I have been my own real estate agent for a few years and am just about to sign a lease with my 3rd set of tenants.
While I believe that most people should use a real estate agent – if you think you could handle (and enjoy) being your own real estate agent these are (hopefully most of) the main steps of what you will need to do.
You may also wish to see:
To get new tenants
- Advertise & Attend open for inspections (www.domain.com.au allows private advertisers, www.realestate.com.au doesn’t)
- Have potential tenants fill out an application form http://www.rentalagreementsdiy.com.au/free_residential_tenancy_application_form.php
- Find best tenants (may include ringing tenant references, sorting through application forms, etc.).
Once new tenants are found
- Prepare and have the tenants sign a lease (and provide ‘renting guide’ from fair trading website) http://www.fairtrading.nsw.gov.au/pdfs/Tenants_and_home_owners/Tenancyagreement_conditionreport.pdf
- Complete an inspection report prior to tenants moving in (see 1. for PDF inspection report)
- Receive bond payment, prepare bond lodgement form & lodge money with Office of Fair Trading (as bond lodgement forms have unique numbers – order free from www.shop.nsw.gov.au )
- Give keys to tenants
Once tenants have moved in
- Deal with any enquires (from tenants, strata committee if apartments)
- Get any repairs fixed (repair yourself, call a tradesman)
- Follow up tenant when rent isn’t paid (phone/email)
- Write nasty letters when lease/property conditions aren’t met (e.g. washing visible on balcony, etc.)
- Letters to increase rent or Negotiate new lease (need 60 days notice usually)
Once tenants are moving out
- Have tenants sign refund of bond form (http://www.fairtrading.nsw.gov.au/pdfs/About_us/Forms/claim_refund_bond.pdf)
- Do a final inspection to ensure no claims against bond will be made
- Collect keys from tenants
- Ensure all rent has been paid
Why I would use a real estate agent:
- If you don’t have the time (low time commitment when occupied – higher when organizing new tenants/repairs, etc.)
- If you could spend your time doing more profitable things
- If you aren’t interested/ would dislike acting as an agent (it can be STRESSFUL at times!)
- If you have many properties.
- If you think there could be problems (i.e. dodgy area so might be dodgy tenants, likely repairs needed in building, etc.)