Renting the Retirement Home takes care


With the winter weather setting in Freddy was enjoying having some extra time now that he had dried off the cows. He had recently bought a house in town that he intended to move into as part of the retirement plan. Pebbles had called in for an early morning catch up over a cup of tea.

“How’s everything going, Dad?” Pebbles asked.

“Great” Freddy exclaimed.  “I have decided to rent the new townhouse until I decide what to do on the farm.  I am just writing the advert now.”

“Are you doing it yourself?” Pebbles questions.

“Yeah, yeah” says Freddy.  “It can’t be that hard, what do I need to know?”

“You need to be careful that you follow the right process” says Pebbles.

  • You will have to decide if you are renting for a fixed term or not;
  • You need to establish the market rent to work out what rent to charge;
  • Decide the wording for your advert to make sure you attract the tenants you want;
  • Make sure all the maintenance is up to date;
  • Set up a separate bank account.  It is a good idea to have a buffer in case the rent doesn’t go in when expected;
  • You should get a pre-tenancy application form signed.  This helps to get information from a prospective tenant, you should do credit checks and phone referees of tenants;
  • Once you have chosen a tenant you will need to sign a Tenancy Agreement and a Bond lodgement form;
  • You will also have to give the tenants written notice when you decide to move into the house.

“Well that all sounds very sensible” says Freddy.  “I will keep that in mind”.

“Now how’s that pot of tea coming along?”

The content of this document is necessarily general and readers should seek specific advice on particular matters and not rely solely on this document. 

If you would like more information on any of the topics in this document, please contact your usual Auld Brewer Mazengarb & McEwen adviser. 

 

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