3 things to consider before renting out your property

By HBF

3 minutes

20 November 2020

Couple renovating their place

The Australian dream may be to purchase your own home, but perhaps the even greater Australian dream is to have an investment property up your sleeve. While it can be overwhelming at first, renting out your property can be a great way to earn extra income which you can use now or save for the future.

If you’re entering the rental market for the first time, here’s three things you should consider before renting out your property.

  1. Decide who will manage the property

  2. The first thing you should decide is who will be doing the legwork and managing the rental property for you. Managing a property takes some effort, so you should consider if you want to hire a property manager or agent to perform the tasks for you, or if you’ll do it yourself.

    Option 1: Property manager/agent
    For a fee, a property manager or agent will be able to assist with:
    • Finding, screening, managing, and communicating with the tenants
    • Advertising the property for rent and facilitating viewings
    • Setting, adjusting, and collecting rent
    • Evicting tenants and dealing with tenant issues, and lease terminations
    • Managing maintenance and repairs at the property
    • Managing property paperwork and preparing rental agreements

    Pros: Having a property manager will save you time and hassle. You won’t have to deal with the tenants directly, but you still give the final go-ahead on big decisions.

    Cons: You will have to pay an ongoing fee to your property manager or agent.

    Option 2: Do it yourself

    While you will likely save money, if you decide to do any of the above tasks yourself, you’ll need to have a good understanding of them so you don’t miss anything. Some of the things you’ll need to be across include setting a fair rental price, keeping rental paperwork in order and making sure your tenant contracts don’t have any loopholes.

    Pros: You’ll save cash and will be in the nitty gritty detail of how your property is managed and cared for.

    Cons: Managing things yourself may dig into your personal time and requires some industry knowledge to help you make the right decisions.

  3. Spruce up your property’s appearance

  4. If you’ve ever looked at property rentals online, you’ll know how quickly people judge a house based on first looks! The rule of thumb is, the better cared for and maintained your property is, the better chance you’ll have at getting the tenants you want for the price you’re after. So, let the spring cleaning begin!

    Some things you can do to make sure it’s appealing for new tenants include:

    • Renovating areas which appear dull, old, or run down
    • Repainting
    • Upgrading appliances
    • Adding furniture, accessories, wall hangings or fittings
    • Gardening and plants
    • Full clean, including windows and carpets

    In terms of safety, it’s important to perform any maintenance and repairs including:

    • Checking that smoke alarms are working
    • Ensuring fire extinguishers are in place
    • Arranging for pest control to come over and do a once-over of the property

    We know this sounds like a lot of work, but a fairly basic clean up could see you reaping the benefits in no time!

  5. Get landlord Insurance

  6. As one of your most valuable assets, it’s important to know your property is covered for the unexpected – especially when you’re entrusting strangers to care for your home. That’s where landlord insurance comes in.

    Landlord insurance will help protect your back pocket should something go wrong at your property or with your tenancy. With HBF Landlord Insurance, you can get cover for the property itself, in case of fire, storm or theft.

Get a quote for landlord insurance from HBF

With comprehensive cover options, including optional added extras such as loss of rent cover, HBF Landlord Insurance can help protect your investment.

Get a quote in minutes

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Disclaimer

~ We will not cover theft by a tenant or their visitors.

+ Optional cover.

Insurance issued by Insurance Australia Limited ABN 11 000 016 722 AFSL 227681 (IAL), trading as CGU Insurance. For full policy details please consider the Product Disclosure Statement (PDS) available at www.hbf.com.au. This is general advice only and does not take into account your personal circumstances. You should consider the PDS and your personal circumstances in deciding whether to buy or hold these products. HBF Health Limited ABN 11 126 884 786 AR No. 406073 (HBF Health), is an authorised representative of IAL.