How to prepare your investment property for tenants

Plans

There are many things you can do to maximise the rental income on your property and boost its potential for attracting quality tenants. If your property shows that it’s been cared for when the tenants move in, not only are you likely to get better tenants but they’re more likely to take good care of it.

Is the property really up to standard?

Invest in professional cleaning so the property looks and smells fresh, with no or minimal signs of the previous inhabitants. This is especially important if the previous tenants had pets.

Many managing agents advise repainting walls, steam-cleaning carpets and re-polishing floorboards in between tenants. Fittings and fixtures should also be in good working order.

If your investment property has a garden, make sure it is well-presented, with grass mowed, garden beds weeded, trees pruned, paths cleared and all rubbish removed.

Upkeep of the grounds by the tenant can be part of the rental agreement, or you could arrange for an outside contractor to take care of maintenance such as lawn-mowing and keeping gutters clear of leaves. The contractor’s fee could be included in the rent or paid for by the tenant. Make sure this is clearly stated in the rental agreement.

Keep in mind that rental properties need to withstand the rigours of tenancy so it’s wise to invest in quality flooring, durable finishes and robust fittings that will last and are easy to clean.

Rental properties need to withstand the rigours of tenancy.

The bare essentials

Consider having the following items in place to maximise your rental return:

  • heating and cooling
  • phone/internet connection
  • security – consider having the locks changed for each new tenant and always have spare sets of keys for yourself and the managing agent, if you’re using one
  • privacy – this includes fencing plus curtains or blinds to all windows
  • smoke alarms
  • good water pressure.

Finally, make sure that you have insurance in place. No matter whether you’re managing the property yourself or whether you’re using an agent, certain insurance policies can cover you for unpaid rent and any damages.

We can arrange an obligation free quote for insurance1 during your home loan application process. Speak to a Macquarie mortgage specialist on 13 62 27.

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Unless stated otherwise, this information has been prepared by Macquarie Bank Limited ABN 46 008 583 542 AFSL and Australian Credit Licence 237502 and does not take into account your objectives, financial situation or needs. You should consider whether it is appropriate for you. All applications are subject to Macquarie's standard credit approval criteria.