If you are contemplating managing your own investment property, here are seven essential tips to help you optimise your rental returns and secure the most suitable tenants.

1) Market the property

Ensure you are well-informed about the rental prices of comparable properties and consider attending other open homes in the area to gain insights into the local market offerings and to gather effective strategies for showcasing your property.

In order to advertise your property, you can 

• Utilise platforms that accept direct property listings
• Advertise in both major and local newspapers
• Install signage on the property site
• Highlight the property's address to encourage potential tenant research and drive-by "pre-inspections"
• Consult with local real estate agents, as some may offer casual letting services at no cost or for a nominal fee

Remember to think like a tenant when you advertise your property and promote the key items. These include

• Weekly rent
• Number of bedrooms and bathrooms
• Overall condition
• Privacy, security, parking and transport
• Proximity to local shops and facilities
• Any included furnishings or fittings
• Outdoor living features
• Sell the features and benefits

2) Setting the rent

If you are managing your property independently, be prepared to make nuanced adjustments to your rental pricing based on the size and features of your property compared to others in the market. Conduct a thorough analysis of rental rates for comparable properties in your area to accurately determine the optimal rent level.

3) Tenant selection process

Managing property yourself means undertaking a rigorous process to select tenants for your property to ensure they are reliable and can be trusted to live in the property and pay rent on time.

The process includes:

• Understand Legal Obligations - Familiarise yourself with local tenancy laws in Queensland (e.g. Residential Tenancies and Rooming Accommodation Act 2008). Know your rights and responsibilities as a landlord, including bond handling, notice periods, and privacy rules.
• Prepare the Property - Ensure the property is clean, safe, and compliant with safety regulations (e.g. smoke alarms, pool fencing, electrical safety).
  Take high-quality photos and write a compelling listing description.
• Advertise the Property - List on popular rental platforms (e.g. realestate.com.au, Domain, Facebook Marketplace). Include key details: rent, bond, lease term, features, and inspection times.
• Screen Applicants Thoroughly - Use a rental application form to collect:
  - ID and proof of income
  - Rental history and references
  - Employment details
  - Conduct background checks:
  - Verify income and employment
  - Contact previous landlords
• Interview Shortlisted Tenants - Ask about their rental history, reasons for moving, and lifestyle. Look for red flags like inconsistent answers or reluctance to provide references.
• Select the Best Fit - Choose a tenant who is financially stable, has a good rental history, and communicates well. Trust your instincts but back them up with facts.
• Sign a Lease Agreement - Use a standard lease form from the Residential Tenancies Authority (RTA). Clearly outline rent amount, due dates, bond, and responsibilities.
• Lodge the Bond - Lodge the bond with the RTA within 10 days of receiving it.
  Provide the tenant with a receipt and a copy of the bond lodgement form.
• Conduct an Entry Condition Report - Document the property’s condition with photos and detailed notes. Have the tenant review and sign the report.
• Maintain Communication - Be responsive and professional in all interactions.
  Keep records of all correspondence and payments.

Adhering to each step is crucial, as the consequences of selecting an unsuitable tenant can be significant. Disputes, non-payment of rent, or property damage can lead to financial losses that far exceed any savings from managing the property without professional assistance.

Upon receiving responses, meticulously document each interaction and conduct preliminary screenings of potential tenants via phone before arranging in-person meetings. Anticipating significant interest, organise an open house and implement the following strategies prior to attendees' arrival:

• Clean up and make sure the property is tidy
• Air the property - open the windows and doors before the inspection
• Get the carpets steam-cleaned and rubbish removed
• Tidy up the garden and ensure the property has good street appeal
• Ensure the letterbox is clear and properly numbered.
• Maintain an optimal temperature, such as using air conditioning on hot days.
• Incorporate personal touches throughout the property, such as flowers, cushions, and ornaments.
• Prepare all necessary documentation, including a formal application form and tenancy agreement.

What makes a good tenancy application?

• Can and will provide references.
• Easy to deal with on the phone.
• Shows up on time for any inspections.
• Is open with information.
• Will complete an application form in full.
• Responds favourably when advised of a credit or tenancy check.
• Has money ready for initial rent and bond.

What makes a good tenant?

• Pays rent on time.
• Maintains property to a good standard.
• Allows access when planned and requested.
• Advises you proactively of any repairs or maintenance needed.
• Advises you of problems that may affect continuity of rent payments.

4) Follow correct procedures

Engaging in DIY property management necessitates strict adherence to established procedures when overseeing your tenant and property.

• Tenant should be signed up using a standard residential tenancy agreement, and you should put a property condition report together that you both sign off. Taking digital photos of every room is a good idea.
• When you receive a bond, it should be lodged with the local authority, and you should write and keep receipts for all rent in case there are any disputes.
• If the rent is late, an immediate firm, but friendly reminder is essential. Don't harass your tenants or get into personal conflicts/insults with them, keep it professional.
• If the rent is not paid on time or damage occurs, consult your State's Residential Tenancy Authority for advice on demand notices and support from your local tenancy tribunal to seek termination of the residential tenancy agreement and repossession of the property if the problem is not rectified.
• If the tenant does not leave at the end of their contract, you will need an order from the tribunal terminating the tenancy agreement, and a warrant from the State Sheriff to evict the tenant. Do not try and evict the tenant yourself, as large penalties apply.

5) Basic accounting

To effectively manage your investment property, proficiency in handling financial data and documentation is essential. You will need to meticulously monitor rental payments, issue receipts, and maintain comprehensive records of all expenses and transactions.

Staying current throughout the year is crucial. Ensure you claim depreciation on your investment property by utilising a depreciation schedule from a certified quantity surveyor. When in doubt, always seek guidance from your accountant.

6) Rental increases

Ensure that the initial weekly rent set for the property aligns with your expectations, as most states and territories mandate that rent cannot be increased until the tenancy agreement is eligible for renewal, typically after six or twelve months. It is imperative that any rental increases are justified and in line with market conditions. Therefore, diligently monitor local market trends and provide tenants with written notice of any rent adjustments in a timely and professional manner.

7) Inspections

You are permitted to conduct inspections up to four times annually, provided you give your tenant a written notice of seven days. It is incumbent upon the tenant to uphold the property's condition daily and promptly report any damages to you for timely repairs.

Be sure to also check the legislation in your state regarding inspections, particularly in relation to the frequency, notification and entry process.