What Do I Need To Know To Rent My Property As A Holiday Rental?
If you have a property that you would like to rent out, there are a number of factors you should take into account in deciding whether to rent the property as a holiday or residential rental. For example, the location of the property may add to demand. If, for example, it is near a beach, it may make it more desirable and quite easy to rent out as a holiday rental. Another practical consideration is whether your property is furnished and will be at the time you wish to rent it- this is an essential requirement for a holiday rental but not for a residential one. If you also want to use it and to spend some time there you are better off renting it as a holiday rental.
The first real question is whether you need to worry about the law regarding tenants and rental properties. In Australia, there are different laws that apply to holiday versus residential rentals that need to be taken into account. These legal requirements differ depending on what state or territory the holiday rental is located in. If you plan to rent your property out as a residential rental, there are very strict legal requirements regarding rental contracts, rent fees and inclusions, termination or having your tenant leave and amount of and lodgment of bond for example.
Holiday rental is much easier in terms of understanding any laws you need to abide by. There is very little law that governs holiday letting apart from the usual consumer law protection which requires the advertisement to match what you deliver as a property. The main thing you need to be aware of is that there is no regulation regarding actual rental of holiday properties provided you do not meet the minimum residential rental timeframe for your holiday rentals. In other words, you need to ensure your holiday rental periods are below the residential rental requirement. This is different in each part of Australia, however, if you meet Queensland’s requirement, of under 6 weeks, it is the lowest timeframe and you will not have to worry about rental legislation.
The most important item you need is a holiday rental agreement template. Once you have a holiday rental agreement, you can make it very easy to re-use by setting it up as a template and adding only the new guest’s details. The holiday rental template should protect you in a number of ways: to show there is a contractual arrangement and fees owed in return for rental of your property, to give right to claims for any damages and to ensure you and your renter are clear on terms. Your holiday rental agreement is a contract of agreement between you and your guest; it clarifies your terms that they agree to help avoid misunderstandings and also provides you with a right to charge a fee out of any security deposit for any damage. It helps clarify what you include in the rental so that you can help avoid any consumer law issues and it gives rights to both you and your renter under your contract. A holiday rental agreement also makes you look more professional and gives comfort to any potential holiday renter.
In addition, most insurance companies require you to have a holiday rental agreement in place directly with your renter before any insurance claim may be processed.
You next need to decide if you will manage your property or hire someone else to do this. There are professional firms but they often charge high fees and may not provide the personal service you want. It may be an idea to see if you have a friend, neighbour, stay-at-home mother who would be interested in working with you as this could provide a perfect part-time income for them. Whatever you decide, ensure you have a contract of agreement with your manager.
The final note is deciding where and how to advertise-there are some great rental websites that do not cost a lot to advertise and with the internet so widespread, your audience is now the world!