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How o Successfully Manage Your Own Investment Property Rental

Traditionally, people who own investment properties that are rented out to tenants have used a real estate agent or property management company to handle the process. However, more and more owners are ditching the agents and handling the management of their property themselves. An agent or manager generally charges a minimum of $2000 per year to manage the property, with extras for advertising, re-letting, and administration.

The cost, coupled with concerns that your property will be poorly managed, may mean that you are considering renting out your property privately. Before you do, here are some important things you will need to organise for it to be a success:

Landlord insurance

Whether you rent out your property privately or through an agent, landlord insurance is vital. This insurance will cover your property against any damage caused by accidents, natural disasters, or other unfortunate events. It will also cover you for damage to any contents that you provide for your tenants.

If you like, you can also include other premiums on your insurance to protect you if your tenants prove to be less than ideal. These extras can cover against theft, non-payment of rent, and legal costs if tenants refuse to meet their financial obligations.

A legally binding tenancy agreement

This is actually much easier than it sounds. You can download and print a tenancy agreement from your state's Residential Tenancy Authority, or RTA, and fill out the relevant details. The form is fairly self- explanatory but be sure to include the amount of rent to be paid, when the rent is due, the method of payment, and the length of the tenancy.

Once you and the tenants have signed the agreement a copy of it can be lodged with the RTA. Keep the original form for your records, and give the tenants a copy as well.

An inventory and condition report

An inventory is a list of the removable contents of the house. This can include things such as light fittings, curtains, and appliances. As well as listing the contents, also make note of the style, make, and model of the items.

The condition report is a detailed description of the state that each room of the house is in, as well as the exterior areas. A condition report can also be downloaded and printed from your state's RTA website. Once you have completed the condition report, your tenants will also need to check the property, identify any discrepancies, and then sign it. Again, each party keeps a signed copy, and the condition report is then used to recognise any damage or breakages that the tenant has a responsibility to fix once the lease has ended.

With these measures in place, you are in a strong position as a landlord to effectively manage your own investment property. You will save a considerable amount of money, and rest easy knowing that your property is in the best possible hands. If you have other questions, click here to read more and get more advice from professionals.


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