find tenant on my own

T

tvadera

Hi All,

I am in the process of changing my PPOR into IP (in the process of getting topup for my PPOR loan to get max tax deduction-would post this sep).

I am also on the look out for tenants and plan to self manage my property.

1) Where do i look out for tenants?
2) Ref checks for them
3) Lodge an application/bond with which authority (my property is in VIC)

I had a chat with few PM's, they are willing to just lodge the paperwork and bond ; provided i find tenants but are charging 2.5 weeks rent + GST , which I dont want to pay (just for paper work :()

Any ideas on where I can get started: I want to know more about paperwork/bond lodgement, because finding a tenant wont be very difficult, have already started talking to my friends and some are interested.

Plan is to rent out, get tax deductions, move back in within 6 years and be CGT exempt...

Regards,
TV
 
Google is your friend...

http://www.rentalagreementsdiy.com.au/residential_tenancy_agreement_vic.php

2.5 weeks rental for lodging a bond is pretty steap, considering it's a fairly simple form. That's what most places charge for finding the tenant and putting them in the property.

My general advice, if you don't know much about property rental, get a professional to do it. 6-7% ongoing rental might sound like they're making money for nothing, but if you have a bad tenant, they work very hard for it. I my experience self managed properties tend to attract bad tenants.
 
tvadera said:
Hi All,

I am in the process of changing my PPOR into IP (in the process of getting topup for my PPOR loan to get max tax deduction-would post this sep).
Click to expand...

What are those top-up funds being used for? If it isn't for investment purposes than it won't be deductible.

Cheers

Jamie
 
Definately get a property manager, most fees you pay will be tax deductable and then when you are used to the process you can take it back and self manage!

If you are going to do it on your own then I would suggest advertising on gumtree and check what the fees are for a private listing on domain.

Make sure you hand out application forms which you will find at Consumer Affairs VIC website.

When you have selected a tenant and spoken to all of their references on their application you will need to use the paperwork provided on the consumer affairs website as in VIC your leases etc. need to be in the 'prescribed' form. Make sure you print off or order a copy of a tenants booklet (or statement of rights and duties), you must give this to your new tenant on the day they sign up or face a fine of $500.

If you are taking a bond then you have to do a condition report, keep the original condition report for yourself and provide the tenant with two copies, one of which they must return within 3 business days with any additional comments.

The bond has to be lodged with the RTBA and you lodge the bond by filling out a bond lodgement form and sending this form with a bank cheque or money order made out to the RTBA (they do not accept personal cheques). This must be done within 10 business days of receiving the bond.

Some useful links will be:

http://www.consumer.vic.gov.au/CA256EB5000644CE/page/Renting?OpenDocument&1=910-Renting~&2=~&3=~

Start here for your renting information and forms and secondly;

http://www.legislation.vic.gov.au/D...ca25790300187561!OpenDocument&Highlight=0,Act

This is the residential tenancies act for VIC - read it and learn it as it will be very, very helpful to you to help you avoid un-intentional (and often costly) mistakes and also make you aware of what to do if something does go wrong with your tenant.

Best of luck and as always, search through the forum, there is so much more information I would like to give you but I'm afraid my post is long enough already!!
 
Hi tvadera,

If you decide to go ahead and self-manage, then we can help you find tenants (by advertising on-line), do a search on the National Tenancy Database and we also provide you with a legal pack.
 
I'd get someone to manage it too. I've done both. Managed myself and had managed for me. At the end of the day depends on the agent and who you get. Get the right one, your life will be stress free and easy to handle. Get the wrong one, you'll spend just as much time doing it yourself.

In saying that doing it yourself can cause heartaches or be stress free depends on how much you know, your time constrainsts, attitude etc.

For me, agent is the way to go.

For someone else, your call.
 
As a private landlord I think you can still access TICA (the tenancy database) - I'm pretty sure you can opt for one report or an annual subscription which allows for multiple checks (good for those self-managing a few).

Cheers

Jamie
 
Hi All,

Thanks for your views and replies.

Step 1: I need to do a top up for my loan and then change it to IO. However some one mentioned that need to make sure top up is used for investment purpose only (answer to that is I have got a way around that, as advised by my accountant)

Step 2: Revalue the home so in case I do not move in before 6 years, can use the valuation for cost base

Step 3: Start looking for tenants (ask friends, advertise on gumtree as mentioned by some forum members)

Step 4: Get all the forms ready and do a condition report and read more about lodgement of bond. Also most imp is give a booklet to tenant highlighting all the rules, etc

Step 5:Make a list of reliable tradies so can be handy during maintenance/call out times

All this would take a bit of time , but hopefully would get it done.

Regards,
TV
 
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