Property Management FAQs
How much rent can I receive for my property?
To determine how much rent you can charge for your property, you will need to assess the market rent - in other words, how much money similar properties in your area are renting for.
A good place to start is to carry out some research online. It is important to pay attention to the requested prices, as well as how long the properties stay on the market at those rates. Your local LJ Hooker property manager can provide you with plenty of useful information on comparative rentals in the area.
How long is a typical lease?
In Australia, standard lease periods are generally either six or 12 months. While longer lease terms are possible, you are likely to find a smaller number of tenants who are willing to commit to this time.
You may wish to speak to your LJ Hooker property manager about the different advantages of each lease length and help you determine how to maximise your return most effectively.
Can I increase the rent during the lease period?
During the term of the tenancy, rents can not be increased. Unless there is a specific term written into the tenancy agreement at the commencement and at the time, the appropriate notification is given. Once the lease has expired, or is coming up to expiry or a new lease is being negotiated, it is the perfect time to discuss a rent review with your property investment manager. Keep in mind each state and territory has different legislation they must abide by, please speak to your property investment manager about your local legislation and requirements.
How much should I increase the rent by?
Different states and territories have different legislative obligation in the amount rent can be increased at any one time. Speak to your property investment manager about your current local rental approximation and discuss the gap with the current rent and what you can execute legally. A guideline to work with is, keep the rest a fraction below market opinion. That way you will maximise your return, while balancing the recognition of a good tenant - you don't want to lose a good tenant for a few dollars and then incur additional wear and tear on the Property when the tenant vacates, possible vacancy, any marketing and / or letting fees associated with re-tenanting the property.
Is it mandatory to enlist the services of a property manager to manage a rental property?
While you are not required to have an rental agent manage your rental property, it is important to know that private owners are bound by the same legislative requirements that also apply to real estate agents.
This means that if a private owner was found to be in breach of the Residential Tenancies Act, they could be subject to the same disciplinary action - including potential fines - that would apply to real estate agents.
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