to arrange for urgent repairs up to a specified amount, this should be clarified in a contract.

You must give your tenants a written statement that explains whether the agent can arrange urgent repairs. If the agent is authorized to arrange repairs, the written statement to the renter should include the maximum amount the agent is authorized to spend on any repairs.