Have you been considering renting out your property? If so, you would probably know by now that it isn’t an easy task.
There is a lot more to it than simply putting up an advertisement in the newspaper or sticking a notice on the garden, says Pri from Ministry Of Cleaning, a cleaning services provider in Melbourne. From deciding the asking price to finding the best insurance (and the best tenants!), the responsibilities that come with renting out a property of yours can be very overwhelming to some which also includes repairing your home before letting it out for rent.
This is more common than you think and we know it which is why we have compiled a quick list of the top things you need to know when you are renting out a property. The following tips will ensure that things go as smooth as possible and you can hand your property to safe hands while maximizing profits. Win-win for everyone!
Preparing the property is very crucial to a successful deal. How do you do that? You can begin by repairing any damages to the house. These include holes in the wall, flaky paint and ensuring that all the windows and other entryways are well secured. In cases where health and safety can be an issue, the consequences are even more serious. For instance, mould can lead to respiratory issues. Once the damages have been taken care of, consider renovating all the outdated aspects of the house in order to meet modern requirements.
Book a service date with a cleaning company for a thorough clean up. Many cleaning services that have experience in the vacate cleaning know exactly what needs to be done for a house on the market. It would be prudent that you choose a company that has long standing experience. The package should include things like washing all the carpets also called steam cleaning, pulling down the curtains and cleaning them, dusting the furniture and removing all the dust and dirt from the cabinets. Of course, the tasks covered differs from company to company so be sure to inquire beforehand.
The next step will be listing the property. By taking the time to ensure your property is in a presentable state, you can greatly improve your chances of securing the deal.
What exactly does this mean? Well, you will have to setup your house in a manner that makes it easy for a prospective renter to imagine themselves in the property. If your budget allows it, consider calling in professional staging companies. If you are facing budget restrictions, do not fret; there is still plenty you can do. You can put away all photos and other reminders of the previous tenant’s presence and arrange the furniture in the right locations to give the impression that the house is ready to move.
Protip; consider investing in some high quality furniture and not furniture pieces that can break easily. If you pick the right tenants, you will not have to worry about damages but wear and tear is a reality that happens in every household. Ideally, you should pick furniture that hits the sweet spot between durability and price. Opt for neutral colours, stainless steel kitchen appliances and materials that can be cleaned easily – that means you should avoid fabric!
With your property staged, time to get some great shots of it! Pictures are what will convince a buyer to pick up the phone and call you so it is important that you put a lot of attention into ensuring that those pictures make your house look rent-worthy.
Ideally, you would have a real estate photographer to do it but we know that’s often out of the budget so here are our top tips to take your own photos.
- Always use a wide angle lens when shooting because it allows you to capture most of the room
- Make sure that all photos are sharp; avoid uploading blurred and unfocused images.
- Feel free to experiment with angles. Take several shots in different positions to find the right angle.
- Shoot only during the mornings. Sunlight has a great way of making every room look more inviting.
- Don’t forget to include shots of the outdoor gardens, view from the street, patio etc. (curb appeal plays a huge role)
Finding the right tenants is never easy no matter how experienced you are in the real estate industry. Your aim should be to find reliable renters who will respect your property and pay the due rent on time. For first timers, it’s very easy to be fooled by the appearance and behavior of a prospective renter but be sure to always do thorough background checks. At the very least, you must ask for references from an employer of theirs, the previous real estate agent and other documents that can verify their identity.
Contact the given references and ask about the tenant’s reliability, rental history as well as the status of their employment.
How do you set the right price? Great question. This is one of the biggest confusions regarding real estate. Set the price too high and you won’t have renters. If you reduce it after that, renters will have the impression that this is a house that isn’t being taken up for some reason. On the other hand, you set it too low and you end up losing profit and giving the idea that something is wrong with the house!!
The easiest way forward is by comparing the prices of similar properties in the surrounding suburbs. Online classified websites will help you narrow down the search in terms of bedrooms, balconies and so on making your task easier.
If you are someone who is not really looking forward to being a landlord and dealing with tenants directly, a property manager might just be what you need in your life. Property managers handle every aspect of the rental process – from finding a great tenant to handling any disputes or damages that arise. Other than that, a property manager can help you save a lot of time by keeping track of payments, performing regular inspections, and ensuring there is a clear line of communication.
While we are talking about renting out your property, it might be useful to learn about some property tax deductions for your investment property.
