Knowing how to rent out your house or unit when moving overseas can save you a lot of stress. While you are enjoying your life abroad, the last thing you need is to be worried about your Australian home. Renting it out helps ensure it is looked after, while providing income that can help offset your travel costs.
Here we explore the different things you can do with your house or unit when you are moving overseas. We will take a closer look at the main options you have for managing your home while you are away. We will also share our tips for preparing for your international adventure and making it as stress-free as possible.
Leaving your property vacant
The most obvious – and in some ways, easiest – option is for your property to remain vacant while you are overseas. If you are unsure of how long you will be away, this would allow you to return at any time. Similarly, if you may need to return to Australia periodically while based overseas, your home would be available whenever needed.
However, this flexibility comes at a price as you will still need to cover all of the usual ongoing costs. This includes mortgage payments, insurances, council taxes, and utility connections – though usage charges should be much lower. You may also need to engage additional support, like a cleaner or gardener, to ensure everything is maintained in your absence.
You should also check what impact leaving your home vacant will have on your home insurance. Due to the increased security risk, most insurers treat “unoccupied” properties differently, with some even voiding your policy. This means that, if something does go wrong while you are away, you may not be covered.
The definition of an “unoccupied home”, and how it is treated, varies depending on the insurance provider. As such, you will need to consult the product disclosure statement for the terms and conditions of your specific policy. Alternatively, you may want to contact your policy provider to discuss your travel plans and how to ensure continued coverage.
Engaging a house sitter
If you would prefer that your property is occupied while you are away, you could organise a house sitter. This would provide the peace of mind that your property is being looked after, while still allowing you some flexibility. This approach also gives you the most control over who is living in your property while you are overseas.
You have two main choices when picking a potential house sitter – a family member or friend, or an experienced sitter. Both of these options present a range of potential personal and financial benefits and risks. The most suitable choice will also depend on a range of personal, financial, and logistical factors.
While it may seem logical to engage a sitter you already know, existing personal relationships can complicate such an arrangement. This is particularly true if something goes wrong, as you are much less likely to formalise a lease agreement. As a result, damage to your home can easily lead to damage to your friendship.
Generally, family and friends will also expect to house sit for free, or at least a significantly reduced rental rate. So, even if you do agree to formalise a lease, the terms will generally be more favourable to them.
Similarly, if you opt for an experienced sitter, they will often expect to be paid for their services. While there are unpaid house sitting platforms, these have the same limitations as engaging a family member or friend. And, either way, you will also need to cover their utility usage and other ongoing costs throughout their stay.
Leasing your property
Generally speaking, the most financially savvy option is to rent your home out while you are away. This approach allows you to use your property to generate income, which can help subsidise your travel costs. A formal lease agreement also provides the greatest level of financial and legal protection while you are out of the country.
If you are thinking about renting out your house or unit while you are overseas, you will need to decide:
- Who will manage the property: Managing your property yourself should help maximise your rental income but can also be extremely time-consuming. Alternatively, engaging a professional property manager may cost a little more, but should save you significant time and stress. A good property manager will also streamline communication and decision making processes, and work around the limitations of time zones.
- Whether to offer your property furnished or unfurnished: Leaving your furniture in place could make your move easier and maximise your potential rental income. However, it also increases the risk of damage and could limit the pool of potential rental applicants. As such, depending on the type and location of your property, offering it unfurnished could be the better option.
- How long you will lease your property for: The length of lease you offer will impact both the type and volume of potential tenants your home attracts. Most renters prefer the stability of a 12 month lease, particularly if the property is being offered unfurnished. As such, if you are offering a shorter lease term, you may need to consider lowering the rent rate.
- When you will start the leasing process: Generally speaking, renting out a property takes 5 – 6 weeks from initial advertising to the start of the lease. However, this depends on the time of year, state of the market, and if rent aligns with market expectations. As such, it is worth working with a local market expert to decide when to start looking for a tenant.
It is also worth understanding the insurance impacts of renting out your house or unit while you are overseas. Building insurance policies usually do not cover damage caused by tenants, particularly if it is due to negligence or maliciousness. As such, it may be worth taking out landlord insurance for the period your property is being leased.
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Other key considerations when moving overseas
In addition to deciding how to rent out your house or unit, when moving overseas, you should also think about:
- What you need to take with you: When moving overseas, you should break your packing into two groups; stuff you need now and stuff you need later. The things you need straight away – like some clothes, toiletries, medications, important documents, and electronic devices – should travel with you. Whereas everything else – seasonal clothing, furniture, sports equipment – can be shipped over once you have settled into your new location.
- What to do with the stuff you are leaving behind: Depending on how long you will be away, it may not be worth shipping larger items, like your furniture. Instead, you may choose to leave these items in your home, and rent it out fully furnished. Or, if you would prefer to avoid the issues noted above, you could put everything you leave behind into storage.
- Who you need to tell: Just like when you move locally, there are a range of organisations you should notify before heading overseas. This includes any banking, financial, insurance, utilities, or health service providers that you deal with regularly. You may also want to organise a mail hold or redirection service to ensure you do not miss anything important.
- Who will be your proxy: Thanks to the internet, you should be able to manage most things remotely while you are overseas. However, it can still be useful to have someone on-the-ground who can act on your behalf, while you are away. This is particularly true if you are renting out your home, as quick decisions may need to be made.
Want more information?
If you are moving overseas and would like to discuss renting out your house or unit, contact Local Agency Co. Our team of rental market experts can work with you to choose the best approach for you and your property. We can also guide you through every step of the renting process, from initial appraisal to leasing and ongoing management.
CLICK HERE TO SPEAK WITH AN EXPERIENCED LOCAL PROPERTY MANAGER