5 key considerations for renting out your property

Achieving wealth and financial freedom through property acquisition is an attainable goal, although it does require education and having appropriate knowledge, and can at times be overwhelming, even for a seasoned investor. Knowing the right steps to make requires good advice on renting out a property and correct strategies to ensure that you are headed in the right direction to achieving your goals when renting your property.

Renting your property with confidence is easy when you know how. In this video, we provide you with five key considerations that you need to have when you’re looking at renting out your property.

If you’re ready to discover how you can rent out your property with confidence, download our free Step By Step Checklist to Renting Your Property with Confidence.

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1. What are the costs associated with renting out your property?

Expense items that you need to consider when renting out your property include, but are not limited to:

• Insurance
• Council rates
• Land tax
• Water rates
• Strata levies, if the property is strata titled
• Repairs and maintenance
• Compliance, including smoke alarms
• Management fees
• Advertising costs when looking for a tenant
• Accounting fees
• Loan and interest repayments
• Tax on rental income

2. What sort of insurances do you need?

Insurance items that you should consider for your investment property include, but are not limited to:

• Landlords insurance
• Building insurance
• Contents insurance

3. What is the benefit of having a great Property Manager?

Utilising the services of a Property Manager to manage your property is a key decision. A competent Property Manager can save you stresses that can come with having to manage your investment property. Knowledge of legislation, finding, screening and managing your tenants and their rental applications, management of rental arrears, detailed property inspections including condition reports, that will not only advise on required repairs and maintenance but also ensure the property continues to increase in value, arranging of repairs and maintenance, correct accounting procedures, and legislation advice are just some of the tasks a great Property Manager will do on your behalf. Many property investors will dismiss the idea of hiring a Property Manager, but a engaging property management services from a great Property Manager can be a main factor that can dramatically improve the return on your investment.

4. How will an investment property affect your tax/financial situation?

As you will be receiving rent from the property, this will be classed as income, which will attract tax. Costs associated with owning the investment property may be claimed as a tax deduction to reduce your taxable income. You should also be aware that any capital gain that you may make when selling or disposing of the property will be subject to capital gains tax.

With everyone’s situation being different, it is advisable that you speak directly with your trusted accountant or financial planner about this investment property and it will impact on your current tax situation. Being organised with tax time tips will help with your discussions with your accountant. We also encourage you to ensure you keep detailed records right from the start to work out what expenses you can claim as deductions and declare all rental related income, and also be able to review any depreciation that can be claimed.

5. What additional services will be included in the weekly tenant rent?

The rent that a tenant pays to you as a landlord give them the right to live in the property. You can include additional services/items into this weekly rent, such as lawn and/or swimming pool maintenance. Both these items are generally the responsibility of the tenant, but you may feel more comfortable in knowing that these are being cared for correctly by certain qualified certain technicians, and the tenant may be happy paying a bit extra in their weekly rent to have these responsibilities taken care of.

If you’re ready to discover how you can rent out your property with confidence, download our free Step By Step Checklist to Renting Your Property with Confidence.

YES, DOWNLOAD MY CHECKLIST

If you feel you could benefit from our experience with property management, we’d love to hear from you. Simply reach out.  I hope that has helped you today. If you have any questions I’d love to talk to you. My number is 0426 264 771. I look forward to talking to you soon.