Tips When Renting Out Your Property for the First Time

Congratulations are in order if you've recently purchased your first property to use for investment purposes. However, if this is your first time renting out your property, you might compare the experience to climbing a steep mountain.

On your first try at renting out a house, no one expects you to know how to do it as well as a seasoned professional would. Even the most experienced real estate investors have difficulty finding tenants for their properties in a timely manner.

Finding tenants is the number one problem cited by 34% of owners of investment properties who contact us.

It's gutsy but not brilliant to charge in without knowing the ropes. If you do, you could end yourself with a problematic renter who damages your rental property or experience prolonged vacancy.

We have some advice to help you rent out your first property quickly and professionally. Before renting out your property, you should perform the most crucial responsibilities. You'll also learn some little-known techniques for attracting quality tenants.

1. Recognise each stage required in getting your house ready for rental use

For many property managers, it's a fact that learning how to buy and rent out your property for the first time can be challenging, especially if you want to complete the process quickly and without the help of an agent.

Additionally, up to 53% of property owners who contact us express anxiety about compliance, which is a major concern for landlords.

Therefore, if you're renting out your property for the first time, you must bear the following important considerations in mind:

• Minimum standards for safety
• Your home is spotless
• Report on entry condition
• Rental contract

These are the most important ones, however, there are still others. Use our new tenant checklist to make sure you're fully compliant before a renter comes in.

2. Recognise the proper ways to set rent

There are a few different ways to set the rent for your rental property if you're renting out your house or apartment for the first time.

• Online rental appraisals are free.
• For a rental appraisal letter, speak with your property manager.
• Make your own independent rent calculation.

Additionally, getting a free rental appraisal letter while doing it yourself is a wonderful idea. In this manner, you may contrast your findings and determine the best rent right away.

3. Recognise your target market

If you're a first-time landlord renting out your home, you might be wondering:

How do I choose the right tenants to rent out my home to?

That is a really good query. The natural next step is to identify the type of tenant that would be best suited for your rental property. Doing so will help you:

• Choose the appropriate time for your open house and, subsequently, inspections based on whether you're aiming to attract professionals, college students, or families.
• Make sure your open house is set up to appeal to your target market's interests.
• Make a rental ad that will appeal to your target market by considering if the extra space should be used as an office or a bedroom.

How then can you identify the ideal target demographic for renting out your property (a house or apartment)? A few things to think about are as follows:

• Location: Where is the address of your property? Is a school or public transportation nearby? Is it in a peaceful suburb or close to a university in the centre city? You can determine whether your property is more suitable for families, working professionals, or students by asking yourself questions like these.
• Income: You can assess the level of income you anticipate in tenants now that you've established the fair rental price for your home. We advise that income be 30% more than the rent. Renting to students is probably not a good idea if the house has three bedrooms and costs $700 per week.

Type of tenancy: Choosing between long-term or short-term tenants will depend on how you want to use your investment property, even though long-term tenancies are normally advised. But it would be beneficial if you gave it some thinking before renting out your house.

4. Use marketing to draw tenants to your home

When it comes to renting out your house, marketing will be a significant consideration, and this is true regardless of whether this will be the first rental of your property or one of several rentals in a row.

After you have determined the particular segment of the overall population that you will be renting your house to, it will be a lot simpler for you to sell your home and move on to another venture.

To get it right:

• Put the emphasis in your rental campaign on the features that will be most important to your target tenants, such as recent renovations and the types of spaces available (bedroom versus office, for example).
• Take high-quality, professional photographs of your rental property to add some flair to the advertisement for it.
• Advertise your business on multiple websites.

When it comes to marketing your property, you have a few different choices.

If you have made the decision to handle the advertising of your property on your own, our recommendation is that you make use of rent.com.au as your major option and flatmates.com.au as a secondary alternative to do so. If you have made this decision, we strongly recommend that you do so.

If you have a property manager looking after your property, you will be in a better position since they will be able to list your property on the most significant websites, which are domain.com.au and realestate.com.au. Without a property manager, you will be at a disadvantage. You will not be allowed to market your property on these websites if you do not have a property manager to represent your interests. Their sheer number of site visitors and the quality of the applications they receive are just unrivalled in the sector.

This is wonderful news, because it means that the quality of the applications for your rental property will likely improve as a result of the increased attention it will receive as a result.

5. Examine your renters

When it comes to tenant screening, the level of diligence that the majority of property owners are willing to put forth typically entails doing nothing more than having a brief conversation with the prospective tenant over the phone and possibly asking for a reference. This is the extent to which many property owners are willing to go.

When it comes to tenant screening, you need to step up your game if you want to reduce the risk of experiencing rental arrears or property damage in the future. Putting in the work now will save you time, money, and energy in the long run, and it is simply the greatest approach to avoiding tenants that cause problems in the future.

The following are some of the screening and verification methods you can use for your tenants:

• Rental history
• Resumé
• Tenant database
• Credit check
• Personal and professional references

Because potential tenants are obliged to disclose all of this information in their rental applications, you should be able to verify all of it easily.

Having a copy of our guide to tenant selection on hand is the most efficient way to ensure that you are renting to a person who will be a good fit for your property. We present a checklist of criteria and steps that can be performed when screening potential renters for tenancy in this guide.

6. Think about purchasing landlord insurance

You have a variety of additional protection choices accessible to you in the form of safety nets, and landlord insurance is one of those choices.

It is believed that around 30 percent of claims are on the loss of rent; doing so could very well spare you a great lot of misery in the future. [Citation needed] In the event that tenants break the terms of the rental agreement while they are living there, any damage that they cause to your property will be covered under this policy.

When things go wrong, having insurance plans to fall back on is critical because they operate as a safety nett. If you have decent insurance coverage, you will be covered for items such as:

• Rent default
• Loss of rent 
• Landlord Contents
• Personal injury or damage to property

It may appear to be an unnecessary expenditure, and to some people, it is; but, it will provide you with a sense of security and save you money in the long run in the event that something terrible takes place.

7. Make a property manager investment

You could be under the impression that managing your rental property on your own is the most financially responsible choice. Over the course of the investment property's lifetime, you will, in point of fact, save several thousand dollars.

However, if you ask any seasoned investor, they will undoubtedly tell you that hiring a property manager is worth the money because of the amount of time it saves you. This is especially important if this is your first time renting out a home to tenants. In addition, if you ask any seasoned investor, they will undoubtedly tell you that hiring a property manager is worth the money because of the amount of time it saves you

A property manager is employed by eighty per cent of the owners of real estate in Australia.

And there's a good explanation for that. A qualified property manager will take care of the majority of the responsibilities that are connected to your investment property. These are the following:

• Making sure that your property complies with all of the relevant rules and regulations
• Rental appraisal
• Leasing
• Repairs and upkeep of properties
• Rent collection
• Taking care of issues that require immediate attention or repairs
• Resolving disagreements
• Performing the necessary checks on a regular basis

You might decide to begin by working with an agent or property manager; however, once you have learned the information necessary to rent out and manage your property on your own, you are free to take control of the issue. Working with an agent or property manager might be a good idea.

You should become familiar with as much information as possible before making a decision. The best way to do this is to read through our extensive guide on property management, which covers everything it is important for you to know about in this field.

8. Understand your rights and obligations as a tenant

It is of the utmost significance to have a crystal clear grasp of the expectations that you and your tenants have of one another. This will ensure that there are no misunderstandings or miscommunications.

As a result, you have a responsibility to educate yourself on the rights and responsibilities that are applicable to both you and your tenants. These will differ from state to state; therefore, think of the list of sources that follows as a starting point:

• NSW
• ACT
• VIC
• QLD
• WA
• NT
• SA
• TAS

If the Tenancy Act for your state appears to be too hard to comprehend, you can get a head start by reading our summary of Tenant Rights and Responsibilities in Australia.

9. Begin formulating plans to boost the returns on your investment property

After you have completed the necessary steps to sign over the lease to your renter, it is not yet time for you to vacate the property. The next thing you should be thinking about is ways in which you may increase the rental return you receive from your investment property and maximise the profits that can be made from the property itself.

In spite of the fact that it can appear to be an additional responsibility on your part, we think that you should look at this in a positive light. When you own rental property, as opposed to investing in stocks, you are not exclusively at the mercy of whatever random happenings the universe may appear to throw at you. This is in contrast to the situation in which you are completely dependent on the luck of the draw. On the other hand, you have some say over how well the trip ends out for you and the decisions that are made along the way.

To increase the value of your property, you can do many excellent things, some of which are included below for your consideration:

• Property maintenance: Increasing the total worth of your home as well as the rent you charge for it can be accomplished by doing regular maintenance on its utilities, appliances, and outdoor areas.
• Invest in improvements and upgrades: You can significantly increase your returns by investing in a number of different improvements and repairs. What's the upbeat report? They are not all incredibly hot!
• Safety and security: You should ensure the safety of your home by erecting fencing and installing modern security equipment.
• Getting pet-friendly: Is it possible to bring a pet to your property? If this is the case, you might think about allowing tenants to have pets on your property because you will be able to charge such tenants a higher rent.

Your investment property is one of a kind because, rather than simply acting as a passive investor, you have a lot of agency and power to make it more profitable on your own. This makes it very special.

This may seem like a lot to take in, but the fact that you are seeking professional guidance on your first investment trip is a compliment to you. It's a portent that the future holds a lot of wonderful things for you.

Keep in mind that if you have some experience with the procedure and have rented out your house a few times, it will become easier to do so and you will have a better idea of what to anticipate.

9 Tips for Reducing Your Rental Property's Vacancy Rates

Every single one of the property owners had at least one tenant living in their rental property around the clock, every single year. You probably won't get there, but if you implement strategies to bring down your vacancy rate and cut down on vacancy loss, you'll get as near to that dream as you possible can.

It is not an easy task to find tenants who are willing to take over an existing lease; hence, you frequently need to be astute when selecting the appropriate renters and retaining them in order to decrease the amount of vacancy loss you experience.

A big challenge for landlords is locating new tenants willing to take over an existing lease. 52 percent of the property owners that work with us have rental units that are currently unoccupied.

If you follow our advice, you will be able to minimise the amount of time that your rental property is vacant and, as a result, increase the amount of money that you make off of your investment property.

Therefore, in order to make things easier for you, we have compiled a list of nine suggestions that will assist you in lowering your vacancy rate. Therefore, you won't have to put up with a negative cash flow for a single further minute than is absolutely necessary.

1. Keep your tenants happy

Keeping the renters you already have can be the best approach to bring down the percentage of vacant units in your building.

Ensure that your tenant is content at all times if you want to keep them as a long-term tenant. The higher their level of contentment, the greater the likelihood that they will continue renting from you.

On the other hand, if you want to keep your tenants for the long term, you should, in a nutshell, do the following:

1. Maintain a high standard of upkeep.
2. When your tenant comes out to you, be quick to respond.
3. Improve your rental home with amenities that tenants like to see, and respect their right to personal space.
4. Take the initiative when it comes to leasing renewals.
5. Get better at lease renewals

You may dramatically cut down on your vacancy rates and the amount of money you lose on your rental property by becoming an expert in lease renewals.

It's that old chestnut: maintaining the tenants you already have rather than wasting time and effort trying to acquire new ones.

If you give your renters sufficient time to consider whether or not they want to extend their lease when the end of the agreement is drawing near, you will demonstrate that you are concerned about looking out for their best interests. Having a landlord that is aware of their tenants' needs can make all the difference.

You might also attempt convincing your tenant to lengthen the lease term in exchange for a lower monthly payment; for example, you could ask them to switch from renewing the lease every six months to renewing it every year. Even if lowering the rent can go against common sense, it might be worthwhile to do so if it means retaining good tenants who will stay for a long time.

3. Keep your rent competitive

It's understandable if you're hesitant to reduce your rent at this point. Keep in mind, however, that it is essential to strike a balance between maximising your rental return and minimising your vacancy rates in order to achieve the best results. Even a $30 reduction in costs could make a significant difference in how quickly cash flow is secured.

It is always preferable to avoid extended vacancies if you can have your rent reduced by a few dollars each week.

When doing a rental appraisal, many owners forget that once they've discovered the optimal price for their property, maintaining that rate is an ongoing process and not just a one-time event. One year's rent that might be considered competitive might be drastically below market value the following year.

Because of this, it is extremely vital to research the market each time you look for a new tenant, even if it has been only a few months since your last search. In this approach, you will never have a problem luring high-caliber tenants who will remain loyal to you.

Read our post about when to cut the rent on your property advertisement if you want to find out everything there is to know about maintaining your rent at a competitive level while your home is on the market.

4. Use proven property marketing strategies

The question now is how you can put your best foot forwards to quickly locate tenants and maintain a low vacancy rate in your rental property. The solution rests in making your rental property more visible to potential tenants.

In the previous piece that we published on how to make your rental property stand out in a market that is competitive, Leigh Patrick detailed the steps that you can take to maintain the lowest possible vacancy rates. She split it down into three essential steps, which are as follows:

1. Invest on home improvements. What renters really want
2. Invest in the services of a professional photographer for your rental property.
3. You should perform preventative maintenance in order to upgrade and maintain your property.

It is a sensible investment in and of itself to hire a skilled professional real estate photographer who is familiar with what they are doing in terms of taking pictures from different perspectives and using photo editing software.

5. Stay on top of compliance

Now put yourself in the shoes of a potential tenant. You have literally just come through the front door, and the very first thing that strikes you is the putrid odour that is emanating from the wet carpet. There are spider webs around the windows, marks on the walls, and dust on almost every surface in the room. It is inconceivable that you will remain in this location for for one more second, much less continue to pay for housing there.

The moral of the story is that maintaining a home in a clean and well-presented manner is absolutely necessary, and the key to doing so is to make it a habit to stay on top of compliance.

A property that is maintained in excellent condition will also have the impact of drawing in high-quality tenants.

The fact that you are generally good at staying on top of paperwork and that you have all documentation in check will send a message to your tenants that you are an individual who is responsible and that you understand what you are doing.

It is true that maintaining a positive relationship with the local authorities is advantageous, but doing so also has the additional benefit of reducing the number of vacant units in your building.

You can accomplish this by consulting our checklist for new tenants, which details everything that needs to be done both before and after the addition of a new renter to your property.

6. Know where to find tenants online

Realestate.com.au and Domain.com.au, two of the most popular real estate websites in Australia, are obvious front-runners in any conversation about the best place to locate tenants. Both sites receive millions of visits each and every month. In addition, the screening process for background checks is carried out thoroughly, so you can rest assured that the applications you receive will be of a high standard.

If you list your home there, you will attract tenants of higher quality more quickly and experience a considerable decrease in vacancy rates.

The one and only catch is that in order to advertise on these sites, you need to hold a valid real estate agent licence.

Rent.com.au is highly recommended by us for all of you DIY property owners out there. They have a stringent process for vetting prospective tenants, which helps filter out low-quality applicants, and they boast considerable traffic on their website. This is similar to Realestate.com.au and Domain, both of which offer similar services.

But if you're looking for a rental that needs that additional bit of publicity, you can always head onto Flatmates.com.au and Flatmatefinders.com.au. These websites both cater to those who are looking for roommates. These websites provide you with the opportunity to see the profiles of potential tenants:

• how many years old they are
• where they would like to make their home
• how much money they are planning to spend
• how long they plan to be here
• employment status

You don't have to sit around and wait for prospective tenants to contact you; rather, you can be the one to make the first move and get your vacant property rented out more quickly.

The only drawback to using these websites is that, in contrast to Domain and Realestate.com, they do not carry out background checks. So, you may be in for some lower-quality applicants. While you're looking for a tenant, just remember to keep your cool and consult our tenant selection advice.

7. Thoroughly screen prospective tenants

You need to make sure that the people you rent your property to are trustworthy even if it's understandable that you'd like to see it rented out as quickly as possible. It is in no one's best interest to take on a renter just to have them vacate the premises a few months after they've moved in. You will need to begin your search from the very beginning once more.

There are a few straightforward steps you can take to evaluate potential tenants, including the following:

• Investigate their past experience renting.
• Make contact with your former landlords.
• Examine the database of renters.
• Check the documentation of the revenue.
• Inquire about the reason for their move as well as the length of time they plan to remain there.

If you follow this checklist to the letter, it should be rather simple for you to identify any potential warning signs. Keep in mind that the objective is to find a tenant who will stay with you for the long haul so that you do not experience the pain of the vacancy.

8. Start looking for a tenant at the right time

Your tenant has apparently decided not to renew their lease, which means that you will soon have to deal with a vacant property and a significant reduction in your overall revenue. It is only natural that the question "When should I start looking for a tenant?" will be on the minds of all property owners.

The appropriate time to begin looking for a new renter is determined by taking into account both what the law dictates and what the market dictates.

Let's imagine you've already had a renter in your home for some time, and they've approached you with the news that they're going to be moving out. Because of this circumstance, you will need to wait a little bit before you can begin the process of locating renters who will take over the lease. We are aware that it can be a little infuriating, but unfortunately, that is the way things are.

When exactly should you start looking for a new renter to rent your property?

The months of January and February are the greatest period to hunt for a new tenant, followed by the months of May and June. This is due to the fact that the majority of leases will be expiring soon (think 12-month and 6-month leases). Because of this, those are the times of the year when the majority of renters look online for new renting opportunities.

Aside from that, you should have the advertisement for your home up and running between 6 and 8 weeks before the current one expires. It provides you a good amount of time to hold viewings without being too early for anyone to be interested in attending.

It is important to keep in mind that the timing of when you can begin looking for a new renter is governed by the laws of some states specifically. For instance, in the state of New South Wales (NSW), viewings can only be held with adequate notice two weeks before the end of the tenancy agreement.

If you start looking for renters at the right moment, not only will you be able to maintain a low vacancy rate but also you will receive the largest potential level of interest in your property.

9. Get a property manager

A property manager is someone who spends their days working in the real estate industry, and as a result, they are well-versed in the art of marketing a rental property and finding reliable tenants.

If you use a property management, your home will be posted on realestate.com.au and Domain, which are the two websites that are the most effective when it comes to finding tenants.

In addition to this, they will be able to provide you with useful suggestions and advice regarding the enhancements that you may make to your rental property.

All of these factors work together to bring about reduced vacancy rates for you and higher returns on the investment property you own.

Having said that, there are some property managers who stand head and shoulders above the others, and you need to make sure you hire one of those.

Before you sign up with anyone, consult our advice for hiring a good property manager so that you are aware of the things you should look for and the questions you should ask during an interview.

Summary

Finding tenants is the number one problem cited by 34% of owners of investment properties. 53% of property owners who contact us express anxiety about compliance. Learn how to set the rent for your rental property if you're renting out your house or apartment for the first time. If you're renting out a house or apartment for the first time, marketing will be an important factor. You can determine whether your property is more suitable for families, working professionals, or students.

Take high-quality, professional photographs to add some flair to the advertisement for it. If you do not have a property manager, you will not be able to list your property on major websites such as rent.com.au and realestate.net.au. Screening tenants is key to ensuring that you are signing on a suitable renter. Having decent insurance coverage is critical. It will provide you with a sense of security and save you money in the long run.

A qualified property manager will take care of the majority of the responsibilities connected to your investment property. Hiring a property manager is worth the money because of the time it saves you. When you own a rental property, you are not solely at the mercy of whatever random occurrences the universe may throw at you. You have some control over whether or not the journey turns out well for you. There are many wonderful things you can do to raise the value of your property.

9 Tips for Reducing Your Rental Property's Vacancy Rates. 52 per cent of the property owners that work with us have rental units that are currently unoccupied. If you follow our advice, you will be able to minimise the amount of time that your rental property is vacant. Landlords may cut down on their vacancy rates by becoming an expert in lease renewals. Give tenants more time to consider whether or not they want to extend their lease.

Even a $30 reduction in costs could make a significant difference in how quickly cash flow is secured. How can you make your rental property more visible to potential tenants? Invest in a professional photographer and perform preventative maintenance. Maintaining a clean and well-presented property will also attract high-quality tenants. Stay on top of compliance with local authorities and ensure that all documentation is in order.

Domain and Realestate.com.au are two of the most popular real estate websites in Australia. In order to advertise on these sites, you need to hold a valid real estate agent licence. If you're looking for a rental that needs that additional bit of publicity, you can always head to Flatmates.co.au and Flatmatefinders.org.au. When exactly should you start looking for a new renter to rent your property? The months of January and February are the greatest period to hunt for a tenant.

May and June are the best months to start looking, as most leases will be expiring soon. It can be infuriating, but that is the way things are. In some states, viewings can only be held with adequate notice two weeks before the end of the tenancy agreement. If you use a property manager, your home will be posted on realestate.com.au and Domain, which are the two websites that are most effective at finding tenants.