Words by Taylah Cagalj, Business Development & Leasing Manager at RT Edgar Stonnington
If you’re looking at purchasing a rental property, there are a few key things to keep in mind to set yourself up for success from day one. Here are our top tips:
Building & pest inspection
Organise a professional building and pest report prior to purchasing. This will highlight any existing or potential maintenance issues. Often, problems only become obvious once someone is living in the property and using appliances regularly, which can lead to unexpected costs outside your budget.
Rental appraisal & market advice
Seek a rental appraisal certificate from the sales agent or speak directly with their rental department. Ask about current market conditions, management fees, achievable rental prices, and which types of properties are performing strongly in the area.
Minimum rental standards & compliance
In Victoria, all rental properties must meet minimum standards and have current compliance safety checks in place (gas, electrical, and smoke alarm checks). You can find further information here: Minimum standards for rental properties.
Engage a leasing agent early
Invite your local RT Edgar leasing agent to inspect the property before you buy. They can provide valuable feedback on the likely rental return, tenant demand, and any improvements that could help maximise your yield.
Consider ongoing costs
Factor in additional expenses such as owners corporation fees (if applicable), landlord insurance, property management fees, council rates, and compliance check renewals. It’s also wise to allow a buffer for vacancy periods or unexpected maintenance.
Long-term planning
Think about your long-term strategy, whether your priority is capital growth, rental yield, or a balance of both. This will influence the type of property and location you choose.
By following these steps, you’ll be better prepared to purchase a rental property with confidence and avoid unexpected surprises.
Our rental department can assist with rental appraisals, local market insights, and compliance recommendations, giving you clear confirmation before purchasing your next investment property.
If you would like to discuss your options, please reach out to Taylah Cagalj
