The Steps to Renting Out your Property - Part 1

You have a property that you want to rent out. Great! How do you go about doing that? It may seem a little overwhelming at first, but it's not too hard when you have a plan.

So here's a plan for you:

1 -- Find the Right Property Manager:
Property Managers do more than just collect the rent and hand over the keys, they may do some or all of these, so make sure you know what services they provide:

• Advise on setting rental rate
• Market the property
• Screen tenants
• Lease the property
• Provide a Tenancy Agreement
• Collect rent
• Collect and lodge the bind
• Provide comparable property information
• Inspect the property
• Pay utility accounts
• Provide regular financial statements
• Attend court on your behalf if a dispute with a tenant arises
• At end of tenancy, finalise bond and inventory with the tenant.

Yes property managers charge money for their services, but that's not a bad thing, in fact you can make more money using a property manager than without one.

When you look at property managers, make sure you interview them well. They are going to be responsible for a large investment of yours, you want to know you have the right one. Here are 11 Questions to Ask Your Property Manager. 

2 -- Make sure you have Landlord Insurance!

You would've heard about 'nightmare tenants' and your property manager is there to help you minimise the risk of allowing dodgy tenants in your property. But it is better to be safe, and cover yourself in case something does go wrong.

Landlord Insurance will insurance against

• Intentional damage to the property by tenants and their guests
• Theft by tenants and their guests
• Loss of rent if tenant defaults in payments
• Liability, including claim against you by the tenant
• Legal expenses incurred.

Make sure you go through your insurance policy as each company will have different features. Your property manager will recommend or help you narrow down your research.

3 Taxes, Taxes, Taxes

It is a dirty word, but there are taxes to be paid . Make sure that your accountant is familiar with accounting for property investors. A depreciation schedule will be vital in the profitability of your property.

So that is the first 3 steps, the final 3 steps you can read about next time.