Leasing out IP privately

[roy22Member@roy22Join Date: 2009Post Count: 37]

January 19, 2009 - 6:26 am

hey,

i have recently been living in my first home for the initial 6 months and would like to rent it out. I have been told that the real estate company takes around 5% to manage the property every month.

So, i decided against it and would like to rent it out privately. Was just wanting advice to see if there was any legal paperwork i would have to do for it to be considered and IP for tax purposes, or just an agreement with the tenants be ok.

I understand there is a big risk without a property manager, but im pretty sure i will know the tenants personally.

Thanks in advance for any advice.

[ducksterParticipant@ducksterJoin Date: 2004Post Count: 1,674]

January 19, 2009 - 9:35 am

Knowing the tenants makes it hard if they stop paying the rent and you have to evict them.
Property managers also handle dealing with the tenants tribunal when eviction is required.

[elkamMember@elkamJoin Date: 2006Post Count: 722]

January 19, 2009 - 11:40 am

Hello Roy

I don't know which state you are in.
If in Victoria here is some useful reading.
 
http://www.consumer.vic.gov.au/CA256EB5000644CE/page/Renting-Landlords?OpenDocument&1=910-Renting~&2=20-Landlords~&3=~  

Cheers
Elka

 

[IP FreelyMember@ip-freelyJoin Date: 2008Post Count: 353]

January 19, 2009 - 12:20 pm

All states will require that you enter into a standard form lease (available from newsagents or dept of fair trading) and to lodge the security bond with the rental bond board.

see: http://www.fairtrading.nsw.gov.au (then go to landlord section)

[maree_bradrossMember@maree_bradrossJoin Date: 2007Post Count: 401]

January 22, 2009 - 5:07 am

sigh – I have to change my tune and eat humble pie

I rent out our IP privately and it was great whilst the tenant paid on the due date but it has all gone pear shaped! Partly my fault as I have been so busy working 1 FT & 2 PT jobs that I failed to maintain proper records for this FY – now it is very messy and painful and she is all up 3 months behind – even though she gets rent assistance from the goverment and also received the stimulus package at xmas time which seems to have financed a very large trampoline in the backyard (no wonder I felt we weren't getting anywhere financially!!)

Anyway – my changed advice is go through a Property Manager – a good one is worth their weight in gold!

[perpetratorMember@perpetratorJoin Date: 2007Post Count: 48]

January 23, 2009 - 4:33 am

maree_bradross wrote:

sigh – I have to change my tune and eat humble pie

Anyway – my changed advice is go through a Property Manager – a good one is worth their weight in gold!

I have had to eat humble pie on numerous ocassions over the years and although the taste is not so sweet it is in fact extremely good for you

Save yourself the headache and employ the services of a good PM, its tax deductable remember. Mine charges a reasonable rate and does an outstanding job, I would never go back to self managing again.

[maree_bradrossMember@maree_bradrossJoin Date: 2007Post Count: 401]

January 23, 2009 - 7:51 am

thanks for the kind words perpertrator. The upside is we have managed to survive for 3 months without income from the IP (over xmas period), so feeling really confident about taking the plunge and buying another  property now – we have unintentially proved we can do it

[roy22Member@roy22Join Date: 2009Post Count: 37]

January 24, 2009 - 12:19 am

thanks very much for all your help guys. i think i will go with a pm soon.
thanks again