Buy My House: 6 Tips when Selling to Family

buy my house in Australia for sale by owner real estate

Families are like fudge… mostly sweet with a few nuts.

When you’re posting buy my house on social media (and through effective home selling services like what zerocommission.com.au offers), family members will be one of the first to spot your listing. A relative might then consider your property a good investment.

Selling your home privately to a family member can sound like the ideal arrangement. And why not? You get to skip the niceties and get down to the gritty details of the deal! A relative who’s already familiar with your property for sale can be the best buyer.

It pays to curb your enthusiasm, though. Remember you’re conducting business, not a family dinner. It can be difficult to not see the other party as family. Fortunately there are ways to ensure the best deal for both sides. Keep the arrangement professional with these six tips when selling a home to family.

Tip #1: Your interests come first

buy my house in Australia for sale by owner real estate

This may seem like a sceptical way to start the list but the bottom line is you’re selling your house to a paying, interested buyer. Prepare your property and have it appraised. Invest in the necessary repairs. It’s disappointing to go through the motions and not see the deal through, especially with a family member involved.

You’ll fetch the best price for your house if it’s primed for the sale. In case your relative opts out of the Buy My House deal, proper planning will ensure you’re good and clear to consider other interested parties.

Tip #2: Consider legal assistance

You’re ecstatic a relative responded with keen interest to your Buy My House ad. Then you find yourself willing to cut the price, gift the property at a discount. While costs and arrangements are all under your discretion, it’s vital to have every snag covered, working up to the closing.

It’s likely there are legal conditions to meet. Paying for legal advice will save you from unforeseen events later on.

This is particularly necessary when you’re selling to a close family member, like your sibling or parent. Regulations differ between states, and legal advice ensures you have the prerequisites covered.

Tip #3: Go for the best deal for both parties

buy my house in Australia for sale by owner real estate

You’ll be tempted to disregard the price on your Buy My House listing and seriously undercut for the sake of a family member. This urge seems more reasonable during the walkthrough and negotiations.

Chances are pretty high you’re selling your house privately for profit. Keep your game face on. If your buyer is quite familiar with the property, fend off bargaining attempts by pointing out your investments in renovations. Surely you didn’t go through this trouble just to sell the house at a loss.

Tip #4: Be shrewd with financial checks

Your relative may request for leeway in finances, with reassurance this will be smoothed out at the closing. Even though you’re selling to someone you know, every potential buyer must still be pre-approved for a loan before you commit.

Buyers must be pre-approved for mortgage before they can make an offer. Otherwise, any offer made is a bluff. Now isn’t the time to rely on someone’s verbal and informal promise. Verifying for eligibility should be your first recourse, regardless of the person you’re dealing with.

Tip #5: Have a disinterested party host the walkthrough

buy my house in Australia for sale by owner real estate

Your buyer is so personally acquainted to you that judgment may be clouded in the process. Consider entrusting the crucial details of the deal to a trusted, disinterested party. It may be a friend or a hired professional, anyone who can ensure the deal is professional and straightforward.

At the very least, have someone join you during the walkthrough and negotiations. A disinterested party can point out flags or concerns beyond your peripheral judgment.

Tip #6: Due diligence: the lender should know you’re related to the buyer

This is essential for both parties, especially in the later stages of the sale. Lenders prefer parties who are upfront with the nature of the sale.

Plenty of housing authorities require applicants to establish identity of interested parties. Conventional mortgage arrangements also implement this from the get-go.

buy my house in Australia for sale by owner real estate

Buy My House, Fam!

Selling a house privately to a family member can be the ideal route. There are advantages to turning your keys over to someone familiar.

Wouldn’t it be nice if you’re still welcome to visit a home you’ve sold, break bread at the dinner table, and spend the holidays? If you conduct the sales process professionally, you won’t have to sever emotional ties with the property.

Ready to find the ideal buyer for your For Sale by Owner home in Australia? We can help! For a nominal fee and no recurring charges, zerocommission.com.au will list your home for sale UNTIL SOLD.

Want other tips to help you sell a house fast? Check out our other blog posts:

No Agent Property Tips: Perth’s Top 5 Suburbs for 2016

Perths Top 5 Suburbs for 2016-No Agent Property Tips

Learning about the No Agent Property market, a.k.a For Sale by Owner, means keeping abreast of the latest in suburb news in Australia. This time we’re covering the top Perth suburbs.

Perth may not be as busy as Melbourne or Sydney, but its laidback appeal is what most people are looking for. If you’re searching for good pickings, there are a handful of suburbs here that may just convince you to move.

Location is surely a factor in options, and the properties along the coast and riverside are usually first prospects in buying houses. Suburbs nearer to the city and less affluent districts are prime targets in searching for rentals.

Considering your lifestyle and the amenities that complement, here are the top five Perth suburbs to note in your No Agent Property search before the year ends.

Armadale

Perths Top 5 Suburbs for 2016-No Agent Property Tips

As early as 2014, median house prices in this suburb steadily increased from 7%, currently at $325,000. Continued development of the area only improved its reputation and marketability, especially for investors. Affordable homes in the No Agent Property market of Armadale appeal to prospectors on a budget, and ongoing infrastructure projects perk up local offerings.

Armadale has enough transport nodes to ensure easy commute. It’s an important junction between the South Western and Albany Highways, and the Armadale railway line is also one of five servicing Perth. Leisure spots like Minnawarra Park and Araluen Park sweeten the deal.

Balcatta

Perths Top 5 Suburbs for 2016-No Agent Property Tips

If you’re after a No Agent Property closer to the bustle of the metropolis, this suburb should be on your short list. It’s a mere 12 km from the Central Business District; this central location is appealing for those who want proximity and the convenience of larger space. Balcatta is the affordable option, and it comes with many perks.

This suburb is also commercial and industrial, and its appeal to middle-class investors is its affordable prices. The median range is $540,000, not bad considering its proximity to the CBD.

Subiaco

Those familiar with this suburb consider it as first pick for No Agent Property deals, and for good reason. Living in “Subi” is a lifestyle statement. It’s very close to the city, and the variety of leisure, sporting, and dining options makes you feel you’re living in suburb near the busier cities. Subiaco is currently the pet of ongoing redevelopment, making it the prime prospect for families, single young professionals, students, and even retirees.

Notable spots here include China Green, the old Ace Cinema, King’s Park, and Swan River. Also near Subiaco are Perth’s soon-to-open Children’s Hospital and the University of Western Australia, bonus amenities you can’t overlook.

Perths Top 5 Suburbs for 2016-No Agent Property Tips

Victoria Park

It’s an inner-city suburb four kilometres south of the CBD. The convenience is only matched by character, which is why properties here are sought-after by investors.

Notable here is the busy café strip along Albany Highway, a spot for the savvy leisure-seekers. Top this with tree-lined avenues and themed home designs, and Victoria Park offers good investments at reasonable prices.

As side note, this suburb is also close to the Curtin and TAFE campuses–something to consider if you’re after rentals and leased properties.

Cottesloe

Median prices of houses in Cottesloe fetch a price tag of around $2 million. This is still reasonable, considering its location. Nestled between Perth and Fremantle, the vibe is as laidback as the nearby beaches. And the diverse mix of residents keeps the community interesting.

Entry costs to rental houses fetch around $1,000, $5,000 a month for apartments. It’s safe to say “Cott” is the suburb to be if money isn’t a problem and you won’t settle for anything less than ideal in the city.

No Agent Property Forecast in Perth

Perths Top 5 Suburbs for 2016-No Agent Property Tips

This is a good time to dive into the No Agent Property Perth’s suburbs, especially the ones on the list. These are either up-and-coming or reliable investments, and value is expected to increase next year.

As always, it helps to do the legwork and research on worthwhile prospects. Consider the median price for the area, sales and rental returns, current and projected developments in your decision.

A house in a Perth suburb could be your next best in investment!

Have a house or business to sell in Australia? We can help! For a one-time nominal fee, zerocommisison.com.au will list your property or business on the top websites in the country. Learn more on our site and sell a home or business privately today!

Like this post? Check out our other blog posts to deepen your knowledge of the Australian property market:

Find out why our For Sale by Owner customers are extremely satisfied

Today, selling a house in the For Sale by Owner industry is not only an easy feat, it’s the most practical route. Selling a house privately has never been this simple and effortless. The Internet is constantly evolving. Thanks to social media and a dynamic real estate industry that’s shifting to online real estate agents, selling a house yourself is the smart choice.

We here at zerocommission.com.au make it our mission to not only provide a user-friendly experience for our customers, we aim to help save you thousands of dollars in the sale of your home. The average commission of traditional agents in Australia is a staggering $14,090! Imagine getting to keep that money in your own pocket and not an agent’s.

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But don’t take our word for it. We have a list of very satisfied customers who’ve sold a For Sale by Owner home through us. Here’s what some of them have to say about zerocommission.com.au

Note: These are REAL people and they’ve given us their consent to talk to people like you who are interested in our services. Should you wish to get in touch with one of our happy customers, email us at office@zerocommission.com.au

For Sale by Owner Customer Testimonial #1

Zerocommission.com.au is a great Australian company! They’ve been an absolute pleasure to deal with–always there to assist me and offer tips and guidance when needed.

I thought I might not get the attention and after-service promised after I paid my money, being an Internet-based company. How wrong was I! It was everything they promised.

Heather from Dubbo, NSW

As mentioned earlier, we don’t take any commissions, unlike old-school real estate agents who pocket thousands of $$$ after each sale. Instead, for a nominal fee of $299 ($50 for rentals), we’ll list your For Sale by Owner property on the top real estate sites in the country (RealEstate.com.au and Domain.com.au) UNTIL SOLD.

Is that fee recurring or one-time? You pay only once! No hidden fees, no monthly dues.

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For Sale by Owner Customer Testimonial #2

I’ve just listed our house on RealEstate.com.au and Domain.com.au, thanks to the services of Stephen of zerocommission.com.au whose been in Real Estate for over 30 years and found a better way to help BUYERS find their new home….

Who needs real estate agents who take advantage of your sale by charging you tens of thousands of $$$ to do…what?

As my solicitor said, “No one knows your property better than you and no one can be as honest”.

If you’re thinking of selling your home, I recommend you talk to these people first. My listing took me 10 minutes to do and I had immediate support and assistance. Don’t list your property until you chat to Stephen. It doesn’t matter where you are in Australia….Be sure to check out his latest offers and tell him I sent you!

– Sue, Brisbane

After you’ve created an account on our easy-to-use website, you’re then given the ability to create and manage your listing. You can also edit your listings as many times as you wish with zero charges.

We understand that potential home buyers can also be reached outside the online world. A For Sale sign will be mailed to you free of charge. We strongly advise you place this sign on your property to increase your chances of attracting buyers.

Buyer enquiry details are delivered directly to your email. We also provide 24/7 customer support to all our customers!

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For Sale by Owner Customer Testimonial #3

We tried zerocommission.com.au and sold our house sooo fast, we didn’t even have time to put the sign up.

Because we didn’t have real estate fees, we were able to lower our price and then it was a really good deal for a buyer.

Zerocommission.com.au was always helpful and informative. The price we paid to them was equivalent to an ad for two weeks in the local paper’s real estate page, which no one even looks at now.

It’s definitely the way to go. We can’t thank them enough. Thanks, zerocommission.com.au!

–  Julie A. from Mareeba, QLD

These are just some of our happy customers who sold a For Sale by Owner home in Australia through us. Email us today (office@zerocommission.com.au) if you wish to get in touch with one of these satisfied clients. Or head over to our site and list your real estate property for sale today!

4 Common Mistakes You Must Avoid When Selling a Business

selling a business Australia for sale by owner

Are you attempting the feat of selling a business? This is not like the smaller goal of, let’s say, selling a mobile phone, your second-hand clothes, or even a car. Selling a business isn’t difficult but mistakes can be made.

Each day owners of small businesses around the world commit particular mistakes when trying to sell their enterprise. Learn from their blunders instead of committing these errors yourself.

We put together the 4 common mistakes to avoid when selling a business. Knowing and avoiding these tips can easily save you thousands of dollars.

Mistake #1: Failing to do promotion/marketing work when selling a business

Don’t fall into the trap of assuming a third-party will do the necessary promotional work for you when you’re trying to sell your business. Nobody knows your business more than you do.

Even the most expensive or most experienced broker will not be as passionate about your business as you are. You’d be very hard-pressed to find someone who knows the inner workings of your own establishment as much as you do. If being motivated about selling your own business were a contest, you’ll be sure to take home the first place trophy. And there’s no doubt about it.

This is not to say you don’t work with third parties to help sell your business. But don’t just sit back and wait for someone else to do the entire marketing job of selling your business for you. Share the post on your social media. Email and share the link of your business for sale to friends and colleagues.

Potential buyers would, of course, want to talk to the previous owner. Your level of experience and expertise about the company will be way ahead of anyone else. Communicating with the buyer directly will seal the deal and help you sell a business faster.

Mistake #2: Failing to plan ahead or refusing to sell at the right time

selling a business Australia for sale by owner

Trust us, you don’t want to wait too long or fail to plan the sale of your business. Selling a business is not as simple as selling some tangible item. There’s a window of opportunity that you just can’t miss.

Planning for the long term is crucial if you want to close the sale. You can’t just decide to sell a business on a whim. This means being meticulous about your records, providing interested buyers a comprehensive history of your company and keeping a portfolio about your business.

Your thorough planning won’t be put to waste if you’re looking to sell a business. Have all the records and your pitch ready so that when an interested buyer comes along, you don’t have to scurry and put together a sloppy mess of a proposal. No potential buyer will be impressed.

Mistake #3: Selling a business to an unfit buyer

Don’t just grab the first offer you see, unless there’s a concrete reason why you’re looking to sell a business fast. Remember that the first offer is probably not the best offer you can find.

Is someone offering to buy your business with no deposit yet wants a lengthy contract? This is a blatant red flag.

The proceeds of the business can go south after the new owner takes over. Without any money down, you could be left dealing with the failure of a business you thought you were retiring from.

Be wary of any potential buyers who lack experience in the business arena. The new owner may lack business experience, have a closed mind or be a poor leader. Ensure the details of the sale benefits you and meets your goals. This means knowing why you’re selling your business in the first place.

Mistake #4: Over or under pricing your business for sale

selling a business Australia for sale by owner

Now is not the time to be unrealistic. You don’t want to waste anyone’s time by setting the price too high or too low when trying selling a business.

Are you expecting too much for a business that’s not generating steady income? This is where meticulous planning plays a vital role. Consider factors such as your competitors, industry, customers and current market trends when pricing your business for sale.

Is your business stuck in a rut, not producing any income? Then you’re going to have to consider a going-out-of-business sale instead of quoting a steep price. What’s the advantage of a going-out-of-business sale? Immediate cash is one. Next, you get getting the business out of your hair. Let someone else, hopefully someone with more experience, handle your enterprise if it’s not making money.

If you’re feeling low and uninspired over a losing business, selling to the right buyer might be the solution. Sometimes cutting your losses and admitting defeat is the better course of action than milking a dried up cow.

But don’t act impulsively either. One common mistake of business-people is deciding to sell based on negative emotions. In effect, they end up pricing their business for sale too low. This is most true when owners decide to sell right after an unwelcome event happens, such as when illness hits or the tangible effects of financial woes. Timing is key.

Research, research and research when your goal is selling a business. Also, careful planning and acting out of logic instead of emotions will help you avoid these common mistakes when you put up a business for sale.

Like these tips? Check out our other marketing tips to help you close For Sale by Owner deals in Australia:

Rent My House: Terms to Include in a Lease Agreement

rent my house in Australia DIY landlord tips

You met your goal of rent my house in Australia but how would you feel if you find your apartment painted neon green on your next visit? This isn’t so bad, unless you’re the landlord. The culprit is your tenant, who was gracious enough to do repaint the walls for you. Being a DIY landlord is easy if you cover your bases and thread out loose ends.

What can you do when life gives you a lemon? You squeeze it and chalk it up to experience. Avoid mishaps by including these terms in the rental agreement. Even if you’ve filtered applicants like a lion picking out prey, it’s still possible the one you choose ends up a disappointment. This is why your terms of agreement need to be rock-solid and watertight. 

Here are six terms of agreement crucial in for rent by owner properties:

Term #1: Names of every tenant

rent my house in Australia DIY landlord tips

If multiple tenants are sharing your property, then everyone should be accountable and responsibility. Shared space has its limits, often within the bounds of hangouts and sleepovers. It’s a different story if you have what’s pretty much like the entire cast of Friends couch-surfing in your apartment without your permission. It’s important everyone is present during the walkthrough and upon signing.

You need the names of each tenant when you finally choose who’ll say yes to your rent my house ad. Every tenant indicated on the terms of the lease is responsible for the full amount of the rent, also on the state of your property. This means you can hound one tenant for the entire rent, even if others skip or move out. You can also end the tenancy for everyone with due cause. How’s that for evil genius (insert maniacal laugh)?

Term #2: Occupancy restrictions

rent my house in Australia DIY landlord tips

The terms should indicate the unit is exclusive residence to signed tenants. Children or dependents are also named and accounted for. Being particular with this policy gives you the right to say who gets to stay.

Remember, you screened and shortlisted for applicants, and only those approved should be allowed tenancy. Set the limit on allowed number occupants; this is for your own peace of mind. The clause is valuable because it prevents anyone from crashing your place, at the invitation of any tenant.

It’s also a safeguard from subletting. You don’t want anyone mooching rent money out of your property. Tenants who put up ads that say rent my house are a cause for concern. A tight agreement that spells out the occupancy restrictions an easily solve this problem.

Term #3: Duration of tenancy

This is an essential provision in managing for rent by owner properties. The document must indicate if it’s a rental or fixed-term lease arrangement. Rentals expire every month and renew automatically (unless terminated). A lease usually lasts a year, and terms are reviewed or adjusted upon expiration.

Decide how long you want the rent or lease to last. Consider tenant preferences as well, adjust the duration if you can. Everyone should have the same expectations, and one party should be allowed to end the tenancy if the other doesn’t hold their end of the deal.

Term #4: Rent

rent my house in Australia DIY landlord tips

Specify the amount of rent due, the regular due dates (first of the month, 15th of the month?), and how the tenant sends payment.

If you’re willing to accommodate a grace period, keep it down to two days. Setting payment options also spares you from the usual alibi of “I couldn’t reach you yesterday so I used the rent money to order Google Glass on eBay instead.”

Detail out your preferred payment methods (if you accept checks), any fees on late payments, and charges on dud checks. You’re in business for profit here, so close all the loopholes you can find.

Term #5: Terms on security deposit

This can be sketchy territory in for rent by owner properties if you don’t lay out the terms in detail, just to be sure. Avoid confusion and lawsuits by minding the details, including:

  • The amount of the deposit (must comply with state laws)
  • Specific provisions on how you’re allowed to use it (and how the tenant can’t use it)
  • How and when you’ll return the security deposit, at the end of the tenancy
  • An accounting of the deductions
  • Non-refundable charges (cleaning, coverage for pets)

And be clear that the security deposit isn’t meant to cover for unpaid rent.

rent my house in Australia DIY landlord tips

Term #6: Repair and maintenance

Your tenant will depend on you on the smallest upkeep if you don’t detail terms. You may even be liable for uncollected garbage! The tenant is expected to be responsible for keeping the property clean and orderly. They’re also liable for damages caused by neglect. You can also choose to prohibit installations or renovations: burglar alarms, built-in dishwashers, even wallpaper.

Tenants are responsible for informing you of damage and defects on your property. Detail how you’re going to handle alerts and requests, which are urgent enough and need immediate attention, and which ones you can put off for the weekend.

Managing a for rent by owner property comes with perks. Cover your interests in the terms to ensure a smooth lease. There are fewer kinks to straighten out, and hopefully you’ll always be on your tenants’ good side. Be the landlord your tenant wants to see, even on rent-is-due day.

Ready to look for tenants and rent your home privately in Australia? For $50 we’ll list your property UNTIL LEASED. Learn more here.

Being a DIY landlord can be a very rewarding experience. You might like our other blog posts to help you manage a rental property like a pro:

MoveIn.Space: Helping Landlords in the For Rent by Owner Industry

rent my property australia tools for landlords

Thinking of getting into the For Rent by Owner market? Renting out your house or apartment privately can provide you with sizable extra income. And thanks to the digital age we live in, managing rental properties privately is easier today than ever before.

Social media and certain websites help homeowners who want to rent a property privately find the perfect tenant. And there’s MoveIn.Space (www.Movein.Space), a site that provides a revolutionary way for landlords and tenants to avoid future conflict. With a mission to “create peace between landlords and tenants by adding visibility to a crucial, but often overlooked and unorganized process”, MoveIn.Space comes with a walkthrough feature that turns their goal in reality.

rent my property australia tools for landlords 

Question: What’s the Walkthrough feature and how will it help me in my For Rent by Owner venture?

After you get past the crucial step of finding the right tenant (if you haven’t found yours yet, you might want to check out our blog post How to Select Tenants to Rent my Property), the next step is making sure you document the property’s condition.

rent my property australia tools for landlords

MoveIn.Space’s founder Josh Rosenthal and his team have observed that the majority of disputes between landlords and tenants revolves around the condition of the property before the tenant moved in.

The hole in the wall was there before I moved in.” – Lying tenant #1

Missing stove knob? It had always been missing in action.” – Lying tenant #2

You created the bullet holes, not me.” – Psychopath tenant

Thanks to Movein.Space/walkthrough, both tenants and landlords can conduct property inspections smoothly.  The walkthrough organizes the steps to putting together a property report, this way both parties can agree on the property’s condition before the move-in date.

A property report is generated automatically based on data you provide, and this can be accessed online by both landlord and tenant.

According to Josh, “Using MoveIn.Space/walkthrough for move-in and -out creates usage report that the tenant can show to subsequent landlords.”

rent my property australia tools for landlords

 

Question: I want to be a private landlord but technology isn’t my field. Do I have to be tech-savvy (i.e. a nerd) to use Movein.Space/walkthrough?

Not at all. Anyone who knows how to do simple online tasks like upload a photo and browse news websites can use Movein.space/walkthough with ease.

The steps to creating the property report are simple:

  1. Head over to MoveIn.Space/walkthrough using your tablet or smartphone.
  2. Enter details about the house, housemates (if any), and contact information.
  3. Snap pictures of the property, as well as items included (typically appliances and furniture).
  4. Add descriptions of the items, such as model numbers and condition (new? missing objects? existing damages?)
  5. Submit the report. You and your tenant will be able to access this anytime online. You’ll both also receive a reminder when it’s time to conduct a move-out inspection.

rent my property australia tools for landlords

With Movein.Space/walkthrough, you don’t have to rely on paper documents that can get lost and are one-sided. Your report (hastily written on a notebook) might claim one thing, while your tenant will insist on another thing, using their own report scribbled on God-knows-where. With Movein.Space, you can both agree on the same property report right from the very beginning, making your For Rent by Owner venture a breeze.

And the pictures you upload in the report will be very difficult to dispute. No, there wasn’t a hole in the wall prior to the move-in date. And, no, the couch didn’t come charred like overcooked chicken when you put up your home for rent privately.

And how much will this cost? Zero! There will be a premium subscription at a later date but as of today, MoveIn.Space/walkthrough is free to use.

Ready to create a property report with your tenant? Go visit MoveIn.Space.

Like this post? Check out our other blog posts that are sure to help anyone who wants to sell or let their home privately:

5 Mistakes Private Landlords Should Avoid

lease a property privately Australia for sale by owner

Tell me and I forget. Teach me and I remember. Involve me and I learn.

  • Benjamin Franklin

As someone who wants to lease a property privately, you have nothing to worry about. ZeroCommisison.com.au is here to guide you and constantly provide relevant information to help DIY landlords like yourself. There’s no better way to learn about the for rent by owner industry than by experiencing it yourself.

But, as another saying goes, it’s always wisest to learn from the mistakes of other people. You don’t want to realize mistakes after the fact.

Many DIY landlords leave plenty of room for mistakes early on. This is understandable, but the decisions you make from the start determine how profitable your enterprise ends up.

We listed 5 mistakes private landlords, especially those new to the job, should avoid. You might gasp at some of these, with palms clasped over your gaping mouth. “I didn’t know leasing my apartment to drifters would hurt so much!”

Well, there’s a difference between a drifter and a transient, but let’s not mince words here. On with the list…

Rookie Mistake #1: Leasing to Friends and Family

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We just have to let this out the gate first. It might seem to make perfect sense that the ideal tenant is someone you’ve known all your life. After all, didn’t your cousin Tony save you from financial problems once?

But this is one mistake you should never, ever, even dare to commit. Blood can boil green when money is involved.

If you intend to screen friends and family as you would a stranger tenant, please, just don’t. Never lease a property privately with strings attached, especially as a favour! You’re setting yourself up for landlord woes later on.

Go for the average Joe or Jane you meet, someone you’re not related to. And definitely not someone you work with!

Rookie Mistake #2: Falling for a Sob Story

How many excuses can you concoct to skip rent? Let us count the ways!

Seasoned landlords have the privilege of hearing the usual sob stories. Would you believe your tenant if he claims the money hasn’t arrived yet? Sure you can, and you should. But that doesn’t mean you have to accept it. Alibi or not, a deadline is a deadline, and you have to be firm from the very beginning.

There’s a reason why patsies are compared to a doormat, and you do not want to be considered lenient and understanding. It’s possible your tenant is having a hard time making ends meet, but remember you’re running a business.

Give them three days and they’ll ask for a week. Be immovable when due date comes.

Rookie Mistake #3: Failure to Screen Tenants Thoroughly

lease a property privately Australia for sale by owner

This is understandable for rookies, their spider-sense for crap tenants needs fine tuning. When you lease a property privately, expect plenty of riffraff coming your way.

Conducting full background checks with today’s technology—hello, Internet–is no longer as expensive or difficult as it once was. With a few tap of the keyboard, you can gather plenty of data online about anybody. This will help you immensely in narrowing your pick.

Don’t take applicants at their word. Always confirm what your gut instinct tells you. An applicant may look the part of the perfect citizen and tenant on paper, and even in person, but so did Hannibal Lecter. You don’t want Hannibal Lecter hosting dinners in your apartment.

Google is your friend. Hang out with him often.

Rookie Mistake #4: Failing to Treat Leasing a Property Privately as a Business

lease a property privately Australia for sale by owner

You’re running a business when you’re leasing a privately. Some signs your head is not in the game: misplaced receipts, poor organization, and co-mingling of personal and business funds.

If you spent a trifle in the business (the apartment is your own, and you barely invested in renovations), manage the regular payouts so you’ll quickly recover capital.

Sure, you can coast by and treat your for rent by owner set-up as a hobby, but not for long. Tenants can be as unpredictable as rabbits in heat. Prepare for a rainy day in case you face the need for sudden eviction or serious renovation.

Rookie Mistake #5 – Not Putting Everything in Writing

lease a property privately Australia for sale by owner

It’s like trusting someone’s word on a spit-ball handshake. If you lease a property privately, verbal agreements also don’t amount to squat. If it’s important enough for a note and signature, don’t hesitate.

Applicants might think you’re obsessing the details, but you’ll have something to show for when your tenant tries to throw a curve ball your way.

“We agreed the security deposit would cover for the shirt I flushed down the toilet!”

Did you? With terms detailed in black and white, you’ll never grip the short end of the stick.

Being a DIY landlord is easy if you set your priorities straight. When you lease a property privately, you’re staking your claim on the rentals market. This means you’re in business for the profit, so mind the rookie mistakes and learn as much as you can. Each mistake is money lost (or unearned), so make each dollar count!

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You might also be interested in these other articles to help you lease or sell a property privately:

 

5 Advantages of Leasing Unfurnished For Rent by Owner Property

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Are you on the fence in deciding to lease your property furnished or unfurnished? This is a common dilemma in For Rent by Owner properties, especially new landlords letting their own apartments for great passive income.

From the tenant’s perspective, renting furnished space typically seems like an appealing option. But that’s only if cost isn’t an issue. And, as most of us know, money can be hard to come by. For certain types of tenants, unfurnished space is the flexible and affordable alternative.

It’s safe to say you’ll have fewer worries leasing unfurnished property. Your only main concern is determining where to store your belongings during the lease. If you plan to rent out long-term, selling most of your stuff makes sense. You can then rent storage space for what’s left.

Unfurnished space is the preference of many DIY landlords, especially those who’ve been in the game long enough to know better.

Here are 5 advantages of leasing unfurnished space. For Rent by Owner property is easier to manage when it’s leased empty!

Advantage #1: Less wear and tear in For Rent by Owner unfurnished homes

for rent by owner Australia DIY landlord

Unfurnished space frees landlords from the responsibility of furniture upkeep. You’ll find tenants willing to rent furnished or unfurnished properties, sure, keep in mind that an unfurnished property is perfect for tenants who want to haul their stuff in and stay long-term.

Tip: Set terms and restrictions on items tenants are allowed to bring in. Filter the stranger stock from the applications you receive.

Are you okay with a tenant who brings in heads of hunted game to mount on your walls? How about a grand piano, or a suspiciously flea-infested couch?

If everything clears your scrutiny, then you simply need to ensure your property stays intact throughout the lease.

Advantage #2: Tenants who prefer unfurnished property are usually for keeps.

for rent by owner Australia DIY landlord

Think of the trouble it took for your tenant to resettle to a new location. If you’re committed enough to take out furnishings from your own apartment, then the same can be assumed of tenants who decide to stake their claim on new soil.

Quick tip: You’ll know your home for rent will be rented for the long haul when the tenant lays out wide carpet.

For Rent by Owner properties are leased with security deposits paid for by the tenants. With a furnished apartment, though, it’s possible your new tenant will jump on your bed and do back flips on your couch, just for kicks. If you have high-quality furniture, this odd behaviour would be enough to keep you awake at night.

Advantage #3: Tenants are generally happier with their own furniture

for rent by owner Australia DIY landlord

It’s like preferring your old, worn couch over a new one. There’s something about worn furniture that makes it seem more ergonomic. Everything yields to gravity (and your bulk) sooner or later.

The ideal tenant is one who is rarely at home, often at work, or on vacation. They basically use your property as a place where they can bathe and sleep. Furnished or unfurnished, you’ll invest less on maintenance when the property for rent is barely used.

If allowing your tenants to bring cherished heirlooms seals the deal, then, by all means, accommodate their request.

Advantage #4: You don’t have to insure a tenant’s furniture.

It’s an option, but you’re well justified not to commit. On the flip side, you can set the security deposit to the bare minimum, enough to cover for your home for rent’s basic facilities.

When interviewing prospective tenants, ask leading:

  • How long did they stay in their last address?
  • Is everyone at home most of the time?
  • If pets are allowed, how many will live at the property for rent?

It’s not unheard of for some tenants to bring in a pack of five large breeds. The more specific you are about what’s allowed and what’s not (definitely not 10 Rottweilers), the less conflicts you’ll experience with your tenant.

Pointed questions also provide insight regarding what the tenant plans to bring in. When renting out unfurnished property, you’ll have the joy of knowing a rowdy cat isn’t using your grandmother’s antique table as a fancy scratching post.

for rent by owner Australia DIY landlord

Advantage #5: You save money

By renting out an unfurnished property privately, you won’t have to buy new furniture. Wouldn’t you hesitate to buy a new couch you’ll never use?

The impression most people have of For Rent by Owner properties is that these are lived-in, homely and cosy. New furniture is not a guaranteed treat for all tenants. The perfect tenant you find who has a stable job and likes to go on frequent vacations, just might turn his back on your apartment upon seeing your less-than-impressive taste in interior design. By renting out an unfurnished property, you spare yourself the risk of losing a prospect.

Also, keep in mind that furnished For Rent by Owner properties have a market of their own. There are enough takers for unfurnished space regardless of location. It’s not a matter of competition.

Think about it: even if you hold on to a security deposit, the thought of entrusting your possessions to a stranger can be unsettling. Do you use hotel beds as trampolines upon check-in? Your tenants might do the same to your couch. Every day.

At the end of the day, unfurnished For Rent by Owner properties are very easy to maintain for you the landlord. You’ll also have an easier time managing the property, especially if you’re leasing a large space. If you want to play it safe as a DIY landlord, the unfurnished property option is very reasonable.

Have a home for rent in Australia? For only $50, ZeroCommission.com.au will list your rental property UNTIL LEASED!

Learn more on our site: ZeroCommission.com.au and lease a For Rent by Owner property today!

You might also want to check out these other blog posts we wrote especially for Australians who want to sell or lease a home privately:

 

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