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5 investor must-knows for renting out property

5 investor must-knows for renting out property

Author: Pranil Maharaj
Date: 2018-06-29

In the current market, letting out a property can be a good option as rental demand remains strong.

There are five key points landlords should make sure are covered before marketing the property for rent and signing any lease agreements. These are:

1. Make sure your property is letteable: Before letting out a property, homeowners need to ensure that it is in good working order and that it will be appealing to prospective tenants.

2. Establish a good working relationship with a rental agent: There are unfortunately many unethical people who take advantage of landlords and loopholes in lease agreements. The best way to avoid this is to contract the services of a reputable rental agent to help you through the process.

3. Ensure you have a solid lease agreement: Without a solid lease agreement that clearly stipulates the responsibilities of both the tenant and the landlord, as well as clearly outlining the terms and conditions of the rental, the landlord is leaving himself or herself open to exploitation.

4. Budget and plan well so that maintenance and financial shortfalls are covered: Often renting out a property isn't as simple as the money coming in covering the money that needs to be paid out. The profitability of a rental property also often depends largely on if there is a bond over the property and the levies/fees that need to be paid by the landlord.

5. Ensure that your tax and accounting is taken care of: As a rental property is an investment, it needs to be declared as income on your annual tax return. Certain expenses from running your rental property can also be deducted off the income. There are also other tax implications to owning a rental property such as Capital Gains Tax, which is due should you decide to sell your property.