The process from your complete house and land package to having a great tenant can seem daunting, but speaking to the right people from the very first stage will allow you to relax. A good property manager will step you thorough the process from setting your rental fee to collecting rent on time and dealing with any required maintenance in the future. If you would like to speak to someone with a simple and straight forward pricing system and who are here to talk to you whenever you require- then you should have a chat to Leasi.
But what should you expect the leasing process to look like? With the help of our friends at Leasi, we have broken down what you should expect so that you feel informed and prepared.
Leasing Your New Build: Step by Step
Finish your new home build: You’ve gone through the process of choosing a house and land package in a growth area. You’ve waited for your land to settle and the house to be built. You finally have the keys, and you are ready to start renting out your new investment property. Congratulations are in order because your decision to invest in property is a great way to secure your financial future and retire comfortably. But how do you get the most return for your investment? By engaging the best property manager you will be able to get financially secure tenants who look after the house.
1. Set the rent
When you start the leasing process one of the most critical steps is setting the rent for your investment property. Your property manager will assist you in deciding how much you can expect and should seek to collect monthly, based on the market, your property and what similar properties are being rented for. It is important that from the very first step you speak to a professional who has experience and a thorough understanding of the market conditions.
2. Market your property
It is now time for your property manager to go out and get eyes on your rental listing. This can be done many different ways. Typically, a high online presence is taken, as this is where a lot of renters start their search and means that your rental property can be seen 24/7 by potential tenants. It is also important to market your property in a way that will attract the right tenant’s for you. Having a chat with your property manager about this might be helpful.
3. Choose a tenant
Without a doubt the most important part of this whole process is finding the right tenant, because they can make or break the success of the later stages. As a landlord you will require a stable and respectful tenant who will continue to pay rent on time. When your property manager helps you choose a tenant they should make sure that they assess any risks by thoroughly exploring the tenants background and rental history.
4. Tenant agreements
The contract that you and your chosen tenant sign must state clearly the terms and conditions that both parties should abide by. This will outline the length of the lease, what happens when rent isn’t paid and what is expected in terms of maintenance from both sides. Along with this, the property manager will also generally collect 4 weeks worth of rent as a bond to secure you if something goes wrong.
5. Rent collection
Because property investment is a business decision and you require to have the funds transferred promptly and in full, a property managers role is to follow up renters immediately if rent is late and issue termination if the renter doesn’t pay after a certain period. Obviously this is worst case, and generally renters chosen correctly are fine, but it is always good to have the certainty there just in case.
6. Property maintenance / inspections
The great thing about investing in off-the-plan house and land packages is that they are low maintenance and it is unlikely that you will have to undertake any repairs for many years. However, when the time comes that something needs to be fixed, your property manager will carry out repairs for you, after consultation, and will deal with any issues, so that you can get on with your day to day life. Same with inspections. A good property manager will provide you with a thorough report and photos.
7. End of tenancy
When your tenant decides to vacate the property, and confirms in writing, your property manager will follow up all of the documentation, any rent, utilities or damage that needs to be covered and will return the remainder of the bond. All you need to do now is speak again to your property manager and re-establish the rental rate for the next tenant.
Purchasing an investment property is a great business decision, and creates the opportunity for you to make a good rental return as well as capital gains down the track. Getting the most for your money through your rental income could make a big difference, so make sure you speak to the experts at Leasi.
Zoe Langenberg
Zoe is passionate about coffee and interior design. You can find her most weekends exploring an art gallery or devouring a good book.
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