Making the Decision
Deciding whether to rent out your property can feel overwhelming. Whether it’s an investment property or a place you once called home, you’ll want to protect both yourself and your property while getting the best return.
The Role of a Property Manager
A property manager does more than just collect rent. They offer a full management service that includes:
– Advising on rental value
– Advertising for tenants
– Screening and leasing to tenants
– Preparing tenancy agreements
– Collecting and lodging the bond
– Collecting rent
– Checking property inventory
– Inspecting the property
– Managing utility accounts
– Providing regular financial statements
– Representing you in court for tenant disputes
– Finalising the bond and inventory at the end of the tenancy
Several surveys have found that landlords who self-manage their properties are more likely to encounter tenant issues compared to those who use property managers.
Hicks Real Estate Fees are below:
– Ongoing Management: 7.7% including GST
– Letting Fee: The first week’s rent plus GST
– Lease Renewal Fee: $110 including GST
– Admin Fees: $6.60 per month
– Title Search Fee: $26.95
Advertising fees, professional photography, and tribunal fees (should we ever need to use them) are set out in the Form 6 and vary property to property. We will discuss these at a later date, although they aren’t very high.
Choosing a Property Manager
Selecting a property manager is like an interview process. Asking the right questions will help you compare different services and understand their role fully.
Before meeting with a property manager or several, to discuss your needs, have a think about what you require from a property manager and if you would like to be completely hands-on, hands off or somewhere in the middle.
Ensure You Have Landlord Insurance
Renting out your property carries financial risks, especially if you have an emotional attachment to it. Landlord insurance covers things that building and contents insurance usually doesn’t, such as:
– Malicious or intentional damage by tenants or their guests
– Theft by tenants or their guests
– Loss of rent if tenants default
– Liability claims by tenants
– Legal expenses for tenant disputes
Not all landlord insurance policies are the same, so do some research or ask the team at Hicks Real Estate for recommendations.
Discuss Tax Issues with Your Accountant
Renting out a property can have tax implications. Inform your accountant of your plans and discuss whether you need a depreciation schedule.
Set the Rent with Your Property Manager
Your property manager can advise you on rental rates based on the local market. Do your own research too by checking similar properties on sites like realestate.com.au and domain.com.au.
Create a Marketing Plan
Your property manager will help market your property to potential renters. Only estate agents can list on popular sites like realestate.com.au and domain.com.au. Ensure your listing stands out by checking:
– Are there several good photos in the advertisement?
– Was the property cleaned and the garden maintained before photos were taken?
– Is the advertisement copy compelling?
– Are applicants being properly screened, including checks on national tenancy databases, credit, employment, references, and criminal history?
Ready to Rent!
After completing these steps, you’re all set to rent out your property, confident that you’ve made an informed choice in selecting your property manager.
Click here to lock in a time with Jodi to discuss any of your needs and how Jodi can help you.
Jodi-lee Senior
Jodi is our Investor Support Manager. She is responsible for helping our clients build their property portfolios and get the maximum return on their investment. Talk to Jodi on 0427 445 427 about how you can improve your Property Portfolio
