Buying A Property.

When is the best time of year to advertise my property for rent?

A fixed term agreement has a definitive start and end date while a periodic tenancy is known typically as a ‘month-to-month’ arrangement and does not have an end date. There are pros and cons for both a fixed term and a periodic agreement that you should consider as they may affect you as the landlord.

Fixed-Term Agreement

• Provides security and peace of mind knowing you have a fixed income for the period of the Agreement.
• Enables you to forecast and budget accordingly for any expenses or refurbishment required.
• Rent increases can be written into Tenancy Agreements.
• The Term of the Agreement can end at a time where the market is at its premium, therefore giving you greater control.
• To end a Fixed Term Agreement, a Notice to Leave of 2 Months is required to be provided to the Tenant. A Tenant cannot leave prior to the end of the Fixed Term but does need to give 14 days Notice if they are ending the Agreement.

Periodic Agreement

• The Tenant is in control and can dictate when they wish to end the Tenancy.
• The Tenant is not committed to a period of tenancy other than the period required for the notice.
• The option of increasing the rent is often missed as the Tenancy continues unless the Agency is particular about following through with monitoring all Periodic Agreements.
• Tenant may terminate the Tenancy at a ‘slow’ time therefore the Property will be vacant longer. This equates to loss of income to the Lessor and to the Agent as commission income.
• The Lessor/Agent has to provide 2 Months Notice to Leave without grounds if vacant possession is required.

Key Takeaways: Consider your objectives for your investment property before deciding which term is best for you. While a periodic agreement may provide you with more flexibility should you be considering selling or developing the property, a fixed term agreement will provide you with more piece of mind, security and control of your investment. Discuss your investment plans with your property manager and should you not have any immediate plans that require vacant possession of the property, considering aligning the lease term with the peak rental periods throughout the year

A fixed term agreement has a definitive start and end date while a periodic tenancy is known typically as a ‘month-to-month’ arrangement and does not have an end date. There are pros and cons for both a fixed term and a periodic agreement that you should consider as they may affect you as the landlord.

For landlords, finding the right tenant is crucial to the success of your property investment. The right tenant is one who pays their rent on time and takes care of your property as you would. It’s important to remember property features that appeal to a tenant are not necessarily the same as features you would look for yourself. Therefore, you must consider the type of tenant that is suitable to your property and market it accordingly. Factors that may affect the type of prospective tenant who applies for your property may the time of year, presentation of the property, advertised price and the systems and processes in place to handle enquiry to qualify each enquiry. Once you have secured a suitable application, a thorough tenant screening process should always be conducted including full rental history, tenancy database checks, references, rent payment history and condition of their previous rental properties during routine inspections. Key Takeaways: When it comes to applications from prospective tenants, quality is better than quanitity but you can certainly have both by looking at the factors above.

It’s the questions every investor wants to know. While starting with search of comparable properties on sites like realestate.com.au or domain.com.au is great to see what similar properties are being advertised for, it’s should not be the deciding factor of how your property is priced when going to market. The agency you appoint to manage your property should have access to property data software that provides them access to produce a Comparative Rental Analysis (CRA) prior to your property being advertised for rent. A CRA will show exactly what similar properties rented for and how long they took to rent. More importantly this report will show any difference between the original advertised price and the price it eventually rented for which can sometimes be quite a gap. Key Takeaways: While current rental listings provide a view of competing properties to yours, they should not be the only source of data for how you price your property for rent. How much a property is advertised for is not always the price it rents for and sometimes the difference can be quite significant. It is important to also consider how long comparable properties are taking to rent, especially if your property is vacant. Combining the data from a Comparative Rental Analysis (CRA) that your property manager has provided along with current rental listings is key to pricing your property to rent for the maximum amount the market is prepare to pay for it at that time.

The length of time a rental property is on the market will reflect how it is priced to comparable properties, how it is presented to prospective tenants and the demand from the market for properties such as yours. If your property is vacant it may require a different strategy to that of a property with a tenant already in place in order to minimise vacancy periods. Your property manager should advise you of the current ‘days on market’ figures for their clients and for similar properties to yours in the current market so you can discuss with them the best approach to pricing your property in order to secure a suitable tenant in a time suitable to your needs. Key Takeaways: The price and demand for properties similar to yours along with the pro-activeness of your property manager will determine how long it takes to secure a suitable tenancy application for your property.

Open inspections used to be considered a mandatory part of renting any property, but are now not quite as common as they used to be. In an open inspection, a specific time and date is set for prospective tenants to drop by and walk through the property for a viewing. This event is publicly advertised, so that interested tenants can plan ahead and arrive with questions. The downside to this type of viewing is that it opens up the doors of your property to anyone who wishes to come through without you or your property manager having much idea of who is attending. Inspections by appointment are becoming more popular than open inspections as tenants can be screened ahead of time to ensure that they are serious and trustworthy. Many property management businesses now have software, such as Inspect Real Estate, which allows a tenant to book an inspection based on their own schedule and the property managers availability. The property manager is then provided with the prospective tenants name, phone number, email address and booking time. While inspections by appointment are based on a single party registering for an inspection, your property manager may allow other interested parties to register for the same inspection time or choose to cap the amount of people they show through the property for security reasons. If you have a tenant in place already it is important to respect their privacy as well and ensure that the transition of tenants is as smooth as possible. Key Takeaways:

You should choose an inspection method that best suits your needs. It is important to consider the privacy of your current tenant, the security of your property and safety of your property manager when you decide which method is appropriate.