Property Rentals: What you Need to Know

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.