Renting out a home is best handled through a professional real estate company that specialises in rentals. A good agent will be able to advise you on price point, landlord obligations and any Federal or State government legislation that needs to be complied with. A rental agent can also advertise and vet potential tenants as well as take care of all the management of the property, including collection of rent, inventory and regular inspections to ensure the property is being well kept. A good agent means you, as the owner, can relax knowing your property is being carefully watched over.
If you're planning to rent out a property the best place to start is with the real estate listing. Regardless of whether you use a professional real estate agent, brokerage or list the property yourself, you need to create an appealing listing to attract tenants.
Basic items which need to be listed are:
Photos help to elevate your listing and make it stand out from the crowd, and if you're listing online remember to use a wide variety to showcase different angles.
As a landlord you have legal responsibilities. The basics are outlined below:
1. Provide habitable condition
It means the landlord is responsible for repairs and maintenance to ensure the rental property is kept in habitable condition. A habitable property is defined as one that has adequate heating, water, electricity, cleanliness and structural integrity.
2. Notice about entry
Whilst the landlord can enter a rental property without notice for emergency repairs, at all other times most states require landlords to provide tenants at least 24 to 48 hours notice of an intention toenter the property. This is usually used for inspections and to show prospective tenants or buyers the property.
3. Observe state and local laws
This is applicable to both the landlord and the tenant alike.
Background checks are highly recommended and it is folly not to do one on a prospective tenant. At the very least you should conduct a criminal history check and anyone who fails should be rejected as a tenant. A more thorough check can include job history and a look at the prospective tenant's finances as you need to know they are able to pay the rent in a timely manner.
Services such asIntelius and InstantCheckMate.com make conducting a background check easy as you can do it online from the comfort of your own office.
This is perfect for a holiday home that you might only be utilizing a part of the year. There are specialised real estate services catering exclusively to the short-term rental market and they even take care of cleaning and maintenance which makes it a trouble free arrangement for all parties.
Long term is the most common type of rental. It is classified as a year or more and requires the signing of a lease between both parties. As with a short term rental there are specialist real estate agents dealing with long term rentals and this includes them vetting prospective tenants and conducting regular property inspections for the landlords peace of mind.
A contract is a legally binding agreement designed to protect both the tenant and the landlord. Care needs to be taken to spell out all the liabilities for which the tenant and landlord are responsible.
Typically included clauses are the rent amount, date for rent payment, any bond payments plus and any clauses about eviction and notification of entry. There are usually also clauses pertaining to pets and body corporate requirements.
Property owners rent out their homes for a variety of reasons with the most common being the generation of additional income from either a holiday home or as a property investment.
Using property investment as a career: An investor with funds buys homes in major hubs and cities with the specific purpose of renting out to create and income. Astute investors buy and sell as the market fluctuates thus ensuring they gain the best return on investment and appropriate tax concessions.
As an additional income stream: Real estateprovides alucrative investment for those in full time careers, especially when investing in booming neighbourhoods and locations.
Creation of seasonal homes through property investment: A segment of the market place actually has second homes in great holiday locations such as beaches, lakes, mountains. These are homes they spend time in, but for much of the year the property is vacant. Short term rentals through an agency provide an income stream to maintain the property when the owner is not in residence.
Real estate has a language all of its own and it can be hard to decipher when you first start looking at listings.
This handy guide below will go a long way to helping you interpret advertising as well as create your own descriptions should you decide to advertise yourself rather than using the services of a real estate agent.
Choosing the right realtor is a challenge and we've provided this handy list of open questions to help you get your realtor chatting which will help you decide who the best fit for your needs.
No, you can rent it out yourself. However, a real estate agent is a professional with experience that can make the rental experience stress free as a good agent will advertise, do background checks and arrange the lease for you.
A long term rental apartment can be a good investment as once the tenant and lease are in place there is very little work involved, especially if you use a real estate agency to manage the rental.
If you are renting it is prudent to take out rental insurance as this will protect your belongings and provide peace of mind. Some landlords may also require you to take out this kind of insurance.
A landlord can only enter the property without notice for emergency repairs. Your lease will contain the terms of notice they need to provide. This is normally either 24 or 48 hours.