first_imgPUTTING your home on the rental market is a decision that will affect many of Cairns’ transient population and, if managed correctly, could be a driver of great financial and economic wealth.First National Real Estate chairman and head of the group’s Cairns Central franchise David Forrest said there were five important things to keep in mind when exiting the family home and getting it ready for a tenant.He said one of the biggest decisions to make was whether being a landlord made financial sense.“There are upfront costs such as insurance and tax implications, so it is essential that you talk to a qualified financial advisor or to your accountant before making any decisions,” he said. “Go through your finances carefully and plan your cashflow to ensure you allow a buffer for those unexpected occurrences which life gifts to us from time to time. “Some property quirks are overlooked by owners but will be picked up instantly by paying tenants. By talking to a real estate agent, you will gain a thorough understanding about your legal obligations and rights.“While you may have spent many happy years there, your connection to the property is likely to be emotional. “Try to take a step back and see it from a potential renter’s perspective. “Are there obvious cosmetic improvements that need to be made in order for it to be more appealing? Should it include furniture or would unfurnished be a better option? “Is everything in full working order? You don’t want the stove to suddenly fail or the air conditioners to stop working during the height of the wet season, so you will need to prepare in advance.“When assessing your plan, keep in mind that property investment is a long-term decision which needs to be carefully considered.”Under law, rented homes need to adhere to strict legislations such as installing working smoke alarms and a pool fence which has been approved by the relevant authorities.Owners can also make your property more appealing by including items such as pool maintenance or lawn/garden care in the tenancy agreement. Then there is the issue of allowing pets. More potential tenants will be drawn to your property if you do allow them.More from newsCairns home ticks popular internet search terms2 days agoTen auction results from ‘active’ weekend in Cairns2 days agoMr Forrest said it was also important to make sure you have fully considered how much you’re charging per week, so you don’t price yourself out of the market.“Your agent will be able to bring you up to date with market facts such as vacancy rates and rental returns,” he said.“As well, make sure you are organised and have copies of everything filed in a safe place. Make sure you select an agent that does proper tenancy checks and is a member of a national tenancy database.“They should also check past tenancies and the employment status of applicants. “Time spent at this stage of a tenancy is important and can save you from encountering problems down the track.“As long as you get professional advice from an accountant, financial advisor, finance broker and real estate agent, your home could provide a nice little nest egg.”last_img

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