In some areas, especially in major metropolitan areas like Sydney or other big cities, it’s fairly easy to find a tenant for your rental property. This is why a lot of people tend to purchase a smaller place (with a lower upkeep cost) and rent out their (much larger) family home.
Nonetheless, it’s not just like you can vacate your family home and immediately start renting the place out.
First of all, you need to prepare, insure, fit-out and fix the place. This is quite necessary for the competitive rental property market such as Sydney.
With all this said and done, here are five tips that you need to take into consideration.
Table of Contents
The first thing you need to handle is the matter of insurance. Provided that the place that you’re renting is fully furnished, it won’t be enough for you to just get the general property insurance.
You also need to get the insurance for the contents of the place, which is yet another thing worth keeping in mind.
Ideally, you would be able to properly screen the tenants so that you minimize any potential damage (something that we’ll discuss later on).
Nonetheless, even the most seasoned of landlords can’t assess someone 100 per cent. Also, not all of this damage happens deliberately.
2. Increasing the appeal
The single most important thing that you need to keep in mind is the importance of increasing the appeal of your own home.
Why is this so important? Well, because the greater the appeal of the place, the lower the vacancy time will be.
In the rental industry, vacancy is probably the single worst thing that could possibly befall you. Why?
Well, first of all, it puts you in a scenario where instead of generating profit, the place is actually losing money. The lower the vacancy time, the better.
3. Getting the best of your vacancy
The downtime or vacancy isn’t necessarily bad for your rental property, it just shouldn’t last for too long. During this period, you need to ensure that your property is completely free of the traces left by the previous tenant.
This means a thorough cleaning of the place, the necessary repairs, as well as the assessment of the current state of the property.
Even with the most careful of tenants, you need to keep in mind that your property suffers over the course of time, which is why you need to look for experts specializing in home renovations in Sydney.
4. Setting the cost
Another thing you need to understand is the importance of setting the cost of your rental property. While you do want to remain competitive, the truth is that you shouldn’t lower the cost than you absolutely have to.
Why? Well, in areas like Sydney, there’s always a need for rental homes and it won’t really be that hard to find a tenant.
The best way to proceed with this is to do some research on other rental homes in the area (comparable to the size of your property) and make a comparison.
Learning how to screen your tenants is quite an important thing. You see, there are some who prefer families while others prefer students as tenants.
Here, even some stereotypes play a role, which is why some landlords prefer female tenants believing that they’re far more meticulous than their male counterparts.
There are preferences towards couples or singles, while for some landlords, people with pets are a strong no-no.
The truth is that, when it comes to this, there’s no general rule. What you need to do is watch out for people who are trying to manipulate you or putting a strong emphasis on trying to portray themselves in a much better light.
The very last thing you need to understand is the importance of turning your home into a rental property.
By making a sizable investment in your property, you’ll start your career as a landlord at a major loss. This means that you would either have to wait a lot longer to reach the much-needed break-even point or that you’ll have to increase the cost of the rent, thus becoming less competitive.
Keep in mind that as a landlord, you’re not just a homeowner, you’re also a businessperson. So, start acting like one.
- 7 Factors to Consider When Investing in Luxury Homes
- 3 Ways To Increase the Value of Your Home in the Real Estate Market
- 30 Interesting Real Estate Fun Facts and Statistics in 2021
- Do You Need a Lawyer When Buying a House?
- Top 10 Expenses to Consider as a Real Estate Investor
- Useful Advice for Renting your Residential Log Cabin