When you own an investment property which you rent out for an income there are a lot of things that need to be considered and planned for. It is never quite as easy as finding a tenant signing the up and living happily ever after. There are a lot of things that need to be considered and planned for, and if the buy to rent space is not one that you are familiar with, then there may be quite a few costs or actions that completely blindside you. If buying a place to rent out is on your radar, here are a few things that you might want to think about.
How you hand it over
Make sure that when you hand the property over to the tenant, that it is in pristine condition. It must be spotlessly clean, and everything should be in working order. In short, it should be in the condition that you would want it to be in if you were moving in. Make sure that everything is documented – a complete inventory, with photographs included, so that when the lease comes to an end and your tenant wants the rental deposit back, there are no areas of ambiguity. It is usually a good idea to get into a company that specialises in bond cleaning. A simple online search for something like ‘cleaning services South Melbourne’ should provide you with some good leads and you can take it from there.
Don’t be bullied
Don’t let your tenant get too demanding. If they have been there for a month or two and they are suddenly complaining about the state of the apartment, then pop past for a visit. Often tenants will wait a month or two and then start to complain – they want a new geyser or kitchen units, or they don’t like the carpets. Whatever it is, remember that the rental is based on the condition of the unit. So sure, you will be happy to install new kitchen units, but then you must also put it to them that the rental will increase. They can’t expect five-star luxury at one-star prices.
Don’t get involved
It is never a good idea to get emotionally involved with your tenants. The state of their family’s health, their employment situation or anything else should be irrelevant to you. It takes a hard person to ignore pleas of poverty or hardships if that is what befalls your tenant, but the truth is, if you are suckered into their issues you will end up paying the price. So, don’t get involved and don’t offer leeway with the rental. It needs to be paid by the due date or they need to be charged penalties.
Unless you have a lot of surplus furniture it tends to be better to rent out apartments unfurnished. Furnished spaces work well for short-term deals or Air B&B, but your goal should be to secure long-term business arrangements. And people looking for long-term rental deals tend to have their own furniture already.