I always dreaded tenants moving out. I had to conduct the final inspection to determine what needed to be fixed, cleaned or taken out of the bond. The worst part was the disagreements with the tenants. It didn’t take me long to realise a good condition report meant less disagreements and a well left property.
Getting ready to rent out a property? Here’s a tip:
Never give your new tenants the keys to your property unless the bond has been paid in full.
Harsh? Maybe. But for a good reason: regardless of how good the tenants are, it’s good peace of mind for you to make sure everything is set and ready to go for your property, including the bond, before the tenants take possession.
Way to go! You’ve placed your ad, held the inspections, received and screened the applications and finally chosen some great tenants. So what’s next? There are some important things to accomplish before you can hand over the keys. Setting the stage now, before your new tenants move into your property, is incredibly important to get right.
My friend Kylie is a busy lady. Between a successful career and a growing family she barely has time for herself, let alone friends. So I was surprised and pleased the other day when she called to invite me for a coffee.
She and her husband Tom recently bought a second house as their first investment property. Now they are ready to see some return on their investment, so she came to me looking for some guidance for self managing their property.
1. Failing to Ask for a Bond
This is a security deposit held in case your tenant doesn’t meet their obligations under the lease agreement.
2. Not Having a Lease Agreement
This is a legally enforceable contract that details the length of the lease, rent amount, and the condition the tenant should leave the property as stated in the condition report.Typically if you are managing a rental property on your own, you may only have the option of purchasing a generic lease agreement from your local news agency or online. The problem with these generic forms is the lack of important information, like state and territory laws particular to your area. We have free state specific templates for you right here.
As a property investor, it is vital that a number of tasks are completed before handing over the keys to your new tenants. By completing these tasks you are much more likely to have a smooth tenancy so It is important to set the scene from the beginning as to how the tenancy will unfold.
I have outlined the 5 most important things every property owner must do before handing over the keys to your tenants and having them move in.