Choosing to share your home with strangers isn’t an easy choice, and there are a few things you need to consider before renting it out. To make the process as seamless as possible and to ensure your investment is well-protected, keep these important tips in mind.
1. Get insurance!
Landlord’s insurance is a must to protect you and your home from unforeseen damages. Landlord’s insurance generally includes things like loss of rental income and damage to your property and contents by the tenants, and should be taken out on top of your home insurance. If you rely on the earnings from your rental income to support you, consider taking out rent default cover. Insurance companies like Allianz offer this as an optional additional cover on their Landlord’s Insurance policy, and it gives you financial peace of mind should your tenants fail to pay on time.
2. Team up with a real estate agent you trust
When renting your property, there’s a good chance you won’t be stepping foot in it for the entire duration of the lease. So you need to hire a real estate agent that you can rely on to ensure your home is well looked after by your tenants. You also need agents you can trust to act quickly and responsibly on your behalf in the unlikely event of a major problem, like a burst pipe. When choosing the right real estate for you, larger agencies like Century 21 have the added benefit of greater resources, numerous branches (so you have more chance of aligning with the perfect real estate agent for you) and extensive local knowledge.
3. Consider making your property pet-friendly
Your immediate inking may be to list your property with a ‘no pets allowed’ clause because you’re worried about it getting damaged, but it’s worth considering all the pros and cons before you jump to a snappy decision. Due to the limited number of properties that allow pets in Australia, you may be able to ask for a higher rental cost if you list yours as pet-friendly. As for your concerns about damage, you can request a pet bond and may include certain conditions in the lease to protect yourself. Another thing to keep in mind is that pet owners are known to stay in a home for longer, so you’ll have guaranteed rental income for longer.