TURNING YOUR FIRST HOME INTO A RENTAL PROPERTY
There are many advantages to holding onto your first home and renting it out, rather than selling it when you move on to your second home. If you have the financial means to make it work, your future self will be glad you did. Here are some things to consider.
What are the benefits of holding on to your first home?
The obvious benefit of holding on to a property is that you can start building an investment portfolio with confidence and a minimum of risk. You have already lived in the house, so you know its value and how much maintenance it requires. Plus, you’ve probably already invested significantly in it. From garden work to new carpets, and if you hang onto your first home you will continue to benefit from that expenditure.
You may only want to have one investment property. In that case, a home you know and appreciate is a simple way to ease into being a rental provider without too much hassle. And if it doesn’t work out financially, you can always sell it later on to release some equity.
How to turn your first home into an investment property?
The first thing to do is to talk to your lender and your accountant to go over the numbers and decide if it’s feasible and the right financial decision for you. Interest rates are coming down, while the demand for rental property is high, so right now it’s absolutely worth considering.
Here at Established Property, we are always happy to talk to people thinking of becoming rental providers. We have up-to-date information about rental demand, current regulations and what tenants are looking for in the Wyndham City region. We are across current rental rates and have a large database of potential tenants to draw on, as well as two shopfronts to attract walk-in customers looking for a home to rent.
What are the responsibilities of a rental provider?
Being a rental provider is straightforward for most people, but takes some planning and organisation. If you are starting out and don’t have a huge amount of time, we always recommend appointing a property manager to advertise widely, choose suitable tenants, set and collect rent, conduct inspections and organise repairs, and keep on top of all paperwork for your tax return. As property management fees are considered property expenses, these services are tax-deductible.
At Established Property, we manage properties for all kinds of clients, and we are up to date on your responsibilities as a rental provider, from installing safety features such as smoke detectors to the latest changes to the tenancy act.
We have a trusted pool of tradespeople to call on for all maintenance and repairs and can advise you on how to best present your first home to potential tenants. We have decades of experience in looking after properties for our clients and can save you much time and hassle along the way.
Are there any new COVID-related protections for tenants?
Not at present. It is again possible to evict tenants for non-payment of rent, which offers reasonable protection to rental providers. You can find out more about rights and laws around rental properties on the Victorian government website.
Turn your first home into your first investment
We truly are the one-stop-shop for this region and our many clients will attest to this. If you are looking for property management services and would like to know more about what we can offer, please give us a call. We’re always happy to chat with people wanting to explore their options, so please do not hesitate to get in touch.