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.
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What are the top 4 things property management clients value?
In the ever-evolving world of property management, clients value certain qualities and services that distinguish outstanding property managers from the rest. Whether you're a landlord with multiple rental properties or an investor seeking to maximise returns on your investments, the objectives that are sought from the management of your property tends to be the same. Here is what some of our property management clients have shared are the top things they truly value when it comes to their investment property. 1. Excellent Communication One of the most consistent praises among clients is excellent communication from their property management team. Kris, for instance, highlighted that “great communication, prompt action on instructions and sound advice has afforded peace of mind”. It was a similar story for Patrick, who emphasised that everything needed to secure the best new tenants for his rental property was done. “Great communication throughout the whole process of changing tenants,” he said. Effective communication ensures that landlords are informed about every aspect of their property management, from tenant enquiries to maintenance updates, fostering trust and transparency in the landlord-property manager relationship. 2. Prompt Action and Responsiveness In the fast-paced world of property management, prompt action is invaluable. Kris appreciates the "prompt action on instructions," indicating that swift responses to queries and requests contribute significantly to client satisfaction. Andy , who has experience in the real estate market for more than 30 years and worked with a number of agencies in the area, echoed this sentiment. "My previous tenants, which Joanne recommended, were an absolute charm and left the property as good as when they entered," Andy said. "While they recently vacated, new tenants moved in the same week.” He said while the last tenants moved out due to downsizing, he praised the team for being “quick in managing the advertising campaign and very thorough with the selection process and recommendation”. 3. Sound Advice and Professionalism Another key theme that emerged from feedback from clients was how they valued property managers who offered sound advice backed by industry expertise, along with professionalism. Maggie described Joanne and the team as “streets ahead of any other agency I’ve had dealings with over many years in Sydney and Wollongong”. “Their commitment and personal touch are consistent and their professionalism always first class," Maggie said. "During our purchase period, ALL the staff were available for support and during a difficult market period they have sought a tenant for us and guided us through the process. "I look forward to a professional ongoing relationship.” This demonstrates the importance clients place on the professionalism and expertise of their property management team. 4. Personalised Service and Genuine Care Beyond professional expertise, clients value property managers who demonstrate genuine care and personalised service. And that goes for landlords and tenants, as expressed by Roger. "Regardless of my rental status, Joanne and her staff... were very respectful and made my experience trouble-free and quite enjoyable,” Roger said. He described the team as "extremely confident”, that he felt he was "always in safe hands during the process” and they “demonstrated a willingness to be of assistance and in an extremely professional manner”. “It was very pleasing to be find an agency that treated both landlord and tenant in such a respectful and efficient manner,” he said. This personal connection fosters a positive client experience and builds long-term relationships based on trust and mutual respect. What is it that you value? Is it also effective communication, prompt action, sound advice, and personalised service? By prioritising these qualities, property management teams can cultivate strong relationships with clients and deliver exceptional service that exceeds expectations. As evidenced by this glowing feedback, the right property management team can make all the difference in maximising the value and success of real estate investments. If you’re not a One Agency JD Property Agents client, but would like more information on our landlord services, contact us on 4285 7400 or via email. We are always happy to answer questions and offer advice, or offer a free rental property appraisal.
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Choosing the Right Real Estate Agency to Sell Your Property: A Guide for Landlords
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We hope that has helped you today. If you have any questions, or you know of anyone who may benefit from our real estate services, we’d love to chat. Our number is 0426 264 771. We look forward to talking to you soon.