If you’re thinking about renting out your current home, or investing in a property as another source of income, you’ll need to know all about property management. Here’s the lowdown of what’s involved.
Consider all costsWhen purchasing an investment property, there are ongoing costs that need to be taken into consideration. As a landlord you are responsible for payment of fees comprising:
- Council rates
- Water rates
- Owners corp fees (if applicable)
- Insurance/s e.g. Landlord
- Repairs and maintenance
While many items in your property will be covered under warranty, general wear and tear such as paintwork and carpet should be considered. Regular servicing of items like air conditioners and heaters should be taken into account. 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 that 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. Ensure you have a system in place to provide the most suitably qualified tenant, such as identification, employment history and rental history.
Enlisting the help of an experienced property manager will assist in ensuring a smooth tenancy, taking all the hassle and paperwork out of your hands. You’ll pay a fee that is a percentage of the rent collected, but property management fees may be tax deductable.
For further information about property management feel free to contact us to speak to a member of our Property Management team.