Rental property is one of the best investments for early retirement or as an added immediate income. Many business owners have also found it helpful to buy larger than their current requirements and earn letting fees by renting out the balance.
However, owning a rental property is more than just receiving rental income every month. Knowing this, many investors are still wary of paying a professional property manager. Have you considered that those letting fees could be worth it with the right manager and could increase your revenue?
A good property manager is worth their weight in gold. Picture: Getty
Let’s be straightforward: only a good property manager will add value to your investments. A disinterested company that just collects the rent on your behalf and deducts their fee will simply not do. However, a property manager who takes a steadfast interest in you, your property, and the renters will create a symbiotic relationship between all the parties and ensure your investment grows.
The list of tasks a property manager will provide an owner includes the following:
A property manager doesn’t advise on the investment value of rental properties per se but manages it on your behalf, using their experience and knowledge for your benefit. Good property management is about maximising the investment while minimising the risk.
Property managers also organise repairs and maintenance tradespeople, in negotiation with the landlord. Picture: Getty
Documented property management through regular reports is critical for tax purposes. In conjunction with your accountant, the property manager enables you to deduct improvements as depreciation from current income tax or future capital gains tax. They can only do so if there are solid expenditure records throughout the lifetime of ownership.
The tax law arena is constantly changing, making it almost a full-time occupation to keep track of legal deductions that will reap monetary benefits in the long run. Ray White Drysdale will assist you with generating and submitting approved reports by an accredited specialist to the ATO. We make sure your investment property remains an asset throughout its lifetime.
As a bonus, the real estate letting fee is also tax deductible.
There are three general levels of property management services: a traditional management and letting fee, an all-inclusive management fee and a flat service fee. Each of these gives investors various add-on benefits concerning the management of their properties. Understanding what you will receive when engaging a property manager for a specific letting fee is important.
Ray White Drysdale leverages over 120 years of market insight and the collective strength of 700 offices to provide you with a bespoke management package for your investment property. We ensure your property doesn’t sit vacant for long, advise about potential renovations and uphold your legal obligations. We manage the property for the entire tenancy life cycle in addition to our usual administrative tasks.
We know the Drysdale rental market inside out, so we can determine the right rental asking price based on location and the property’s condition. We grasp what the market wants, so if you’re considering renovations to generate a higher rental profit, we’ll advise on the best return on investment for your residential property.
Our commitment to you always exceeds our management fees for your rental property.
Relieve yourself of the burden of vetting renters, collecting the monthly rent, contracting reliable tradespersons for repairs and renovations, and navigating the minefield of tax obligations by engaging a reputable rental property manager.
Does your asset serve to provide immediate rental income or as an early retirement fund? Ray White Drysdale acts on your behalf, allowing you to sit back and reap the benefits of a soundly administrated investment. Call us to talk about the numbers on your property and how our letting fees will add to its value.