A property I’m looking at has a problem in that it has been tenantless for a while. A possible solution I’ve come up with is to include some of the utilities in the rent, (obviously after doing my sums). I can see how this might lead to a whole new problem of people abusing the resources, but I have seen this done before and was wondering whether anyone had had any success doing this or something similar, or just any thoughts on the subject.
Cheers.Hi Chris,
Just a slightly different thought…
Instead of paying any utilities, why not try offering the first week free. I have never done this, but have seen it suggested before and think it would be a big incentive, maybe just to help someone decide to rent your house over a similar one.
Is there anything else you can do to spruce it up a bit, or is there a problem you cannot overcome, position, bad condition etc.
Regards Wylie.
Hi Wylie,
the problem is specifically related to the utilities and dividing up the costs of these between different units/rooms within the one structure and therefore one reading.
Thanks for the feedback anyhow.
Cheers.
Chris.If included you could claim them as a tax deductions, whereas tenants couldn’t if paid themselves. Therefore if your paying $100 it may only cost you $80 after tax.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Thanks for your thoughts Terry.
Cheers.If the problem of “tennantless for awhile” is due to utilities charges then I would think that every user needs to pay for their usage. Have u investiagted the cost of separate meters? Not sure if we are talking elec, gas or water, all’ or a combination. Perhaps u could talk to local property managers.
hrm
Think this through logically.
Why has it been tenantless? Ask a PM to take a look and they will very quickly tell you why.
If it is location then I would suggest you reconsider the purchase.
Maybe it is price? $10 pw less might see it tenanted?
Perhaps it is the condition? Some $ thrown at it might solve it?
It is great to think of things outside the square to solve problems but sometimes we need to get back to basics.
All the best with the property.
Cheers,
Simon Macks
Finance Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
If you are talking residential – and I think you are – then when prospective tenants even get a whiff of this proposal they’ll jump all over it.
However, unfortunately for you as a ressy LL, they shall also want absolutely rock bottom rent and you’ll have to fork out all of the outgoings and maintenance costs.
Include utilities in the rent – forget it – if you try and squeeze up the rent a whisker to cover the costs, the tenants will run for the hills.
As long as money in your pocket as LL is the lowest priority, this may have merit. However, most LL’s have this objective somewhere up the top of the priority list.
Cheers,
Dazzling
“No point having a cake if you can’t eat it.”
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