Preparing a small home for tenants

Check rental requirements, likely expenses and local rents before you let your new home.

A small home can provide rental accommodation on land you already own. Before relying on rental income, check local demand and prepare a budget that includes construction, finance and ongoing ownership costs.

A new building still needs to meet the requirements that apply to rental housing. Check the Healthy Homes Standards, smoke alarm requirements and the information required in the tenancy agreement. Do not assume that Building Code compliance alone covers every rental obligation.

Keep the design, building and completion records together. Tell your insurer and lender about the intended rental use and confirm any conditions before tenants move in.

Compare similar properties and current Tenancy Services market-rent information for your area. The location, size, parking, privacy and condition of a home can all affect its rent.

Decide whether to manage the tenancy yourself or appoint a property manager. Allow for rates, insurance, repairs, maintenance, management fees, tax and periods without a tenant. Gross rent is not the amount you keep.