We certainly don’t have the largest real estate portfolio in the world though through trial-and-error have compiled our eight top pointers in getting your rental property running smoothly. Just.For.You.
Unless you know and trus t the tenant (really well) then assign a property manager for around 8.5%, plus one week’s rent. Note this rate can (often) be negotiated lower.
Take out a landlord insurance policy that includes contents to cover things such as carpets, curtains etc. We use Suncorp. They Rock.
Take note of the dates you as an owner occupier vacate the property (if you lived there at all), and the date your new tenants enter. Also record what the interest paid to date is at these exact times with your bank. Pass this information onto your accountant to assist with their investment property number crunching.
Request an appraisal (in writing) of your property before your tenants enter the home and before selling (if you decide to do this in the future). If your home subsequently increases in value (capital gains) during this time than you need to pay tax on this difference. (Best not to guess figures and get professional appraisals ordered). We generally use a real estate agent recommended by the property manager at the time.
Order a depreciation schedule which will itemise and depreciate anything in the home whilst rented such as furniture. We’ve used Deppro a few times. Pass this report onto your accountant also.
Notify your council that your PPR (principal place of residence) is now an investment property. Unfortunately this normally means your rates may slightly increase.
If your property is individually metered and water efficient you can ask your tenants pay the cost of their water consumption. Best I leave it to you to research further here.
No news from your property manager doesn’t necessarily mean good news. Be sure to remain proactive and check in at least every two months (even if just on email). And inspect the premises in person annually if you can.
So there’s a kick-start in the right direction for setting up a solid investment property. Though the most important thing is you attract good tenants. If you missed our post on tenant tricks then get on it here.