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Know who your property will suit and attract
The tenants your property will attract will mainly depend on its size and location, but the condition of the property and its facilities will also play a part.
Get a good agent/property manager
Critical to this process will be finding and working with the right local letting agent. They can assist you in deciding what maintenance and improvements you should make before you advertise it for rental. You can then use an agent for setting a rental rate, advertising and finding the right tenant, signing the lease, and the ongoing management of the property.
Stay up-to-date on current market rents
Over time, especially with a long-term tenant, the rent being paid may not stay up with the current market rate. It is important to stay up to date with the rent being received on comparable properties in your area and ensuring your property’s rent doesn’t fall too far behind over time.
Minimising any vacancy period
Make sure there is no delay between a departing tenant’s notice that they are vacating and the advertising of your property. Usually 12 month leases, rather than six months, will lead to a more stable tenancy and therefore fewer vacancy periods (reducing the cost of finding new tenants).
Minimise non-chargeable wear and tear
It is usually the property manager’s task to conduct and document regular property inspections and note any unreasonable wear and tear, and to charge the tenant accordingly. If this policy is firmly committed upfront, tenants may look after your property better.
Negotiate reasonable property management fees
Property management fees tend to vary quite widely between agents, and between states and territories, but they are usually between 5% and 12% of the amount of rent payable on the property.1 Even a 0.5% reduction in property management fees can therefore make a difference to the costs over time.
