Investing in rental properties is a great way of building wealth. You benefit from the rental yield you receive from your tenants, and you also benefit from the capital gains you can accrue as time passes and your property grows in value.
More Australians are taking out home loans with an intent to purchase a property to rent out. Figures from the Australian Bureau of Statistics reveal that the monthly value of lending to investors has been on the rise.
Regardless of whether you’re considering becoming a landlord or you already are one, you need to know what your rights and responsibilities are.
A LANDLORD’S RIGHTS
Even though the laws vary slightly in each state, your basic rights as a landlord remain the same. These include:
- To enter the property provided there is sufficient notice. For example, you can only make one inspection in any six-month period, but not within the first three months of the lease agreement and there must be at least 24 hours written notice
- To receive payment for renting your property. If your tenant falls behind, there are actions you can take to recover the funds
- To request a bond payment (maximum is four weeks rent) to cover the costs of any damage caused by the tenant or missed rent payments
- To charge tenants for utilities used on your property, including electricity, gas and in some cases excess water costs
A LANDLORD’S RESPONSIBILITIES
There are some responsibilities that you must uphold as a landlord, these include:
- Ensuring your property is clean, maintained and safe for tenants
- Payment of council rates and taxes
- Lodging the bond money with your state regulatory office
- Sorting out emergency repairs within 24 hours
- Allowing peaceful tenure – you can’t just drop in, even if it’s for maintenance
- Responding to any enquiries tenants may have in a timely manner
A PROPERTY MANAGER
A property manager deals directly with prospects and tenants, saving you time and worry over marketing your rental property, collecting rent, handling maintenance and repair issues and responding to tenant complaints. If you own an investment property and require the services of a property manager, contact the Ethan Property team to have a chat about how we can assist you.