If you’re thinking about renting out your current home, or investing in a property, you’ll need to know all about property management. Here’s some basic information about what’s involved.
Consider all costs.
When purchasing an investment property, there are a number of ongoing costs that need to be taken into consideration. For example, as a landlord you are responsible for payments including:
- Advertising for tenants
- Council rates
- Water rates
- Owners corporation/strata levy fees (if applicable)
- Insurances e.g. Landlord, Building
- Repairs and maintenance
- Tax and accounting
While many items in your property will be covered under warranty, general wear and tear such as paintwork and carpet needs to be considered. In addition, regular servicing of items like air conditioners and heaters should be also taken into account.
Here you’ll need to be careful as older properties can drain your funds with items breaking down and requiring either repair or replacement.
A well-kept rental property will always attract a better quality tenant who is willing to pay a premium on rent.
While most landlords have building insurance, a landlord protection policy is often overlooked. There are specialist policies designed for landlords of rental properties which will cover you from malicious or accidental damage caused by tenants, theft by tenants, loss of rent, broken leases, denial of access or tenant hardship and legal liability.
Securing the right tenant is the key to a trouble free tenancy. Here you’ll need to ensure you have a system in place to provide the most suitably qualified tenant by taking into account things such as credit checks, employment history and rental history etc.
Tax, payments & paperwork.
Although owning an investment property can certainly create wealth, there is also a lot of paperwork, tax and accounting involved.
Consider using a professional property management service.
Enlisting the help of an experienced, professional property manager can assist you in so many ways by ensuring a smooth tenancy, taking all the hassle and paperwork out of your hands and proactively managing all aspects of your investment on your behalf.
You’ll pay a small fee that is a percentage of the rent collected, but property management fees are generally tax deductible in Australia.
Frasers Property Management offers services in New South Wales, Victoria and Western Australia and we are wholly committed to making your investment a success.
We pride ourselves on personalised service, specialist product knowledge and a commitment to the successful, long term development of our residential communities.
For more information you are welcome to contact us or simply call 13 10 25 to speak to a member of Frasers Property Management team.