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A Comprehensive Guide for New Landlords: Securing a Tenant and Managing Your Investment Property

Oct 10, 2023

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A Comprehensive Guide for New Landlords: Securing a Tenant and Managing Your Investment Property

Welcome to the world of property investment! As a new landlord, you will need to learn about the numerous aspects of managing and maintaining a rental property. This comprehensive guide will help you navigate the process, ensuring both you and your tenant have a positive experience.

1. Vetting Prospective Tenants
Finding the right tenant is crucial for a successful property rental experience. You want someone who will treat your property with respect and fulfil their financial obligations. Take these steps to vet prospective tenants:

  • Request a rental application that includes personal information, employment history, rental history, and references.
  • Run a credit check to obtain an understanding of the applicant's financial stability.
  • Verify the applicant's employment status and income level.
  • Check their rental history, including references from previous landlords and property managers.
  • Conduct a background check to assess any criminal history.

2. Collecting a Bond
A bond serves as security against property damage or unpaid rent. Here's how to handle bond collection:

  • Familiarise yourself with local laws and regulations on bond amounts.
  • Clearly outline the bond amount in the lease agreement.
  • Collect the bond before the tenant moves in.
  • Lodge the bond with Bond Administration within 14 days of receiving the payment.

3. Repairs and Maintenance
As a landlord, it's your legal obligation to provide a safe and habitable property. Implement the following steps to manage repairs and maintenance:

  • Perform regular maintenance activities, including landscaping, pest control, and minor repairs.
  • Address emergency repairs promptly.
  • Maintain an open line of communication with tenants, encouraging them to report any maintenance or repair issues.
  • Schedule routine maintenance to prevent bigger problems down the road.

4. Conducting Regular Inspections
Routine inspections help you monitor the condition of your property, ensuring tenants are adhering to the terms of the lease agreement. Keep the following in mind:

  • Ensure you give the tenant 7 - 14 days written notice using a Form 19; notifying them of your intention to inspect the premises.
  • Use an inspection checklist to ensure consistency.
  • Document inspection findings, including photos of any damage (date stamped)
  • Communicate any required action items with the tenant.

5. Knowing Your Rights and Responsibilities
As a landlord, you should be well-versed in local rental laws and adhere to your responsibilities, while also understanding and enforcing your rights. Some key responsibilities include:

  • Providing a safe, liveable, and clean property.
  • Respecting the tenant's right to quiet enjoyment.
  • Giving proper notice before entering the property.
  • Addressing maintenance and repair issues promptly.

6. Tax Obligations
Rental income is subject to taxation. Some helpful tips regarding taxes include:

  • Declare your rental income on your yearly tax return.
  • Deduct relevant expenses, such as repairs, maintenance, management fees, and mortgage interest.
  • Consider seeking professional advice to maximize deductions and ensure compliance.

7. Engaging a Professional Property Manager
A professional property manager can alleviate the burden of managing your investment property. They can handle tasks such as finding and vetting tenants, collecting rent, coordinating repairs, and managing legal aspects, giving you peace of mind and freeing up time. The team at Aqwasun Estate Agents are here to help!

8. Securing Landlord Insurance
Landlord insurance acts as a safety net, covering property damage and lost rental income, among other things. Do thorough research and select a policy that best suits your needs.

In conclusion, being a successful landlord requires an understanding of various aspects of property management. By following this guide, you are well on your way to a rewarding investment property experience. Consider engaging a professional property manager to provide additional support and expertise.

 

*While we have taken care to ensure the information above is true and correct at the time of publication, changes in circumstances and legislation after the displayed date may impact the accuracy of this article. If you need us we are here, contact 08 9537 1220 if you have any questions.

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