NSW Tenant search & Partial renting procedure

I’ve just bought my first home 3 bed 1bath separate toilet(strata property). South west sydney. As this is my first time I don’t have any idea on several things. Planning to rent out 2 rooms and live myself on one. Settlement after ~43days from now on.

- If I buy furnitures before I rent can I tax claim it? Or I’ve to buy them once tenants are in?

- Should I just advertise through gumtree or contact a rental agent? Are rental agent costing one-off? Is the full cost tax claimable?

- Is it better to have a property rent manager? Where can I find them?

- I feel like as I’d live there myself, I’d just need help till finding tenants. Can you suggest some service for finding tenants(conducting inspection,talking to prospective tenants etc.)?

- Have anyone used ray white for tenant finding or rental management ? How’re they?

 

It's pretty weird to have an agent to find and manage what are essentially housemates. Just use either gumtree or one of those flatmate websites.

 

You could engage a property manager to find you tenants, this will probably cost 2-3 weeks worth of rent each.
Apart from the tenants one room an inspection report would be useless due to various individual occupants.
You probably don't want it to turn into a party house, so finding a couple would be better (but you will be the awkward 3rd wheel), it's also best to find people with long term average jobs, too good a job and they will move on too soon or may end up on benefits.
Read up on how to self manage, particularly lodging the bond, and the process of disputes.
Don't get too excited about furniture, people will likely have their own so you will end up storing it in the garage (they're more likely to look after your stuff as they will have the same expectations that you will care for their stuff also).
Document everything (with photo's) of who owns what and any lease agreements and keep the file off site (so it doesn't disappear....).

Edit: an entry door lock for each room, supply 2 keys (but keep a 3rd in the file in case).
Install lock boxes out front/side so they can keep a spare front/bedroom door key in, they will lose or forget keys endlessly !!! (A digital push button front door code lock is a good idea also, = no key req'd and lock/code easily and cheaply changed between tenants).

 

If you are renting out the spare rooms while living there then YOU need to be the judge of who you live with and not anyone else.
Despite being a financial benefit to you, it's the social element of housemates/housesharing that matters most of all.

I've usually found flatmates.com has the 'better' pool of candidates.
An even better option is to use the search function on that site and search for people looking for a place to live rather than to advertise your place to the masses.

Dont bother furnishing, most people have thier own bedroom furniture. If they dont it's because they are short term / more transient (which is fine if thats what you are after of course).

 

How do I produce a rental ledger?

 

Dear Fina09,
you might also like to look into what is the difference between a lease and a license?
I hope this helps

 

Spoke to a friend who has done this in qld. You want two documents. One is essentially an application form and the other is a rental agreement. They spoke to RTA and while boarders sit outside normal tenancy rules you can still lodge a bond for each boarder with the rta. Friend gave me a copy of the forms they made. Pm me directly and can email them to you. I will just take out their name and address. They get people through flatmates.

 

DYOR - Google has many answers.

 

Umm why would you want to lodge a bond for each boarder? That seems like just shooting yourself in the foot for no reason.

And you need to be so careful with what you sign - what forms are you talking about?

 

One form is just an application form so get to find out a bit more about them. Reference and work info. Other is roommate agreement. It says things like house rules is no parties or noise between X and y etc. All pretty sensible stuff plus it says either can give 4 weeks notice to leave. They contacts the rta who thought it sounded sensible and RTA said still do a bond as it covers any damage or rent not paid before they move out etc. Can't see why a bond would be an issue for a good person.

 

Legislation varies from state to state. ...

 

For lodgers? It doesn't really vary - its all common law contract stuff across the country for this sort of thing.

I didn't have an issue with taking a bond - it was with lodging it.

 

Not my place but as I nderdtand it, at least in Qld, if you take any bond it is meant to be lodged with RTA. Personally I think it gives both sides piece of mind, otherwise I think a scum owner/landlord could make things messy. If you lodge a normal bind why not this? I don't see the difference. Hey it's working well for them and it means they have some control over the house. This will change a lot if Qld brings in the rules like Vic did. Ie no choice about pets or ending leases. I will give it a year and if it is still good for them I might give it a go with one of my last couple of houses. Time will tell I guess.

 

You are not really looking for a tenant, but a housemate.

 

Skater you are correct they have essentially set it up as housemates. Ironically they are getting the same rent as if rented out, are paying to real estate agent fees, get to use their place for the odd weekend away and they have made some mates who look after the place. They have avoided any end of lease issues when new laws come in and they have bonds lodged so it still covers them for any damages. Plus as they use the place they get to check on it more then some crappy agent who does a 3 monthly that may or may not be any good (based on chat forum comments bagging so many). I like the idea but not sure it suits me although one of my places would make a nice getaway.