Listing your property on the rental market for the first time can be an extremely exciting and daunting prospect. From the initial cleaning, preparation and meeting minimum property standards to setting the rent, advertising and vetting applicants, there is a significant amount of red tape and hoops to jump through for Rental Providers.
To help get you started, our specialists at Dynamic Residential have broken down everything you need to know on how to rent your property out for the first time.
Preparing to Rent Out Your House
It is important to ensure your property is in good repair, is safe and presents its best to attract the best quality renters and achieve the highest rent the market will support. If your property is run down, requires maintenance, doesn’t have amenities such as heating / cooling or isn’t clean, this can deter potential renters and significantly reduce the rental value of the property.
Our agents will provide you with recommendations tailored to your property on actions to take to ensure your property is attractive to potential renters.
Disclosure requirements and Meeting minimum standards
On the 29th March 2021, the Victorian government introduced new legislation outlining a comprehensive list of minimum standards for rental properties, and the requirement to provide renters with a disclosure statement before a new lease is entered. Further to this, there is now also a requirement to ensure regular gas, electrical and smoke alarm safety checks are completed on the property. Failure to meet these standards, complete the safety checks, and provide the disclosure statements can result in fines to rental providers of up to $10K and have their name listed on a public blacklist of non-compliant rental providers and agents.
CLICK HERE to access a full list of minimum standards.
These compliance requirements can be daunting to say the least. Dynamic Residential has appointed specific industry professionals and has developed streamlined processes with them, to ensure your properties are compliant and attended to, as soon as possible.
Conducting an entry condition report
It is a requirement under the Residential Tenancies Act that a renter is provided with a detailed condition report when they collect the keys to move into a rental property. This is a vitally important document to establish the condition a property is provided to a renter in and avoid any disputes when renters vacate.
The condition report provides protection for both the rental provider and the renter. Without a condition report, any dispute or claim for damage or cleaning at the end of the tenancy will be near impossible to substantiate.
The condition report needs to be detailed, outlining very specifically the condition of every surface, fixture, fitting and appliance in the property. A comprehensive number of photos and/or videos showing the condition of the property should also be included.
Once provided to the renter, they will then have 5 business days to add their own comments and photos to the report before signing and returning the completed document.
The task to complete one of these reports is time consuming and another reason to engage Dynamic Residential to manage your property. We use the most up to date technology to ensure the condition of your property is comprehensively documented.
Explore Landlord Insurance
As your property is likely one of your biggest investments, it makes sense to ensure you have adequate insurance in place. A standard building or home and contents insurance policy will not usually provide cover for loss rent, or renter and pet damage. As Real Estate Agents, we are not licenced to provide insurance advice. Rental providers should consider a suitable landlords insurance policy themselves that will cover losses related to their renter or tenancy (Refer to the providers PDS and FSG).
Once a policy is in place, our Agents can assist rental providers with lodging any claims where required.
Research Where to Set Your Rent
Usually, most rental providers are aiming for the rental income of their property to cover the property expenses and provide an addition income stream. As with any market, the rental value for a property is driven by supply and demand. Other factors affecting the rental price typically include: proximity to amenities (shops, public transport, dining, motorways), size of property inside and out, how much (or little) has the property depreciated cosmetically, views, amongst others.
Understanding the current rental market and having access to a database of recent comparable results is key to ensuring your property is priced correctly and leases quickly.
Our team at Dynamic Residential are experts in the Melbourne property market and have access to data to help us design a pricing strategy that will ensure your property leases for the highest price the market will support.
Building a Marketing Plan
A proactive marketing strategy is what will make the difference in whether your property leases quickly or ends up costing you significant amounts in vacancy. Your property needs to stand out to potential renters in the market amongst the hundreds of other listings in the area.
Dynamic Residential have developed a 28 day leasing plan that has been designed to ensure your property leases at the highest price the market will support and minimise, if not eliminate any vacancy between renter.
For more information on how to rent out your property for the first time, please contact our friendly team at Dynamic Residential today.
Finding the Ideal Renter
Renter selection is a critical step in the process of renting out your property. Putting the wrong renter in your property can have disastrous consequences with costly price tags.
Understanding the demographic of renters likely to be interested in your property is also important to ensure you have realistic expectations and avoid potential vacancy periods.
As property managers we have a keen understanding of your preferred renters, and work to actively screen them as they visit for inspections. Moreover, we have the resources to verify their details quickly after making an application, providing critical insights into their rental history, income level, and other influencing factors in your decision-making process.
