There are many
property investors that make a healthy return on rental properties, and if you
are thinking of acquiring a property with a view to renting it out, there is a
lot to consider. The property landlord is responsible for many things, and the
tenant has rights, and all of these aspects must be taken into consideration.
What to do in the event of a conflict with a tenant? Or if a tenant leaves the
property in bad condition? These are questions that need to be addressed, and
the best solution would be to use the services of a property management
company.
Property Rental
Agent
Whether looking to
sell a house in Kallangur or purchase a house to rent, there are top
real estate agents that also offer property management services for the rental
sector. They would source and screen tenants, prepare tenancy agreements and
oversee building maintenance, which are essential services for landlords.
Crunching the
Numbers
Calculate the cost
of acquiring the property, including taxes and agent fees, then add to that the
cost of carrying out remedial repairs, to have the property ready for
occupation, and let’s not forget building maintenance and property management
fees. Once you arrive at your total costs, work out the expected monthly rental
and that will tell you what the margins are, providing, of course, you can rent
the property. Click here for help with finding the cheapest homes on the market.
Things to note:
- End of
tenancy cleans and inspections are the landlord’s responsibility. - The
property must comply with all government standards. - In the
event of a conflict with a tenant, this could be very expensive regarding legal
costs. - The
property owner is ultimately responsible for the upkeep of the property.
Property
Management
This is most
definitely the way to go, as the provider has all the services that you
require, and they can take care of every aspect of the rental, keeping you
informed at all times. If you factor in the management fees and it still looks
good, then investing in rental property is a great way to create wealth.
The Legal
Aspect
You will need some
legal advice, and someone to create tenancy agreements that comply with the law
and protect both landlord and tenant, plus rental property owners are liable
for taxation, and there are property management providers that have their own
legal teams, specifically to cover these issues. While it is unlikely, you
could find yourself with a tenant who really knows the law and they decide to
be uncooperative, which could lead to a long and drawn out court hearing. It is
important to have legal counsel when renting out property, which would be part
of the package with a property management company. Here is a government website regarding property, something you should read.
Of course, the
location of your property should be attractive to the tenant, so when looking
at potential properties, research the area to see what services and amenities
are available, as this is relevant. A good real estate agent can do a lot for
the rental property owner, and a Google search will give you a list of local
agents, and you can begin your quest to find the right property.
