Building an Investment Property? What Landlords Need to Know About Tenants, Pets, Fees and Compliance

12th October 2026

Finance & Budgeting Pre-Construction Legal & Contracts First Home Buyer Investor Upsizing & Downsizing

Building an investment property? Learn how to choose a property manager, compare fees, plan for rental compliance and create a home renters want.

Building an Investment Property? What Landlords Need to Know About Tenants, Pets, Fees and Compliance

Building an investment property involves more than choosing a floor plan and finding a tenant. Once the keys are handed over, property management fees, maintenance, rental compliance and tenant relationships all become part of the picture.

Getting these things right starts well before your first rental payment arrives.

In this episode of the Home Building Hub podcast, Colin Bischof and Darren Brennan speak with Ben Pitt from Barry Plant in Ballarat about what landlords should understand before renting out a home. From choosing a property manager to selecting practical inclusions for a new build, the discussion offers a useful starting point for first-time and experienced investors.

A note on location and timing: The episode primarily discusses Victoria, including Ballarat. Tenancy laws vary across Australia. The Victorian guidance below was checked against Consumer Affairs Victoria information on 3 November 2026. Figures quoted from the episode are examples, rather than current quotes or guaranteed outcomes.

What does a property manager actually do?

A property manager does much more than collect rent. They coordinate the relationship between the rental provider, renters, tradespeople and compliance providers.

Ben highlights several key responsibilities:

• Reviewing market rent and discussing potential rent increases.
• Managing rental agreements and renewal conversations.
• Coordinating maintenance and responding to urgent problems.
• Conducting routine inspections and reporting on the property’s condition.
• Helping owners understand compliance obligations.
• Organising rental payments, statements and agreed invoice deductions.

Good communication sits at the centre of all of it. A broken hot water system can be stressful for the renter and an unexpected expense for the owner. A capable manager needs to explain the situation clearly, organise the next step and keep everyone informed.

For someone building their first investment property, this support can be particularly valuable while learning how rental ownership works.

How to choose a property manager for your investment property

It is understandable to compare management fees when you have just committed a significant amount of money to a property. But the percentage alone does not tell you how well your investment will be managed.

Ben encourages owners to consider whether they can build a productive working relationship with the person looking after their home.

Before appointing a manager, ask:

• Who will manage my property day to day?
• How do you assess rental applications and check permitted references?
• How often will you inspect the property and send reports?
• What happens when a renter reports an urgent repair?
• How do you track safety checks and changing requirements?
• How do you recommend rent reviews and manage renewal discussions?
• What is included in your fee, and what costs extra?
• Have you managed new builds in this local market?

Ben describes his office’s practice of conducting routine inspections twice a year and contacting owners afterwards. Treat that as an example of service delivery, rather than a national inspection rule.

Agree on communication expectations upfront. You should know when to expect an update, who makes decisions and what happens if your usual manager is unavailable.

Property management fees: compare the dollars as well as the percentage

Why might an agency in a regional location charge a higher percentage than one in Melbourne?

Ben explains that local rents, competition, travel and operating costs can all affect pricing. A higher percentage does not necessarily translate into a much larger weekly fee.

He uses these examples in the episode:

Example

Weekly rent

Management fee

Weekly management cost

Melbourne property

$800

4.4%

$35.20

Ballarat property

$500

7.7%

$38.50

The weekly difference is $3.30, despite the different percentages. These figures illustrate the calculation only and are not a guide to current market rates.

Request a written fee schedule and confirm:

• Whether GST is included.
• Which rent receipts the percentage applies to.
• Whether letting, advertising or renewal fees apply separately.
• Whether inspections, tribunal attendance or other services cost extra.
• When rental income will be paid to you.
• How maintenance and compliance invoices are authorised and deducted.

Ben’s office offers monthly or twice-monthly owner payments. Your agency’s arrangements may differ, so factor payment timing into your cash flow planning.

Rental compliance: a new build still needs attention

A new home may have fewer age-related maintenance issues than an older property. It still needs to meet the requirements for being offered as a rental.

Do not assume that construction handover means every rental obligation has been addressed. Ask your property manager to review the home’s readiness before advertising.

In Victoria, Consumer Affairs Victoria states that rental properties must meet minimum standards before advertising and before the renter moves in. Owners and agents must also retain records showing compliance. The standards cover matters such as locks, bathrooms, kitchens, heating, ventilation and structural soundness, subject to the applicable rules.

For safety checks, current Victorian guidance includes annual smoke alarm checks and electrical safety checks every two years. Gas safety checks are also required every two years where the property has gas appliances, fixtures or fittings.

Read the official guidance on rental minimum standards and changes to Victorian rental laws for the requirements that apply to your property.

How much should landlords budget for compliance?

In the episode, Ben suggests roughly $400 to $500 a year for a safety-check service arrangement where everything is otherwise in order. He also notes that costs can rise when a property becomes vacant or needs further work.

This is an episode estimate, not a statutory fee or a complete ownership budget. Ask for an itemised quote showing scheduled checks, any minimum standards assessment and the separate cost of repairs or upgrades.

Plan ahead for heating, cooling and energy efficiency

The episode discusses upcoming cooling and draughtproofing requirements. These should be checked against published rules rather than interpreted from references such as “March next year”.

Consumer Affairs Victoria advises that new energy efficiency standards will begin in phases from 1 March 2027, with different triggers for different upgrades. For cooling, an energy-efficient fixed system with an outlet in the main living area will be required at the start of a new rental agreement from that date. All rental properties must have cooling from 1 July 2030, regardless of lease status.

Check the minimum energy efficiency standards before choosing equipment or deciding whether an existing system is suitable. Confirm any applicable exemptions with an appropriately qualified adviser.

Choosing tenants: use a fair and compliant application process

Ben describes the effort involved in assessing applications and verifying information. His broader point is useful: choosing a renter deserves care and attention.

However, owners and agents must work within current application, privacy and discrimination rules.

Victoria now requires the prescribed rental application form. Consumer Affairs Victoria says agents and rental providers can only ask for information allowed by that form. This includes specified information relevant to identity, rental or residential history and capacity to pay rent.

The official guidance allows employment details and limits the financial and identity documents that may be requested. The episode’s comments about what applicants do or do not have to disclose should therefore not be used as a current application checklist.

Ask your property manager how they follow the Victorian rental application requirements, verify permitted information and protect applicants’ personal details.

Pets in rental properties: understand the permission process

Pets are another important topic in the episode. The key distinction is between information permitted during an application and the process for keeping a pet at the property.

In Victoria, renters wanting to keep a pet must request permission. A rental provider needs a good reason to refuse and must follow the VCAT process if seeking to refuse the request. Renters also have responsibilities to keep the property reasonably clean, avoid damage and prevent nuisance.

Owners cannot charge an additional pet bond. Damage claims must account for matters such as fair wear and tear and the condition of the affected item.

Have your manager follow the official pets in rental properties guidance. Clear records and a lawful process help both parties understand their responsibilities.

Rent reviews and landlord insurance need forward planning

Ben recommends starting rent review conversations early so owners have time to consider market evidence and any required notice.

In Victoria, renters must receive at least 90 days’ notice of a rent increase using the correct form. In most cases, increases cannot occur more than once every 12 months, and fixed-term agreements have additional conditions. Check the rent increase rules before acting.

Rising ownership costs do not automatically establish what rent a property can achieve. Review comparable homes and the applicable rules with your manager.

The episode also raises landlord insurance. Rather than assuming cover requires a particular lease arrangement, check your own policy wording or ask your insurer. Confirm what happens if a fixed-term agreement becomes periodic and whether you have any notification obligations.

Four features renters look for in a new investment property

Ben identifies four practical features that renters ask about. If you are still choosing your building inclusions, these are useful topics to discuss with a local property manager.

1. Efficient heating and cooling

Comfort matters, along with the cost of running the home. Consider equipment efficiency, coverage and suitability for the local climate, as well as compliance.

2. A usable backyard

A patch of grass is not necessarily an inviting outdoor space. Ben highlights demand for areas where renters can spend time with family.

Review landscaping, outdoor access and whether an alfresco or patio suits the property, target renters and budget.

3. Security doors and flyscreens

These can make everyday ventilation more comfortable and practical. Check the building specification carefully so you know what is included and where.

4. Solar panels

Ben says renters increasingly ask whether a property has solar. Consider system size, expected household use and installation costs with your builder or installer. Requirements vary by location and project, so confirm what applies to your build.

The discussion also covers larger cooking appliances, easy-clean flooring and upgraded bathroom finishes. These may improve appeal, but they do not guarantee higher rent. Ask a local manager which inclusions renters value before committing to upgrades.

Co-living and rooming houses need the right management experience

The episode also explores co-living, rooming houses and dual-living designs. These arrangements can involve different approval, operating and tenancy requirements from a conventional rental home.

Do not assume a standard property management service covers every model, or that a marketing label determines the legal classification.

Before committing to a design, confirm the proposed use, relevant approvals and management requirements. Speak with the relevant council, qualified advisers and a manager experienced in that property type.

Frequently Asked Questions

Should I involve a property manager before my investment home is finished?

An early conversation can help you assess local rental demand, review inclusions and plan the steps needed before advertising. It also gives you time to compare management services.

Does a brand-new investment property still need compliance checks?

Yes, new construction does not remove rental obligations. Confirm the checks, records and standards that apply in your state or territory before offering the property for rent.

Is the cheapest property manager the best option?

Compare the full fee schedule, communication, local experience and service scope. The lowest percentage alone does not tell you how well your property will be managed.

Will premium inclusions guarantee higher rent?

No. Ben says thoughtful upgrades can appeal to renters, but the result depends on local demand, competing homes and the cost of the upgrade.

Glossary of Terms

• Rental provider: The term used in Victorian tenancy law for a landlord.
• Property management fee: The agreed charge for managing a rental property, commonly calculated as a percentage of rent received.
• Disbursement: A payment of rental funds to the owner after agreed deductions.
• Fixed-term agreement: A rental agreement with a specified end date.
• Periodic agreement: An ongoing rental agreement without a fixed end date, often described as month to month.
• Minimum rental standards: Requirements a rental property must meet under the relevant jurisdiction’s rules.
• VCAT: The Victorian Civil and Administrative Tribunal, which deals with various disputes, including residential tenancy matters.

Key Takeaways

• Choose a property manager for their communication, local knowledge and service, as well as their fees.
• Compare management charges in dollars and confirm all additional costs.
• Budget for compliance, maintenance and potential upgrades alongside construction and finance costs.
• A new build still needs to meet rental requirements before being advertised.
• Use current state or territory rules for applications, pets and rent reviews.
• Prioritise practical features renters value and check local demand before upgrading.
• Get specialist advice for co-living, rooming house and dual-living proposals.

Watch or Listen to the Full Episode

Planning to build an investment property or rent out a home? Join Colin Bischof, Darren Brennan and Ben Pitt for the full discussion on choosing a property manager, understanding fees and preparing a rental property.

Watch or listen to Tenants, Pets, Fees & Compliance - What Landlords Need to Know

About the Home Building Hub Podcast: The Home Building Hub podcast, hosted by industry experts Colin Bischof and Darren Brennan, is Australia’s premier resource for new home buyers. With weekly episodes featuring special guests, the podcast provides objective, high-quality insights into the home building process - completely free and without sales pitches. From understanding financing options to navigating the complexities of building a new home, each episode is packed with actionable advice and tips. Explore more episodes at http://www.homebuildinghub.com.au and join our growing community of informed home buyers.

Disclaimer: This article was generated by AI based on a transcript of our podcast episode and may contain inaccuracies or omissions. Whilst we’re all about providing value to you, this article should not be considered as legal or financial advice. It contains general information only and is based on the content discussed during the podcast episode. This information is relevant to the episode’s release date and may not be applicable at the time of reading. Always seek independent professional advice tailored to your personal situation before making any legal or financial decisions.