Here’s something that surprises most investors.

Let’s say you buy a New Build property. The builder builds it. You get to settlement and pay the money.

You think – “Great, I’ve paid the money. I own the house. Time for my tenant to move in.”

Not so fast. Not all New Build properties are ready for tenants to move in straight away.

In fact, some New Builds are missing key features that make it illegal for you to rent them.

That’s why investors shouldn’t just look for properties; you need to look for Rent-Ready properties.

But, what is a Rent-Ready property? And how do I tell if the property I’m looking at is Rent-Ready? Here are the factors to look out for.

What is a Rent-Ready property?

Here at Opes Partners we were frustrated. We looked at the construction industry and saw a lot of New Builds going up.

Developers would say their properties were “turnkey” - an investor could buy the property and rent it out straight away.

Investors would buy them, but then later those investors would have to spend even more money to get their property ready to rent.

In my experience, not all developers interpret “turnkey” in the same way.

That’s why we came up with this new term: Rent-Ready.

It’s a set of standards that show if a New Build property can be rented straight away – without any extra cost above the purchase price.

Here's the full Rent-Ready checklist.

To stop developers from calling their properties Rent-Ready (when they’re not) we even trademarked the term. That way we can make sure only properties that are truly Rent-Ready can use the phrase.

Here’s what it takes for a property to be Rent-Ready.

More from Opes:

• What do I get if I invest with Opes Partners? (Article)
• The 5 Healthy Homes standards - and why your property might fail (Article)
• Turnkey vs Progressive Payments - What is better for property investors (Podcast)

#1 – Curtains or blinds in all lounges and bedrooms

Some “turnkey” New Build properties don’t come with blinds or curtains to cover the windows. This can cost up to $10,000 to install.

Some developers charge extra for these, even calling their properties turnkey.

So, for a property to be Rent-Ready the blinds and curtains must be included in the purchase price.

#2 – Healthy Homes compliant at settlement

Healthy Homes compliance is another grey area.

Yes, many New Build developers build to the Healthy Homes standards, but not all do.

To avoid surprises, make sure it’s spelled out in your contract. It should state that properties will be built to the Healthy Homes Standards.

For existing properties, Healthy Homes compliance is even less certain. Many older homes are not compliant due to missing heat pumps or poor insulation. They often fail to meet draught standards.

So, there’s no guarantee an existing property will pass the requirements.

#3 – Wardrobe in every bedroom + joinery

You wouldn’t believe it, but one client of ours once worked with a developer who built a house ... but the builder didn’t put rails in the wardrobes. 

They also didn’t put a railing on the staircase.

The developer argued the wardrobe met the “turnkey” specifications, but it wasn’t fit for purpose. 

After all, how can anyone use a wardrobe without rails to hang their clothes?

That’s why a Rent-Ready property has wardrobes in every bedroom. It should also have the rails and joinery the wardrobe needs.

#4 – All essential appliances – oven, hob, dishwasher, and rangehood

For a property to be Rent-Ready it should also include the essential appliances.

Sometimes developers call their properties “turnkey”, but then the house doesn’t include a dishwasher or oven.

For a property to be Rent-Ready it needs an oven, dishwasher, rangehood and hob.

#5 – Letterbox, clothesline, driveway

You might think it’s obvious that a home should come with a driveway or a letterbox, but these are often left out of off-the-plan contracts.

It will surprise you how often New Build houses don’t include letterboxes; they’re often considered “extras”.

But, for a property to be Rent-Ready, these must be included.

What other things are on our ‘Rent-Ready’ checklist?

In addition, we also include more standard components for absolute clarity:

1. Outdoor landscaping

This includes things like boundary fencing as well as outdoor landscaping. This could be a patio or a deck if it’s on the plans.

2. Bathroom

In the bathroom it’s essential to have more than just the basics. So a Rent-Ready property should have towel rails, a bathroom heater and proper ventilation. We also expect mirrors in wet areas, and toilet roll holders to complete the space.

3. Plugs and fittings

Essential electrical features must include easily accessible power plugs. This includes cabling for a satellite TV setup, and well-positioned light fittings.

4. Miscellaneous

Finally, Rent-Ready properties should also include a garage door remote (if applicable) as well as a cutlery insert in the kitchen, and a laundry tub.

What if some of these items aren’t included in my contract?

If these features aren’t in your contract and specifications, they may be missing once the property is built.

The only way to make sure your New Build property is ready to rent … is to buy a certified Rent-Ready property.

If it’s not certified Rent-Ready, then it might not be ready to rent. There could be extra costs.

Here at Opes Partners we specialise in finding certified Rent-Ready properties for investors. If you would like to talk to one of our team about looking at Rent-Ready properties you can book a free meeting here.