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LANDLORD GUIDE

The cost of renting out a property

The real cost of a rental is broader than a management fee. Build a property-specific budget for readiness, vacancy, operations, repairs and professional support.

By RentSeekr editorial teamPublished Reviewed

Key points

Pre-rental and setup costs

Inspect first, then prioritise work that affects safety, legality, function and accurate presentation. Cosmetic spending should not displace required work.

  • Safety, minimum-standard and repair work
  • Cleaning, gardening and presentation
  • Photography, floor plans and advertising
  • Insurance changes and professional advice
  • Locks, keys, compliance checks and documentation

Recurring owner costs

  • Council rates and applicable strata or owners-corporation charges
  • Landlord insurance premiums and excess exposure
  • Owner-paid utilities or service charges
  • Routine maintenance and servicing
  • Management, software, accounting or record services

Variable and event-based costs

  • Vacancy between tenancies
  • Letting and re-advertising work
  • Urgent and major repairs
  • Damage not recovered through insurance or bond processes
  • Dispute, tribunal or legal support
  • Travel or local support for a remote property

Create a cash-flow view

Place expected rent and owner costs on a monthly timeline. Add a vacancy scenario and a large-repair scenario. Keep a reserve that can fund urgent action, because legal repair obligations do not wait for a convenient cash-flow month.

Tax and finance boundaries

Interest, expenses, depreciation, ownership structure and capital gains can have material tax consequences, but the treatment depends on the owner and property. Keep invoices and transaction records, then use an appropriately registered adviser.

Sources and further information

Official guidance changes. Check the source for the current rule in your jurisdiction.