Leasing Out

Market Insights
9 years ago
2 minutes

Your apartment has been purchased and subsequently built - so now you want to rent it out, to get some revenue flowing.

Finding a tenant isn’t easy - so you may as well pay someone else to do it.

Using a leasing agent will allow you to worry about your other properties, your other job, or your family.

In order to gain interest and traction on your apartment, a leasing agent will use online advertising, putting the apartment on daily rental lists, lease boards and rental appraisals. 

Who actually moves in?

A leasing agent will run a detailed and thorough personality, income and past-rental history check on any possible candidates before they are passed on to you to choose. This way, when you’re picking, you won’t have to worry (as much) about who you are leasing your apartment to.

Following usual rental practice, a bond will need to be paid, which will not be held by you. The bond will be paid to, and therefore held by, the Residential Tenancies Bond Authority (RTBA). This bond will be held by the trust until the contract ends (ie the termination of the tenancy). In accordance with law and legislation, rental agents must require one calendar month of rent for properties under $350 p/w, for all properties over $350 p/w, 5 weeks rent in advance is required for the bond. 

Where and what do I need to sign?

The leasing agent who got you to this process will have the contracts and Lease Agreement ready for you to sign. Included within this will be a standard set of conditions. Importantly, as the owner of the property, you are allowed to add your own set of conditions on top of the existing ones that can be negotiated between you and the prospective tenants. These conditions can include things such as pet allowances.

The Condition Report

You will receive a condition report that outlines and provides evidence (in both word and image) of the existing condition and state of the apartment. This is forms as part of the Lease Agreement, and should be taken very seriously. The tenant, upon inspection is allowed to add and subtract from the leasing agents report, however, usually photographs need to be provided as well.

This is done to compare the condition of the apartment before the tenant moved in, and when the tenant leaves the apartment - wear and tear is taken into account.