Congratulations on purchasing a house or considering purchasing one! The following details everything you need to know about renting out your house. This guide will help you at every step, from understanding the market to choosing the right property manager. So grab a cup of coffee, sit back, and let’s dive in.
The First Step: Suburb and Property Research
The first step after buying a house is to conduct suburb and property research. This involves studying the market dynamics of the location, understanding the type of residents, and the demand for rental properties. This knowledge will equip you with the power to make informed decisions about your property.
What is the Difference Between Suburb and Property Research?
Suburb and property research can be divided into understanding the market dynamics (suburb research) and understanding who your potential tenants might be (property research).
Suburb Research
Investigate the type of market you have bought into. What’s the ratio of principal-home owners to property investors? Remember, a market with less competition is likely to enable greater returns. You might also need to consider your pricing strategy, rental increases, and your offering as a landlord. Free real estate sites can provide useful suburb data which can be compared and averaged out for a comprehensive understanding.
Property Research
Property research is about understanding the type of property you have or are buying, and the occupancy choices of people in that area. Insights like these can help you predict the demand and therefore, the return on investment.
Understanding Demographics and Lifestyle Factors
To make informed decisions about your property, you need to understand the local demographics: the average age in the suburb, the proportion of families to singles or couples, and whether it is more likely to attract single people, couples, or families. This, along with an understanding of the cost of living and ongoing lifestyle changes, can shape your rental strategy.
Supply vs Demand
A suburb that has low supply and high demand will always outperform a suburb with high stock and low demand. Rental prices are greatly influenced by the cost of living in the suburb as perceived by tenants. Always remember, owners and tenants see the cost of living from different perspectives.
Listing the Property for Rent
Once you understand your property and its surrounding dynamics, the next step is to list it for rent. Comparing your property with others on real estate websites can provide insights about a realistic rent for your house. You also have the option of calling up property managers in your area to enquire about the rental market.
Choosing an Agency
The final step to renting out your house is to find a good agency that can help to get the right renter for your property. But always keep in mind, the cheapest isn’t always the best. Your homework on different agencies will help you make this decision.
Keep your Property Strategy in Sight with Wealth Through Property
Remember, your rental property is a business. What type of renter are you after? Are you chasing higher yield or long-term tenants? Always keep your property strategy in sight to achieve the best results for your property. Learn, adapt, and grow. Happy Renting!
The Ultimate beginner’s guide to renting out your house– anywhere in the world, hopes to serve as useful tool for you in this venture. Good luck!
