×

Landlord and property management guide: renting out your investment property

Reviewed by Rama Dwarapudi on .

Renting out a home is regulated, and the rules differ in each state and territory. This guide gives the steps and the questions to ask, and sends you to your state's official landlord information for the rules themselves.

Before you rent it out

What should I do first?

A few things are much easier to sort out before a tenant moves in.

  • Check what your state requires of a rental home, including minimum standards and safety rules, and fix anything that falls short.
  • Arrange landlord insurance. A normal home insurance policy may not cover a rental property or the loss of rent.
  • Check whether your lender and your insurer need to be told that the property will be rented.
  • Decide whether you will manage the property yourself or use a property manager.

Manager or yourself

Should I manage it myself or use a property manager?

Both work. The difference is who does the work, who carries the risk of getting it wrong, and what it costs.

  • If you manage it yourself you handle advertising, choosing a tenant, the agreement, the bond, collecting rent, repairs, inspections and notices, and you need to know the law.
  • If you use a property manager, check that the agent is licensed in your state, using your state regulator below.
  • Ask what the fee covers and which charges are extra, for example letting fees, inspections and repairs.
  • Ask how repairs are approved, how fast the rent reaches you, and how you can end the agreement.

The tenancy agreement

What goes into the agreement, and what about the bond?

Put the arrangement in writing, and record the condition of the property on the day the tenant moves in.

  • Use your state's standard form where there is one. Your regulator below says which form to use.
  • Complete a condition report at the start, with dated photos, and give the tenant a copy.
  • A bond is usually held by a government body, but not in every state. Check who must hold it in your state, by when it has to be lodged, and what the limits are.
  • Give the tenant the guides and information your state requires.

During the tenancy

What do I have to do while the tenant lives there?

Most problems in a tenancy come from missed steps. Keep to the rules and keep records.

  • Rent increases have rules about how often they can happen and how much notice you must give. Check your state's rules before you send one.
  • You must keep the property in a reasonable state of repair, and some repairs are urgent. Respond quickly and keep a record.
  • You can only enter the property for set reasons and with the notice your state requires.
  • Keep every email, receipt and photo. If there is a dispute, the records decide it.

Money and tax

What about the money and the tax?

Rental income is taxable, and many of the costs of owning the property can be claimed. The rules are set by the Australian Taxation Office.

  • Keep records of all the rent you receive and of every expense, in the year it happens.
  • Deductions can be limited if the property is used privately, or is not available for rent for part of the year.
  • Speak to a registered tax agent about your own situation, including how the property is owned.

Ending a tenancy

How does a tenancy end?

The rules for ending a tenancy differ by state and have changed in several states recently.

  • Follow your state regulator's process and give the notice it requires. A notice that does not follow the rules may not count.
  • Do not try to make a tenant leave in any way other than the legal process.
  • If you disagree with a tenant, your state has a process and a tribunal or court to decide it. Your regulator below explains how to start.

Your state or territory regulator

Where do I find the rules for my state?

The rules for landlords are set by each state and territory. Use the official source for the state where the property is.

Official links last checked on . We do not show limits, notice periods or tax rates here, because they differ between states and change often.

Next

This is general information, not financial, legal or tax advice. The calculators give estimates from the numbers you enter. Speak to a licensed financial adviser, a registered tax agent and a solicitor or conveyancer before you decide.

  • Disclaimer
    Our service utilises AI search capabilities based on publicly available indexed data for non-commercial purposes and testing phase. The above information is an excerpt from publicly available data and may be subject to errors or changes. RealSearch.com.au makes no representations or warranties regarding the accuracy of this data. Please consult the Agency/Agents directly for the most up-to-date information.