How to Navigate the Rental Market: Tips for Property Owners and Tenants

The rental market can be challenging whether you’re an investor looking to lease your property or a tenant looking for a home. Having an understanding of the dynamic market, regulations and practices can help make the process smoother for all involved. 

Here's a guide to help property owners and tenants to navigate the rental market successfully. 

Guide to finding the perfect rental property

Finding the perfect rental can certainly be challenging and involves a combination of research, planning and attention to detail. Creating a list of your needs and preferences is a good place to start. 

Establish your budget, this will be made up of rent and expected utilities. Having your budget may also help you narrow down locations as some areas will of course be more expensive than others. 

Spend time researching neighbourhoods and be sure to take into account proximity to work, school, or daycare if needed. Take the opportunity to view multiple properties to get a good idea of what you like or dislike. 

If you're moving to a new town it can be tempting to apply or accept rentals without viewing the property in person. We strongly recommend viewing the property in person before you sign any lease. This means you can make sure that the property is exactly what is advertised before committing. 

One thing that is vitally important before you sign on the dotted line is making sure you understand the lease agreement and its terms. 

Tips for property owners on screening tenants and maintaining properties

Having an investment property is a big commitment financially and can often be very stressful. 

In order to protect your investment you want to know who is living there. In order to do this you want to make sure they are properly screened. 

You do this by:

• Conducting background checks 
• Verifying employment 
• Contacting references 

Conducting these checks means you help to lower the chances of renting to those who may inflict property damage, not pay rent or display behavior that can be disruptive. This last one is especially important in an apartment setting where they may live very close to others. 

A property management professional will help to vet any potential applications and make recommendations as well as do the leg work when it comes to background checks. The right property manager is worth their weight in gold and your job as an investor is much less stressful. 

Ensure that your property is well-maintained and in good repair. Increasing the appeal of the property will help to attract high-quality applicants. 

Do your research to find out what the market value of your property is likely to be. When setting the price you need to take into account:

• Location 
• Amenities 
• Property condition 

Legal considerations and rights for both tenants and property owners

Once you are ready to choose tenants you need to be aware of any rental reforms and requirements.  These are often put in place to protect both the homeowner and tenant. 

As an investor, It is important to be consistent with your decision-making and make decisions based on established screening criteria and regulations.  Try and avoid any personal biases during the process to maintain fairness and avoid discrimination claims. 

Ensure that detailed records are kept of the selection process. These records can serve as evidence to show that all policies and regulations have been followed to produce a fair outcome in case of any disputes or complaints. 

A good property management team will ensure that they stay on top of any and all changes in regulations and legislation with ongoing education and training. 

Lease agreements and what to include

A lease agreement is a legally binding document between an investor and a tenant that entails all the terms and conditions for the period of the agreement. Having all the information helps to provide clarity and protection for both parties. A lease should include: 

• Names of those entering the agreement
• Rental amounts, due dates and any penalties 
• Type of lease - fixed or periodic 
• Length of lease - including start and end date of occupancy 
• Upkeep, maintenance and prohibited actions 
• Termination and renewal conditions 
• Homeowners' responsibilities and access 

Including these elements ensures the lease agreement is thorough, clear, and legally sound, protecting both the homeowner and tenant from potential disputes.

If you are looking for a property manager for your investment property, NXTGEN Property are local property managers with over 30 years of local knowledge and experience and are supported by a qualified and dedicated team to manage your property.