At least the equivalent of a weeks’ rent. Probably more.
When employing an Agency to simply find a Tenant for your property, on a casual basis, they will charge the equivalent of 1 or 2 weeks’ rent plus advertising costs. This is called a “Casual Let” in the Real Estate Industry. Real Estate Agencies, try to avoid taking on Casual Lets. They want the ongoing Management of the property. In a great many of these Casual Lets, the Agent will not conduct the viewings. The owner does. They advertise the property, forward the inquiries to the owner, conduct a TICA Check, prepare the Legal Documents, and process the Rent and Bond. If the weekly rental amount is $500, and they charge 2 weeks rent, that is $1000, for doing what is routine procedures, for them. By doing this yourself, that is a huge saving. There is a great deal of information and assistance that can be found on the Tenancy Authority website, of the governing body in your state.
Let’s look at how you can do these yourself.
The first step is to advertise the property on the major real estate sites - Realestate.com.au and Domain.com.au. These sites are visited by millions of property seekers each month. Realestate.com.au is Australia’s #1 site. Domain.com.au has a monopoly on the market in some southern states.
Rent.com.au and Rentfind.com.au are dedicated rental sites and attract good enquiry also. Allhomes seems to have a niche market in the ACT. ReDIY can advertise your property on all of these sites, plus more for a one off, low cost. The advertisement will remain on all sites until leased. No more to pay with ReDIY. This is your first saving.
Conducting the viewings costs you time and petrol money. As a casual let, you would be doing this anyway. No saving, but very little cost.
ReDIY can give you access to conduct a TICA Check, for low cost. A TICA check is important to ensure your tenant has a good rental history. This is a search of the National Tenancy Database, to investigate the tenant’s rental history. It discloses delinquent tenants. If you go to TICA direct for this search, it will cost you more than using ReDIY. Another saving.
Preparing the documentation is easy. The lease agreement, bond lodgement forms, and entry condition report can all be downloaded from the Tenancy Authority Site in your State. How to complete these and what to do with them can also be found on this site. You only need to do your homework to complete these forms and comply with the Legislation in your State. Therefore, another saving for you.
The reason that agents want exclusivity, rather than a casual, to look after the letting of the property, is to have the on-going management of the property. They take an average of 8% each week of the weekly rental amount. You can certainly collect and monitor your own rental payments. If you can do the viewings, you can conduct your periodic inspections of the property and you can take care of any maintenance issues. If you have screened your tenant thoroughly, you should not have any problems. Make sure you are familiar with the web site of the Rental Authority in your state. This is where you will find all the information that you will need to professionally manage your rental property yourself.
Save with ReDIY when letting out your property yourself.
If you advertise on the best sites to attract many inquiries, you will have a choice. The option to select the best possible tenant/s. By conducting all of the checks on the tenant/s, especially a TICA check. you can let the property (Find a quality tenant) yourself and save a great deal of money.