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Renting Privately - How do I do it? What do I need?

Discussion in 'Real Estate' started by Sk3tChY, 14th Mar, 2012.

  1. Sk3tChY

    Sk3tChY Well-Known Member

    Joined:
    4th Aug, 2007
    Posts:
    358
    Location:
    Sydney, NSW
    I'd like to privately manage and rent one of my investment properties.

    Where do I start? What do I need? Do I need to fill out any paperwork or forms? Do I need to submit anything to any government departments?

    Any information would be appreciated, I have no clue really where to start looking.
     
  2. Jacque

    Jacque Team InvestEd

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    16th Jun, 2005
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    Location:
    Sydney
    Hi SK

    Get a leasing pack from your local newsagency or PO and best of luck!
    Ensure you know the legislation well in whatever state you're renting out.
     
  3. Sk3tChY

    Sk3tChY Well-Known Member

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    Location:
    Sydney, NSW
    So if I just go to a newsagency and ask for a "Leasing Pack" that will give me everything I need?

    Does it come with indsuctions?
     
  4. ashnita

    ashnita New Member

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    Location:
    sydney, NSW
    I recommend using an agent to start with. A good agent will set it up right for you and will also outline your rights and obligations.

    If you still want to manage it yourself in 6 months time. Then use the time while you have the agent to prepare yourself with the knowledge needed so you do not end up loosing.

    Good luck.
     
  5. Sk3tChY

    Sk3tChY Well-Known Member

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    Location:
    Sydney, NSW
    Hey Ash,

    Thanks for the reply.

    I've had the apartment rented out through a real estate agent for like 2.5yrs or more.

    The reason I'm wanting to rent privately and manage myself now is because I'll be renting to a friend of mine, so I know the property won't be damaged and I won't have issues getting paid etc.

    I figure I may as well manage the property myself now seeing as most of the risk is gone now.
     
  6. jabba_jones

    jabba_jones Well-Known Member

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    2nd Dec, 2007
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    Location:
    Sydney
    Hi Sk3tChY,

    I did the same thing 5 or so years ago, when my agent was having trouble finding a tenant. I just got a pack from a newsagent and lodged the bond.

    Best to do it by the book in-case there becomes a point when you're no longer 'friends'.

    You might also want to talk about a schedule of rent increases (possibly CPI based) so it doesn't become and issue and they see you as unfairly increasing the rent when it should be 'mates rates'
     
  7. Sk3tChY

    Sk3tChY Well-Known Member

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    Location:
    Sydney, NSW
    Thanks mate, all valid points.

    I've got a friend who is a real estate agent so I could potentially get all the paperwork from her for free, otherwise I'll just grab a pack from the newsagency.

    Thanks for the help guys, I'll let you know how things progress. :)
     
  8. Jamie M

    Jamie M Mortgage Broker

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    8th Apr, 2012
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    Location:
    Canberra
    Hi Sk3tChY

    As the others have mentioned - it's a $20 or so pack that can be picked up from a newsagency.

    I don't mean to sound like a downer but it can be difficult renting to a friend/relative. It can become very awkward if rent is not paid on time or the inspections show that he/she wasn't the type of tenant you thought they'd be.

    Either way - whether it be a friend or stranger, treat it as a business and follow the normal processes. If things to go pear shaped, ensure that you're clued up on your states tenancy laws.

    Cheers

    Jamie
     
  9. TDFawaz

    TDFawaz Tony

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    Location:
    Brisbane, QLD
    OK - please please if you are renting privately still have a tenant agreement.

    I know somebody who rented to a 'friend' and, well it didn't go well for them, they weren't paying rent and refused to leave the place.

    They found it hard to resolve. Even if it just a friend, just have a lease agreement, you never know and at least both parties are covered then.
     
  10. Jacque

    Jacque Team InvestEd

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    Sydney
    How did you go with this Sketch?
     
  11. M.Investigator

    M.Investigator Positive Cashflow Investo

    Joined:
    22nd Aug, 2012
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    Location:
    Sydney, NSW
    Yeah, tell us sketchy how it's been going?

    Personally, I prefer to use a property manager to manage my IPs. It's just so much easier and I think it's worth the cost, because I like the peace of mind, and so I can focus my energies and skills elsewhere more valuable.

    Although I have had some other investor friends who suggest doing private management to start off with because it gives you greater insight into the whole process, so that in future, if you do decide to have property managers help you, then you can manage your managers more effectively.
     
  12. jodie123

    jodie123 Active Member

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    15th Aug, 2012
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    Location:
    Brisbane, Qld
    Jamie M & TDFawaz, great advice. Doing business with any friend on any level can seriously change the relationship forever. It is permanent damage. Good luck to you though...
     
  13. angeinvestor

    angeinvestor Member

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    13th Nov, 2012
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    Location:
    Sydney
    I would also recommend going via an agent. the amount of trouble with fixing the plumbing, to clearing leaves off the roof, not to mention unpaid rent. It's worth the agent fees.

    Just find one that charges a low fee, play them off each other.