Hi all,
Just two quick questions to anyone who is experienced in renting out your PPOR and not worrying about an estate agent to do the work.
1. Do you need specific documentations to sign with the tennants or can you make your own?
2. If I decide to go with the agent, are the fees %100 tax deductable.Any advice would help as I am a just beginning my portfolio with the second property in 8 months settling in Feb.
Thanks in advance. Cheers
We rent out our PPoR at the moment.
We use an agent, the fees are tax deductible at your marginal tax rate.
Money well spent, unless you are living closeby and have loads of time to deal with all the issues.
Make sure you take out Landlord's Insurance as well, and $20 mill public liability.Hi CIS,
I also recommend using a property manager to manage the property. As Marc said, it is money well spent. As you expand your portfolio, you will find it hard to manage all the properties because they sometimes require lot of time.
You might want to read this post as well….some interesting reading
https://www.propertyinvesting.com/forums/property-investing/help-needed/4323077CIS – a standard residential lease pack will set you back about $25 from a newsagency – these are legally compliant in all respects. Who would you otherwise have prepare a 'legal document'? Even a lawyer or agent will use the lease pack.
You certainly need a proper contract to rent your property out. I think you should be able to buy standard rental agreements online.
You could also use an agent to find a tenant, set it all up, and then manage it yourself
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
What sort of fees do Agents/Property Managers usually charge, I've heard its around 8-9% for full management.
What about doing what Terry suggests, get the agent to find a tennant and set the thing up, what would the charges be for this?Thanks
9ball
Hi 9ball,
Property Managers generally charge 7-8% plus GST. And remember, this is a deductible expense for tax purpose.
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