There is a lot to consider when you first take the step to rent out a property you own. Whether you are looking to move out of the family home and offer it for rent, or whether you have purchased your first investment property specifically to find a great tenant - there is a lot to be done before it hits the market.
A conversation with an experienced rental property manager is of course a very good place to start. Additionally, the following points will provide a broad overview of what will need to be done and/or prepared in advance of finding a tenant for your home.
1. Legal requirements before renting your property
2. Consider what to leave behind at a rental property
When preparing your home for cleaning, give special thought to anything you may leave behind. We've had landlords move interstate and internationally, and wish to leave behind items such as fridges, furniture and gardening equipment. This is fine, as long as it is clearly communicated to prospective tenants that these are inclusions and not burdens, and the items are in perfect working order. Such inclusions may add rental value and desirability.
Be careful however to not leave things behind simply because you don't want to take them with you or deal with their disposal. For example, hardware such wood planks, old storage containers, or undesired furniture can devalue a property and be a turn-off for prospective tenants.
3. Service fixtures such as air conditioning
Before renting the property out, you should service fixtures such as air conditioning. This not only ensures that the air conditioning unit is clean and working as it should for your new tenants, it gives you peace of mind of the full working condition you are leaving the property in.
4. Cleaning to prepare a rental property for lease
As a landlord, ensuring your home is in top-top condition at the start of the rental period will help ensure this is the state the property is returned in. A beautifully prepared and presented home will also often achieve higher rental return and a greater number of high-quality applicants.
To assist, we have prepared a very detailed rental property cleaning checklist which can be downloaded as a PDF and used in the preparation of your home for rent.
5. Pest inspection and treatment of the rental property
It is strongly recommended that you complete a pest inspection and treatment of your home before it is rented to tenants. Again, this provides you peace of mind that you're handing the keys over with the property in tip-top condition, and providing your new tenants with a comfortable start to their tenancy.
Contact us if you would like a recommendation of a professional pre-rental cleaning service in the Newcastle area.
6. Get your depreciation report done before tenants move in
A depreciation report should be completed before the tenants move in, as access is much easier to arrange before the property is occupied. This report is of course vital to assisting in minimising your tax obligations.
7. Arranging landlord insurance
We strongly recommend that all landlords put in place a landlord insurance policy in addition to more standard building and contents insurance policies. We have covered the reasons for this separately in our article "Do I need landlord insurance for my rental property?".
Landlord insurance typically covers you for claims related to loss of rental income (e.g. due to a tenant defaulting or absconding), malicious or accidental damage, water damage, death of a tenant, and storm damage, among other events. In what can be a hectic time finalising a property for rent, this critical insurance can sometimes be overlooked.
For help navigating all there is to think about when preparing your property for the rental market, contact an expert. We have these conversations with landlords every day - so remember, what may seem overwhelming to you is what we help with every day of the week!
Carnelian Property Management Newcastle NSW
We are a family-owned and run Newcastle real estate agent offering expert property management across Newcastle and Lake Macquarie.