Renting out your property can be a great way to build long-term wealth and financial stability with consistent cash flow, if it’s done right. Property Investment is a very popular form of investment and has the potential to provide many long-term financial benefits for investors.

Learning to navigate the rental market can also be stressful, so whether you’re a first-time investor looking to break into the investment market or keen to grow your portfolio, we have created a step-by-step guide to successfully rent out your property, grow your investment and maximise your return.

1. Understand your local market

Before you jump in headfirst, it’s important to do your research and understand the market you are thinking of investing in.

Have a look at

● What are properties renting for? - This helps set realistic rent expectations and estimate potential returns

● Who would your ideal tenants be? - are you targeting professionals, families, students? This will help decide things such as location

● What would they be looking for in terms of features and condition? - this can all impact appeal and rental yield

● Is there demand for the property? - are properties leasing quickly or sitting vacant? Is demand steady all year or fluctuate?

Doing your research upfront helps you buy with confidence, set your rent accordingly and overall it will set you up for success in the long term as a property investor.


2. Get Rental Ready

Once you have found the perfect addition to your property portfolio, it’s time to make sure it’s ready for the rental market.

Tenants are drawn to clean, functional and low-maintenance homes. To attract quality tenants and ensure that vacancy time is kept to a minimum, you will want to

● Ensure that the property is professionally cleaned - a clean property shows prospective tenants that the home has well maintained

● Repair anything broken or outdated - fix dripping taps, cracked tiles, faulty lights. This helps set the tone for how you expect the property to be treated

● Look at possible small upgrades - consider things such as a coat of fresh paint, security screens or air-conditioning

● Ensure the property meets all safety requirements in terms of smoke alarms, safety switches, etc - compliance not only protects your tenants, it also protects you and your asset

A little preparation goes a long way by presenting your property at its best, you’ll attract better tenants, reduce vacancy time, and set the tone for a smooth rental experience from day one.


3. Understand Your Legal Requirements

Becoming a property owner also comes with its obligations and legal requirements. Every state and territory has its own legislation around property ownership and leasing. You will need to have an understanding of the requirements for the state your property is in, such as

● Tenancy agreements
● Bond lodgments
● Safety and compliance
● Notice periods
● Rent increases and inspections

It’s important to make sure you're across these obligations, or even better, have a great property manager who is.

 

4. Find a Great Property Manager

Whilst it may be appealing to self-manage your property to save money, it can also be incredibly stressful. It requires a lot of time, knowledge and excellent communication skills.

Finding the right property manager can help to reduce the stress, take the day-to-day management off your plate and help to maximise your return on investment.

They will be able to

● Advertise and show the property as required
● Use their tried and tested processes for screening tenants
● Take care of rent collection, maintenance, and carry out inspections
● Ensure you are always following the regulations and are legally compliant
● Take care of any issues on your behalf

Good tenants are worth their weight in gold and having a great property manager who can screen them properly will go a long way in minimising the stress of owning an investment property. They will be able to

● Use a formal application process
● Carry out reference and employment checks
● Review rental history
● Verify income

They will also ensure your asset is protected with a solid lease agreement that clearly states requirements such as

● The rental amount and due date
● Required bond
● Length of tenancy
● Rules and obligations for pets, maintenance, inspections, etc


Having an investment property isn’t just about collecting rent, it’s about quality management and long-term strategy. The key is to treat your investment like a business.

Looking to sell or rent your Home? Our Team can help