As a foreign investor in the Australian real estate market, it is important to make sure that the property you have purchased starts earning your money back. There is no better way to do that than to lease your property in Australia. But if this is your first time handling an investment in the Land Down Under, the leasing regulations and processes may seem like a daunting task.
Contents of this page
- Hire a Good Property Manager
- Update Yourself with Anti-Discriminatory Laws
- Schedule Regular Maintenance
- Know Your Tax Obligations
- Tips on How to Successfully Lease Your Property in Australia
- Leasing Rules per Region
Hire a Good Property Manager
Hiring a property manager is not just simply an additional expense; it can also be considered an investment. Hiring a good property manager will make your job easier. Although you will be paying them a fee or a percentage of the lease, you will be able to save time, money and effort. Eventually, it will feel like your investment is working on its own.
But finding the right property manager can be tricky, so it would be best to be armed with proper information when choosing to hire. Here are some things you should look for when hiring a property manager:
- Hire someone who knows the existing real estate laws and is confident in applying them when making important decisions on your behalf.
- Hire someone who can pay attention to small details about contracts, as they are your duly appointed representatives.
- Hire someone who will aggressively open your property to the potential tenants and make a good deal with them immediately.
If you are not good at speaking English, we can help you locate property managers who speak fluent Mandarin or Cantonese. This way, you will be able to communicate your specific requirements when choosing a property in Australia.
You would also need to discuss your communication lines and payment options with the property manager. How often should you be updated about the status of your property? When and how would you be able to receive the rental payments? These are just some of the questions that you need to ask the letting agent that you hire.
Read our article on Hiring Property Managers in Australia for an in depth guide in finding the right one for your business.
Update Yourself with Anti-Discriminatory Laws
Before you lease your property in Australia, you need to know the existing anti-discriminatory laws that protect potential tenants in discriminatory situations. You need to make sure that the property managers that you are going to hire are abreast with these laws.
According to Australian state and federal anti-discrimination laws, you cannot refuse potential tenant because of their religion, sex, race, age, marital status, sexual preference, nationality, if they have children, impairment and disability, and pregnancy.
Here are the only things that your property manager can ask potential tenants:
- The number of people who will use or live inside the property.
- Their ability to pay the rent on a weekly or monthly basis.
- Their ability to maintain the cleanliness and the condition of the property before they rented it.
Schedule Regular Maintenance
It is no secret that Australia is home to many insects, plants and wild animals. Most of the time, they find their way inside the property, thus compromising its condition such as cleanliness and structural integrity.
If your real estate property is not well maintained, it will surely keep potential tenants away. The best way to deal with this is to regularly schedule maintenance to check every inch of the property. In addition, if your property passes a thorough building inspection, your tenants will have peace of mind in renting it.
If your property has a swimming pool, you also need to keep it checked in order to determine its current condition. Your property manager has to locate a respectable pool maintenance company to make sure that the facility is compliant with existing local council laws and can be safely used by the tenants once you turn over the keys to them. Some regions require landlords to provide certification that the pool is safe for use.
Know Your Tax Obligations
Once you have purchased a property in Australia, you already have tax obligations. Your next step would be to secure an Australian Tax File Number (TFN). Any income derived from your property, such as rental income, must also be reported. Whether the actual rental payment has been paid to you or not, it is still considered taxable income.
Tips on How to Successfully Lease Your Property in Australia
Not all properties in Australia have the same value. If you have purchased a property for quite some time now but your property manager cannot successfully lease it, here are some things that you need to carefully evaluate:
Is the rent too high?
The rental rate is always the primary consideration of tenants when choosing a property. If your rate is way higher compared to other properties, your chance of getting a tenant becomes Talk to your property manager and set a competitive price range in order to attract potential tenants while keeping your profit within perspective. An indicator of a good property manager is knowing the current rental market value of a property. If your property manager doesn’t know this, it might be time to find a different agent.
Is there are a high vacancy rate in your area?
If there are plenty of vacant properties in your area, the tenants will definitely have plenty of choices as well. If there are many choices, potential tenants are in a stronger position to negotiate a better deal.
Does your property manager have a good presentation skill?
If the property that you want to lease is poorly presented to the potential tenants, you will definitely have a hard time making a profit. Make sure that your property manager can skillfully present your property in order to attract more tenants. Make him demonstrate his presentation to you so as to evaluate his potential.
Is the property situated near transport and local facilities?
Tenants consider the distance of the property to key facilities such as the market, hospital and workplace. If the property that you would like to lease is situated near these places, then you will have no problem marketing it to potential tenants. However, if it is located very far from these places, then you and your property manager need to come up with a good plan to convince tenants to choose your <property.
Leasing Rules per Region
Every region in Australia have their own leasing regulations, aside from the national laws already being implemented. You therefore have to keep abreast of the specific rules in the location of your property to successfully rent it out. For more information on specific tenancy requirements per region, visit these links:
- Leasing Rules in NSW
- Leasing Rules in QLD
- Leasing Rules in VIC
- Leasing Rules in South Australia
- Leasing Rules in Western Australia
- Leasing Rules in Tasmania
As an owner, it's your job to make sure that your property is in top shape. Leasing your property is easy if you have a good coordination with your property manager. Communicate regularly with him to keep up with essential updates in the real estate market scene.
If you need help in finding the right property manager for your investment, feel free to send us a message.