A Guide for First-time Landlords

January 9 2024

An investment property can be an excellent way to earn an income. Kollosche shares some key points to consider before entering the rental market.
A Guide for First-time Landlords

Owning a rental property can be a safe and savvy way to earn an income or supplement an existing one.

On the Gold Coast, increased interstate migration following the pandemic led to the issue being even more pronounced, fuelling favourable yields for landlords. Nationally, rental prices rose by 11.8 percent between March 2020 and February 2022, according to CoreLogic.

Before your property enters the rental pool, there are a number of minimum compliance requirements that need to be met to safeguard yourself and your asset.

1. Landlord Insurance

Landlord insurance is a policy specifically designed to protect those who own investment properties. It covers any event that may affect your property, such as theft, storm damage, or tenants failing to pay their rent. While most tenants are sincere and want to do the right thing, accidents do happen. Landlord insurance is a small fee to pay for peace of mind and compared to the value it can bring. This cost is also tax deductible.

2. Smoke Alarms

Following the introduction of 2022 legislation, it is a landlord’s responsibility to ensure smoke alarms are installed in accordance with the regulations. Smoke alarms must be installed in every bedroom, between every bedroom exit point and in living areas on every level of a property.

3. Pool Safety

If your property has a pool, you must have a pool safety certificate issued by a licensed pool safety inspector. If your pool is not compliant, the inspector can advise what, if any, work is required to make it compliant.

4. Bond Clean

Before a new tenant moves in, it is advisable to organise a comprehensive bond clean involving cleaning all shelves, cupboards, windows, fans, oven deep-cleanse, air conditioning units and general areas to ensure a pristine living environment. For furnished properties, steam cleaning the beds and providing new mattress protectors is also advised. Make sure the cleaners issue you with a full receipt that can be provided to tenants. This will set an expectation of the standard of cleaning required when the tenants’ lease expires, or they move out.

5. Minimum Housing Standards

Minimum housing standards provide clarity to tenants, residents, property managers and owners around the basic standards and maintenance obligations that must be met for a residential property to enter the rental pool in Queensland. These things include but are not limited to having locks on all doors and windows; ensuring the building is weatherproof and structurally sound; installing window coverings for privacy; ensuring there is adequate plumbing and drainage; and supplying functioning essential appliances.

6. Gas and Electricity Compliance

If your property has any gas installations or appliances, you need to obtain a gas compliance certificate or safety inspection report from a qualified business. All properties must have an electrical safety switch fitted to powerpoint circuits, and these switches need to be regularly tested.

To start a conversation around leasing your property asset, please reach out to Kollosche’s Property Management and Leasing division who will be happy to answer your questions.

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