The Complete Landlord Handbook: How to Manage and Grow Your Investment Property
Successful real estate investors know that it is not just location or managing your finances that make a difference to your portfolio, but also how you maintain positive relationships with tenants. Strong returns come down to a combination of correctly pricing your rental, staying compliant, and working with an experienced property manager.
Whether you have just one property or several, managing your assets doesn’t have to be complex. To help keep everything running smoothly, we’ve put together a complete guide for landlords, with tips, practical advice and tools.
What are my responsibilities as a landlord
While the laws of each Australian state and territory vary slightly, there are some basic expectations for landlords and rental homes. Let’s look at them:
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That the property is fit to live in and meets health and safety standards – The property must be structurally sound, clean, and connected to essential utilities, including electricity, plumbing, and hot and cold water.
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Legal obligation to manage bond or security deposit – A bond or security deposit is held in trust and acts as security should your tenant fail to pay rent, cause damage to your property or breach the lease agreement.
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Management of maintenance issues – Repairs must be carried out in a timely manner, including addressing any health-threatening issues, such as rising damp.
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Decide on an appropriate rent – It is a good idea to know what similar leased properties within the same area are achieving in rent. Any increases must be carried out in accordance with state-based legislation.
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Respect the tenants’ right to privacy – Landlords cannot simply enter a property whenever they want; they must be respectful of their tenants. They must follow the strict mandated notice periods for routine inspections.
It is important to start the relationship with your tenant on a good note, so follow this check-list for more tips on how to make sure your investment property is rental ready.
How much rent should I charge
Supply, demand, and comparable listings are the best ways to check whether the rent on your investment property is in line with market expectations.
Any increase needs to be considered carefully to minimise vacancy periods. A reliable tenant who pays on time, respects the property and minimises maintenance issues could be seen as more valuable in the long term than simply achieving the highest possible fee.
Chat with your local LJ Hooker agent who can work out a strategy for your investment property and provide detailed market insights.
A rental appraisal is easy to organise and will help you gain a better understanding of the current conditions. To arrange, simply submit a form online or call your local LJ Hooker office.
How can I maximise rental yield
Your rental appraisal may highlight some cost-effective improvements to increase the returns on your investment property. For instance, it could be worthwhile adding an air-conditioning unit or built-in wardrobes. Many renters are happy to pay more for everyday comfort and storage.
The key is not to overspend on features that won’t increase rental yield or improve the value when it is time to sell down the track.
As you are not living at the property, any improvements should be carefully considered as an investment rather than to cater to your personal tastes. Think about what kind of features you’d appreciate as a tenant and whether you would be willing to pay for them.
As tempting as it may be to update to a sleek designer kitchen, a better alternative may be to replace cabinet doors or install new appliances. This will allow you to increase the rental amount, improve the property's appearance, and make it more attractive to a quality tenant.
What costs and taxes do landlords pay
Australia’s property tax system was overhauled in the 2026 Federal Budget, introducing the biggest changes in a generation.
Incentives for investors have been cut back with changes to the capital gains tax discount and negative gearing. Let’s take a look:
What is capital gains tax?
Capital gains tax (CGT) is added to your income tax when you profit from selling an asset, such as an investment property or shares. From 1 July 2027, the 50 per cent discount will be replaced with an inflation indexation system and a new minimum 30 per cent tax on real net capital gains.
What is negative gearing?
Investors can currently generally offset rental property losses against their wages or other income. It is attractive to mum and dad investors, as it has allowed them to reduce out-of-pocket expenses in the short term while generating wealth through capital growth in the long term.
From 1 July 2027, investors buying established residential properties after Budget night will no longer be able to offset those losses against wages. Those losses can instead be used only against future rental income or capital gains from residential property. Existing investors and properties purchased before Budget night will continue under the current rules until sold.
What if I invest in a new home?
Newly built homes will remain exempt from the changes to negative gearing to encourage more housing construction.
What other expenses will I need to pay?
Landlords pay for structural property maintenance, council rates and strata fees. Tenants generally pay for day-to-day utility usage, such as electricity, gas, and internet.
General upkeep of the property may depend on the lease term. Landlords are typically responsible for major tasks such as tree lopping or removal, looking after retaining walls and addressing issues such as pest infestation. Tenants are usually responsible for mowing lawns, weeding gardens and raking leaves.
The residential tenancy agreement will also determine who is responsible for pool maintenance and repairs. To prevent future problems, some landlords will hire a pool cleaner and a gardener.
Should I use a property manager
Investing in real estate can be a great way to build a secure financial future, but you need the right people behind you to succeed.
An experienced property manager takes the day-to-day stress out of being a landlord. They look after:
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Marketing
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Tenant screening
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Rent collection
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Routine inspections
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Maintenance
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Legal compliance
Importantly, these specialised real estate professionals act as a buffer between you and your tenant, helping to avoid any unpleasant confrontations. This includes everything from chasing up late payments to repairing any damage. They also stay up-to-date on any legislative changes that may affect residential tenancy, making sure your property is compliant.
LJ Hooker property managers work hard to ensure that your portfolio remains in tip-top shape, generates a regular stream of income and the best possible returns. They have access to a host of reliable tradespeople. This prevents small problems from turning into major, more costly ones. Even better, they have systems set up to handle problems 24 hours a day.
We’ve compiled the ultimate guide to finding the right property manager.
How do I maintain an investment property
The best strategy for keeping your investment property tenanted is to ensure it is well-maintained.
You want someone who lives in the home and treats it as their own. This won’t happen with a leaking shower, mould in the bathroom or a broken air-conditioner. Likewise, a tenant won’t stay long in a property where their repair requests are ignored.
The best solution is to establish a routine maintenance schedule, ideally overseen by a property manager. It includes regular inspections for the following:
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Checking plumbing fixtures for leaks
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Ensure smoke alarms are in working order
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Clear gutters of leaf debris
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Arrange an annual pest and termite inspection
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Service heating and cooling appliances
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Inspect the roof tiles for loose tiles or damaged flashing
It is also important to include an emergency repairs fund in your budget to cover expenses. The last thing you want is an investment property with a structural problem, sitting vacant with no funds to fix it.
Summer is often a good time to make sure your property is in good rental condition. You can find a check-list here.
Keep a detailed record of all receipts and invoices that may be included in your tax return. Speak with your accountant and review the official guidelines on the Australian Taxation Office portal.
Should I sell or hold my investment property
Property investing is usually a long-term strategy for building wealth. On average, Australians hold onto an investment property for eight to 10 years. It can take time and even an entire property cycle to maximise returns.
The decision to sell or hold on to your investment property is a personal one, influenced by your financial situation and future goals. It may be that life is changing with marriage, starting a family, divorce or perhaps with retirement.
Reasons to sell:
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There has been sufficient capital growth
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Potential to capitalise on demand in your area
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You are facing an ongoing negative cash flow
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Maintenance has become too expensive
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You want to change your investment strategy
Reasons to hold:
- You want to wait for future capital growth
- The investment is still relatively new
- You can comfortably cover expenses
- You are able to utilise tax advantages
- Rising equity could allow for portfolio expansion
It is always best to run through your plans with your accountant or financial planner. Your local LJ Hooker agent can conduct a property appraisal and let you know of the value in the current market. It is easier to decide with detailed market insights and an idea of what your investment property would fetch when sold.
You can also sell your investment property while it is being rented, but you need to be respectful and considerate of your tenants. We’ve put together some guidelines to help navigate this situation and keep everyone happy. You can find more information here.
What is rentvesting and is it right for me
Rentvesting allows people to rent a property in an area they want to live, close to work and family, while buying an investment property somewhere more affordable. It has been used as a strategic pathway into the property market for first-time homebuyers.
Equity built up through rentvesting is then used to buy a home down the track. However, the proposed tax housing reforms introduced in the 2026 Federal Budget could lead to a shift away from rentvesting due to changes to both negative gearing and capital gains tax. New builds, however, are exempt from the changes.
Median rent tool
Are your tenants paying too much or too little, you may be able to check the median rent using these webpages.
For investment properties in NSW go to: https://www.nsw.gov.au/housing-and-construction/renting-a-place-to-live/rent-check
For investment properties in Victoria go to:
For other states and territories go to:
https://www.tenants.org.au/resource/rent-tracker-postcode-tool
Property investing can help provide financial security for the future, but you need the right people to guide you.
This starts with talking to LJ Hooker sales agents in your target area. They will help identify the best investment property locations in Australia within your price range and provide detailed market insights.
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