Finding a great tenant is the most important step in self-managing. A good tenant pays rent on time, maintains the property, communicates issues early, and stays for years. A bad tenant can cost you thousands in lost rent, damage, and legal fees.
This guide walks you through the complete process—from preparing your property to handing over the keys.
This is Part 3 of our 6-part series on self-managing rental properties in NSW.
Quick Summary
- Prepare your property to be tenant-ready before listing (repairs, cleaning, safety compliance)
- Research comparable rentals to price correctly—overpricing costs you more in vacancy than a lower rent
- List on realestate.com.au and Domain ($150–500 total)
- Screen tenants thoroughly: references, employment, rental history
- Use the standard NSW lease and lodge bond within 10 business days
Step 1: Preparing the Property
Before you advertise, the property needs to be genuinely tenant-ready. This isn't just cosmetic—it's about meeting your legal obligations and avoiding disputes later.
Pre-Rental Walkthrough
Walk through the entire property as if you're a tenant viewing it for the first time. Check:
- Every room: Walls, floors, ceilings, windows, doors
- All fixtures and fittings: Lights, power points, taps, toilets, appliances
- Outdoor areas: Gardens, fences, paths, gutters
- Safety equipment: Smoke alarms, locks, pool fencing (if applicable)
Your tenant will document everything in the condition report. Any existing damage or wear should be addressed now or clearly documented.
Essential Repairs
Fix issues that will become problems:
- Plumbing: Test every tap, check for leaks under sinks, flush all toilets
- Electrical: Test every power point and light switch
- Windows and doors: Ensure all open, close, and lock properly
- Floors: Address carpet stains, loose tiles, damaged floorboards
- Walls: Patch holes, touch up paint where needed
- Appliances: Service or replace anything unreliable
Under NSW law, you must provide premises "fit for habitation." If a tenant moves in and discovers significant issues, they can apply to NCAT for rent reduction or break the lease without penalty.
Safety Compliance (Non-Negotiable)
These aren't optional—they're legal requirements:
Smoke alarms
- Must be installed on every level
- Must be photoelectric type (NSW requirement for rentals)
- Must comply with AS 3786
- You must test them at least annually
Pool/spa fencing
- Must comply with current standards
- Get a certificate of compliance before advertising
Window locks
- Properties built or significantly renovated after 1997 need compliant window safety devices above ground floor
Electrical safety
- All electrical items must be safe
- Consider a professional electrical safety check ($150–250)
Link: NSW Fair Trading - Safety and Security
Presentation
First impressions matter for attracting quality tenants:
- Deep clean throughout (or hire professionals, $200–400)
- Steam clean carpets if they're marked
- Clean windows inside and out
- Tidy gardens and mow lawns
- Remove all personal items and clutter
Step 2: Setting the Right Rent
Price it wrong and you'll either leave money on the table or sit vacant for weeks. Vacancy is expensive—every empty week costs you a full week's rent.
Research Comparable Properties
- Search Domain and realestate.com.au
- Filter by your suburb, bedrooms, bathrooms, parking
- Look at recently leased properties (not just current listings—those might be overpriced)
- Compare honestly: How does your property's condition, age, and features stack up?
- Factor in current market: Vacancy rates, seasonal patterns, local demand
Pricing Strategy
- Don't overprice hoping to negotiate down—rental markets don't work that way. Properties are taken at the advertised price or passed over.
- A vacant week at $700/week costs you $700. Dropping $20/week only costs $1,040/year—and you'll likely fill it faster.
- Round numbers work: $680 or $700, not $697.
Market Indicators
Signs you might be overpriced:
- Few enquiries in the first week
- People viewing but not applying
- Similar properties leasing faster
Signs you're priced right:
- Multiple enquiries within days
- Applications from qualified tenants quickly
- Your property compares favourably to current listings
Step 3: Photography That Sells
Your photos are your first (and sometimes only) chance to get tenants through the door.
DIY Photography Tips
You don't need a professional for most properties. A modern smartphone works well if you follow these principles:
Preparation
- Declutter completely—empty rooms photograph larger
- Open all curtains and blinds
- Turn on all lights (even during the day)
- Make beds, clear benchtops, hide bins
Technique
- Shoot during daylight hours
- Stand in doorways and shoot straight across the room
- Get wide shots showing the full space
- Keep camera level (no tilting)
- Take 3–4 shots of each space and choose the best
What to capture (aim for 12–20 photos):
- Living areas (multiple angles if open plan)
- Kitchen (overall and any special features)
- All bedrooms
- All bathrooms
- Laundry
- Outdoor areas (backyard, balcony, courtyard)
- Parking
- Street frontage/building exterior
- Any standout features (views, fireplace, pool)
When to Hire a Professional
Consider professional photography ($150–250) if:
- Your property commands premium rent ($800+/week)
- It has unique features that need capturing (views, architecture)
- You're struggling to get enquiries
Step 4: Advertising
Where to List
Essential (90%+ of tenants search here):
- realestate.com.au — Australia's largest property site (39+ million monthly visits)
- Domain.com.au — Second largest (16+ million monthly visits)
Optional:
- Facebook Marketplace and local rental groups (free, but lower quality leads)
- Flatmates.com.au (for share house situations)
Listing Costs
You can't list directly on these platforms as a private landlord—you need to go through a listing service:
| Service | realestate.com.au | Domain | Both |
|---|---|---|---|
| RentBetter | From $199 | From $99 | From $249 |
| For Sale By Owner | From $199 | From $99 | From $249 |
Prices vary by listing type and duration. Basic listings work for most properties; premium upgrades help in competitive markets.
Compare this to an agent's letting fee of $1,000–1,500. Even with advertising costs, you're saving significantly.
Writing Your Listing
Structure your description:
-
Opening line (the hook): "Bright 2-bedroom apartment in the heart of Newtown with north-facing balcony"
-
Key features (what makes it stand out): Updated kitchen, air conditioning, secure parking, walk to station
-
Room-by-room details: 2 bedrooms with built-in robes, modern bathroom with separate toilet, open-plan living/dining
-
Outdoor/parking: Private courtyard, lock-up garage, shared laundry
-
Location benefits: 5-minute walk to station, cafes and shops nearby, close to schools
-
Practical details: Available [date], 12-month lease preferred, pets considered
Required Disclosures
NSW law requires you to disclose:
- If the property is in a strata scheme (and relevant by-laws)
- If the tenant will pay water usage charges
- Any proposed rent increases during the lease
- If the property is listed for sale
- Any upcoming renovations or building works affecting the tenant
Link: NSW Fair Trading - Starting a Tenancy
Step 5: Conducting Inspections
Open Inspections vs Private Viewings
Open inspections (set times, multiple attendees):
- More efficient—see many potential tenants at once
- Creates urgency and competition
- Best for high-demand properties
Private viewings (by appointment):
- More personal—better for building rapport
- Can ask questions and gauge interest
- Better for unique or premium properties
Most landlords do 2–3 open inspections (e.g., Saturday 11am, Wednesday 5pm) before switching to private viewings if needed.
What to Observe
During inspections, note:
- How do they present themselves?
- Are they punctual?
- Do they ask sensible questions?
- Do they seem genuinely interested?
- Who will actually be living there?
These aren't screening criteria—just observations to inform your later assessment.
Step 6: Tenant Screening
This is where you protect yourself. Thorough screening prevents most landlord nightmares.
Application Forms
Use a standard rental application form (available through listing services or NSW Fair Trading).
You can request:
- Full name, date of birth, contact details
- Current address and rental history (past 2–3 properties)
- Employment details and income
- References (previous landlords, employer)
- Photo ID (driver's licence or passport)
- Number of occupants
- Pet details
You cannot ask about:
- Race, religion, ethnic background
- Sexual orientation or gender identity
- Disability or medical conditions
- Whether they have children
- Marital status
- Political beliefs
Reference Checks (Critical)
Previous landlords are your most valuable reference. Always call—written references can be faked.
Questions to ask:
- "Can you confirm [name] rented from you at [address] from [dates]?"
- "Did they pay rent on time throughout the tenancy?"
- "How did they maintain the property?"
- "Were there any issues with neighbours or lease violations?"
- "Was the bond returned in full?"
- "Would you rent to them again?" ← Most revealing question
If there's hesitation on that last question, dig deeper.
Employer verification:
- Confirm employment is current
- Confirm income (with tenant's permission)
- Ask how long they've been employed there
Income Verification
Standard rule of thumb: tenant income should be at least 3× the weekly rent.
For a $700/week rental, that's $2,100/week or ~$109,000/year gross income (or combined income for couples).
Request:
- Recent payslips (2–4 weeks)
- Employment letter on company letterhead
- If self-employed: tax returns or accountant letter
Red Flags
Be cautious if:
- Can't provide previous landlord contact details
- References are uncontactable or vague
- Employment story doesn't match documentation
- Income is well below the 3× threshold
- Multiple addresses in quick succession (moving every 6 months)
- Offers to pay 6–12 months upfront in cash (often a scam)
- Pressures you to skip reference checks
Tenancy Database Checks
Services like TICA and National Tenancy Database list tenants with previous breaches (unpaid rent, property damage, tribunal orders).
Cost: $15–30 per check. Worth doing for peace of mind.
Step 7: The Lease Agreement
Use the Standard NSW Lease
This is mandatory. NSW law requires use of the standard residential tenancy agreement.
Download it free from NSW Fair Trading. Don't use:
- Old pre-2010 leases
- Templates from other states
- Random agreements from the internet
Key Terms to Complete
- Rent amount and payment frequency (weekly, fortnightly, monthly)
- Lease term (fixed 6 or 12 months, or periodic)
- Bond amount (maximum 4 weeks rent)
- Who pays water usage (if separately metered and water-efficient)
- Included fixtures and chattels (list appliances, furniture)
- Special conditions (pet agreements, garden maintenance, etc.)
Special Conditions
You can include reasonable terms like:
- Specific pet approvals and conditions
- Garden/lawn maintenance responsibilities
- Requirements for professional carpet cleaning (if carpets were professionally cleaned at start)
You cannot include:
- Penalty clauses ("$100 fine for late rent")
- Terms that contradict the Act
- Clauses waiving tenant rights
Fixed-Term vs Periodic
Fixed-term (6 or 12 months):
- Provides certainty for both parties
- Tenant gives 14 days notice at end; you give 30 days (with valid reason under 2025 laws)
- Most common for new tenancies
Periodic (month-to-month):
- More flexible
- Tenant gives 21 days notice
- You give 90 days notice (with valid reason under 2025 laws)
Most landlords prefer fixed-term for the first lease, converting to periodic after.
Step 8: Bond and First Rent
Bond Amount
NSW allows up to 4 weeks rent as bond.
For a $700/week property: maximum $2,800
Lodge Bond Within 10 Business Days
Once you receive bond money, you have 10 business days to lodge it via Rental Bonds Online.
This is critical:
- Failure to lodge is a criminal offence
- Fines up to $2,200
- You may forfeit your right to claim against the bond later
Setting Up Rent Payments
Most landlords use direct bank deposit. Provide:
- Your BSB and account number (consider a dedicated rental account)
- Payment reference (property address or tenant name)
- Payment frequency and due date
- Your contact details for any issues
Avoid:
- Cash payments (no paper trail)
- Cheques (can bounce, slow to clear)
Step 9: Handover
Before Handing Over Keys
Confirm:
- Lease signed by both parties
- Bond received and lodgement initiated
- First rent payment received
- Condition report completed together (see Part 4)
- Copy of signed lease provided to tenant
At Handover
- Walk through the property together
- Demonstrate any systems (alarm codes, garage remotes, heating/cooling)
- Hand over all keys, remotes, and access devices
- Show them meter locations
- Confirm emergency contact details
Provide a Welcome Pack
A simple document covering:
- Your contact details and preferred contact method
- How to report maintenance issues
- Rent payment details (BSB, account, reference, due date)
- Bin collection days
- Strata/building manager contact (if applicable)
- Any relevant house rules or building by-laws
What's Next
Now that your tenant has moved in, the next post covers Day-to-Day Property Management—condition reports, inspections, maintenance, and rent collection.
Full Series:
- Is Self-Managing Right for You?
- NSW Rental Laws Every Landlord Must Know
- Finding Your First Tenant (this post)
- Day-to-Day Property Management
- When Things Go Wrong
- Tax Guide for Australian Landlords
Sources & Further Reading
- NSW Fair Trading - Starting a Tenancy — Official forms and guidance
- Rental Bonds Online — Bond lodgement portal
- realestate.com.au — Property listings
- Domain — Property listings
- RentBetter — Private landlord listing service