Ladybird

We have been asked by FIL to rent out his property for 6 months, but he does not want us to use an agent. If we look after the house for him and become landlords what are the basics I need to know to get us started?

I know this is a bit of a "how longs a piece of string" question! and I will be researching this more before we say yes obviously but can any landlords on here give me the basics / any advice, on whats involved as I'm not sure where to start!

LB

wanderingwombat

Technically, aren't acting as an agent (on his behalf)?

If it all went pear-shaped with the tenant it may be more hassle to you than it is worth.

I'd use an agent.

WW

linloo

Use an agent, honest, OH and I just bought our first investment unit and looked into this to keep costs down, but in the long run it really wasnt worth it. If somthing goes wrong it could be a nightmare. Good luck though

linloo

Get landlords innsurance for a start though, found that to be cheap enough.

shiftdelete

If you're determined to do it, check out the real estate website, tenancies act etc- I know in vic there's heaps of good info to help make your life easier.

It can get tricky when things go wrong....and they will go wrong.

The Bloke

Check this rental tenancy laws site out:
http://www.rentalagreementsdiy.com.a..._australia.php

saveme

I concur with the others - USE AN AGENT! Even if you are renting a place out to family or friends it's better to use an agent just in case they default or lose their job or whatever. Then you are at 'arms' length'. My unit in Surry Hills NSW has been rented out for over a decade now and I am happy with the service my agent provides - collecting the rent, paying all the bills, handling repairs, etc. They charge 5 per cent although it may be higher - closer to 10 per cent? (I think that is what I can expect to pay if I rent out my home in the UK?)

gillysm

You MUST find out your legal obligations as a landlord before taking this on with regard to making sure the property is legal, forms that must be given to tenant, warnings & notice periods for ending leases, inspections, maintenance etc.

Have a look at http://www.ocba.sa.gov.au/tenancies/forms.html and also be willing to
1. Advertise for new tenants, interview & screen them. Issue comprehensive entry condition report.
2. Keep a check on rent payments and chase the tenants up if they are late, possibly take to small claims court if they continue to not pay.
3. Carry out regular inspections, and final inspection (using entry condition report).
4. Draw up lease agreements.

It's not easy but it can be done, you just have to be aware of all the implications, your obligations, your rights and your tenants rights.

(Having said all that I wouldn't do it for my uncle/friend etc)

why

we rented out our house for 15 months to a friend of a friend and it went realy well without an agent she paid up every time and kept the place really well with no problems at all. but i guess we were lucky. and i think having an agent would be good unless you find someone like we did. good luck

gillysm

It can go well, there is an element of luck in it but primarily it's about screening new tenants and making sure you put in a good tenant. I self manage my own investment properties and have done for about 5 years. I haven't had a problem .....yet! But I did get my RE certificate to do it (personal choice) and I do treat it like a business.

why

if you do it yourself it's important to check your tenant out with their last landlord.it pays to do it in a professional way it's just being your own agent really.

saveme

It can go well as it did for you but what if your friend had become ill or lost their job? If they could not pay the rent but you were depending upon it to pay your mortgage you would then be faced with the problem of evicting a friend. That's why it's sometimes good to use an agent.

Nikki.P

Hi LB

I'm a Property Manager and can tell you first hand the nightmares that renting can cause the LL. I would if I had an investment property use an agent and I do it for a living. Glad someone already gave you the address for the OCBA Site, its full of great advice and forms you would need but honestly go with an agent. They will charge you two weeks rent to find you a new tenant and something between 8-10% for ongoing management costs, its definately worth it IMHO. Who needs the hassle? If you've got any questions, don;t hesitate to PM me and I'll help you if I can. oh and the LL insurance is a must...use Terri Scheer.

Nikki

stariston

For what its worth i entirely agree with fellow posters
use an agent makes it easier all round for both partys so
many horror storys from both landlord and tenant
dont go there

Ladybird

Thanks for the advice and links everyone, its starting to look like a whole heap of work and hassle which at the moment with a 7 week old baby I don't need!
Will talk to FIL again and see if I can persude him to use an agent I think.

LB