Drive around the streets in your local area to see what agents are selling and leasing homes near you. Ask friends and family members who they lease through and if they are happy with their current arrangement and if your comfortable even ask them about their fee structure.

Research!

Use websites like Realestate.com.au or Domain.com.au to look for comparable homes in your area up for lease. Understand who the leasing agent is and how much they are leasing for. If time permits, go to a few open homes, see how your greeted by the agent. After inspecting the home, rate it in relation to what your home has to offer. Is your place worth more or less?

How to choose a real estate agent:

Shortlist your top 5

After researching, make a list of your top five agents based on exposure in your area.

Make Contact:

Call all 5 agents and get a feel for how they act with customers. If your time poor you can send an email, but the call allows you to get a personal touch straight away. You need to start working out if they are a fit for you. Do they give you time, and answer your questions? Do they explain the process to you and do you feel comfortable with it? How are they unique to the other agents? Get them to send through their contract fees and charges.

Make sure you read the fine print:

To rent out your property with an agent you will be charged a % of your weekly rent as a management fee which covers the cost of:

There will most likely be a letting fee (usually a week’s rent) once your original tenants are secured and a re-letting fee if subsequent tenants are needed.

Having gone through this process myself, I have seen costs in contracts additional to the above that include admin fees, a lease renewal fee (equivalent to 50% of 1 week rent) just for existing tenants to renew a lease, advertising fees, home inspection fees, end of year annual statement preparation fees, and sundry fees. Literally fees for everything!

Before you go for the agent offering you the most competitive % rate for your management fees, make sure your comparing apples with apples and include all fees to understand a yearly cost.

I have put together a simple comparison tool to help you compare up to 5 agents.

Click here to download: Comparing Real Estate Agent Leasing Fees Tool.

Negotiate. Negotiate, Negotiate:

Once you have completed the above comparison spreadsheet you’re now in a position of power to compare agents against each other. You have absolutely nothing to lose by asking for certain fees to be waved or management fees to be reduced. Agents know most people feel uncomfortable asking for a better deal. From experience there is always wiggle room. In this process you will be able to make changes to your comparison sheet to ensure you have recorded any alterations.

Pick an agent and then negotiate again.

Once you have negotiated, pick the one you want to work with. Don’t sign up straight away though, continue to play them off. Let them know you have done your research, you like their agency however you need something to sweeten the deal. Is there anything further they can do on a particular fee or that a competing agent offered a lower management fee and you would like them to match it to secure the rental. Make sure you and your agent are aligned on the proposed rental pricing before signing a contract.

Make your house sparkle:

Ensure your house is presented as well as possible for professional photos. It’s important that you have already started the decluttering process (see guide for Packing up your home) and removed any family photos etc. People want to visualise your place as their own. Make sure you get to review the photos and your home description before it goes live online.

Make open inspections count:

It really is tough trying to pack up a home and keep it clean and tidy for prospective tenants to walk through at open homes, but it’s worth the work. Make sure your home is light, clean and fresh. Turn on all the lights, open blinds/curtains and ensure your bathrooms and kitchen are clean. Having multiple potential tenants put in application allows you to have choice on who you feel would be the best fit for your home.

Select your tenant:

Work with your agent to get past rental history references and make sure these check out. Your agent will then secure a deposit from your tenants, followed by the signing of a formal leasing agreement.

Bonus Tip:

Get the insurance you need to make sure you property is protected now that you are a landlord. As part of your insurance ensure to cover the contents left behind (carpet/ curtains, kitchen appliances etc.)