In­vest in your in­vest­ment

Pilbara News - - Property - Hay­den Groves

Own­ing an in­vest­ment prop­erty is like run­ning a small busi­ness.

There are risks and re­wards, and it’s im­por­tant to main­tain good records for ad­min­is­tra­tive and tax­a­tion pur­poses.

One of the rea­sons prop­erty in­vest­ment is pop­u­lar is the in­vestor is, for the most part, re­spon­si­ble for the per­for­mance of their in­vest­ment.

The big­gest mis­take many in­vestors make is not keep­ing up with reg­u­lar main­te­nance. This is coun­ter­pro­duc­tive. Un­kempt prop­er­ties will not in­crease in value as much as oth­ers, your rental in­come may be lower, and ten­ants could be less likely to re­spect the prop­erty.

The best way in­vestors can min­imise on­go­ing ex­pen­di­ture is ini­tially to pur­chase low­er­main­te­nance prop­er­ties which are struc­turally sound.

Of course, even the best in­vest­ment prop­er­ties need oc­ca­sional main­te­nance.

Many of these costs are tax de­ductible.

Prop­erty own­ers dread the prospect of a ten­ant who dam­ages the prop­erty but this is rare.

One of the best ways to avoid this hap­pen­ing is to en­sure the prop­erty is in top con­di­tion.

Most ten­ants will keep a prop­erty in the con­di­tion they find it. REIWA rec­om­mends em­ploy­ing a prop­erty man­ager to pro­tect your as­set.

Apart from find­ing ten­ants, col­lect­ing rent and see­ing to the ad­min­is­tra­tion of your prop­erty, a pro­fes­sional prop­erty man­ager can ac­cess in­dus­try data­bases to see if a ten­ant has a his­tory of non-pay­ments or prop­erty dam­age.

Some 60 per cent of all rental prop­er­ties are man­aged pro­fes­sion­ally, mean­ing in­vestors who use this ser­vice can achieve a com­pet­i­tive ad­van­tage over those that are man­aged pri­vately.

Prop­erty man­age­ment fees are fully tax-de­ductible, which makes them even more at­trac­tive, par­tic­u­larly for those peo­ple who lead busy work and fam­ily lives.

Em­ploy­ing a prop­erty man­ager means you won’t have to deal with the day-to-day is­sues of find­ing the right ten­ants, ar­rang­ing the lease, col­lect­ing the rent, home in­spec­tions, re­spond­ing to main­te­nance re­quests, and com­ply­ing with the Res­i­den­tial Ten­an­cies Act.

In sum­mary, for those in­vest­ing in prop­erty, REIWA rec­om­mends pro­fes­sional prop­erty man­age­ment, along with start­ing a main­te­nance fund by reg­u­larly set­ting aside small amounts of money to meet oc­ca­sional needs.

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