| Before you rent: Tips on securing a good, long-term tenant |
- Know the benefits & “selling features” of your property that are most likely to appeal to prospective tenants, then point out those benefits and make sure it will suit their needs.
- Finding a new place to live can often be time consuming for a tenant, so be prepared to be flexible in your availability to show the property after hours.
- Know how much it will cost a tenant “in total” to move in, so you can ascertain that they can afford to “move in” – as opposed to just being able to afford the rent payments. Remember, they will need the cost of the bond (usually 4 weeks rent in advance) before moving into the property, plus the rent (usually 2 weeks rent in advance) – so a new tenant will usually have to make an initial payment equivalent to about 6 weeks rent in advance. Don’t forget to mention that a prospective tenant also needs to allow for additional expenses such as removalist costs, truck hire, connection of gas, electricity, telephone (including internet access and pay TV if required).
- Know the locations of nearby facilities, nearby bus routes, shopping, schools, parks, restaurants, movie theatres, sporting complexes, universities. Is your property close to where they work or study, or to their family and friends?
- Be clear on what is included (eg. Number of car parking spaces, whether pets are allowed, how many people can live in the rental property, etc).
- Be willing to consider any special requirements or needs from a prospective new tenant. They might request something additional, such as air-conditioning, or a dishwasher, which they are willing to pay an increased rent for and stay longer overall.
- Rental agreements are usually on a minimum 6 month basis and the tenant will need to sign a lease and they will have to make an initial payment equivalent to about 6 weeks rent (ie. Usually 4 weeks rent as bond, plus two weeks rent paid in advance). Make sure that your new tenant carefully reads all the paperwork that you have prepared that they will be required to sign, and ensure that you understand it. You will need to understand the paperwork so that you are in the best position to explain any questions the tenant has before signing.
- The tenant’s Bond is like a deposit. It will be returned to them once they leave (as long as they have not caused any damage to the property beyond normal use – often referred to as “fair wear and tear”), so it is important for you to prepare a thorough and detailed Property Condition Report (PCR) which notes the condition of the property at the time the tenant is moving in (and details any pre-existing damage and/or wear and tear). This is given to the new tenant at the time they move in, and they need to sign and return this document to you. It forms the “legal basis” of the condition of the property when the tenant moved in and will be compared to the condition of the property when they move out. The PCR determines the basis for any deductions from a tenant’s Bond when moving out. Establishing clear and fair expectations from the very outset sends a positive message to the tenant and is always a good basis to continue the relationship in a positive way.
- All the above applies whether you are renting out a house, townhouse, apartment or unit.
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