Hi everyone
I am looking at purchasing my 5th investment propoerty. Currently the other 4 are being managed by real estate agents but I would like to have a go at managing the next one myself. I plan on using a rental agreement from the Newsagent.
My questions are:
– what paperwork do I need for accounting / audit purposes.
– rather than setting up an account for rent to be deposited, is cash still able to be used for rental payemnts i.e tenant pays me monthly in cash which I then deposit in my account – what sort of documentation would I need for this?
– I would like to keep all utility bills ( water/electricity.telephone) in my name and then email or fax the bills to the tenant to be paid. Is this OK or should I be ensuring the electricity and phone bills are under the tenants name?Would appreciate you help help
Thanks
Sandy (Sydney)
Hi Sandy
You will get a lot of the information you need from the tenancy agreement pack you buy at the Newsagents.
Then have a look at all the exact procedures you have to proceed through when you end up in the CTTT (Consumer, Trader & Tenancy Tribunal), due to problems with your tenant. Oh and by the way, enjoy all the maintence calls, e.g. "these a loose tile on the laundty floor"
In the end, I put the experience of doing it myself down as, one of life's learning curves
Cheers, Paul
Paul Dobson | Vendor Finance Institute
http://www.vendorfinanceinstitute.com.au
Email Me | Phone MeAn alternative way to finance your home.
Hi Sandy
Best of luck with it.
We manage a couple of our own in Canberra and have had no problems so far (touch wood).
Set-up an excel spreadsheet that captures all the expenses (interest repayments, rates, insurance, body corp, etc) and income (rent). Spend 5 minutes each month updating this spreadsheet – I’m happy to send you mine if you like (just shoot me an email).
The easiest method of collecting payment is giving the tenant your BSB and Account number – it’s more convenient for everyone (and easier to track).
I would have as little involvement in the utilities as possible – let the tenant set that up themselves.
I hope that helps.
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
I would be careful about getting the utliities in your name. If they don't pay the utility company will come after you, then you will have to chase them – extra hassle.
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
Terryw wrote:I would be careful about getting the utliities in your name. If they don't pay the utility company will come after you, then you will have to chase them – extra hassle.Agreed – that’s something you don’t want to worry about. I’d always be worried about the utilities bill being sent to the IP (with the account in your name) and the tenant throwing it out or not letting you know that it was due. It could end up in a nasty little default that you weren’t aware of.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Terryw wrote:I would be careful about getting the utlities in your name. If they don't pay the utility company will come after you, then you will have to chase them – extra hassle.That was my thought. Why would you want to do that? Sounds like a tax dodge to me. Asking for things to be paid in cash. What's the advantage except to hide something. Are you going to go and collect it each month?
what if you get a tenant that sits for months and you can't get them out. Not only are you losing rent you will be paying for their electricity and phone bills. They might have some overseas relatives to ring every night???And, No, you can't just turn the electricity off.
the only utilities in your name is the water. Recent changes in nsw means you can only get usage if water efficient taps are installed.
Payments in cash require receipts to be issued. Direct credit doesn’t need receipts.
You can download nsw form from the fair trading website.
You need to provide tenant info from the oft
hi,
i am also about to be renting out my property and managing it myself for the 1st time so trying to gather as much info as possible!!jamie i would love a copy of your spreadsheet, if you dont mind?? will send you an email.
does anyone know anything about including the water bill in their bills?? is this difficult/worth it??
You have 2 options, install water efficient devices & read the water meter @ the start of the lease then charge for usage or charge $x extra per week as part of the rent
You must be logged in to reply to this topic. If you don't have an account, you can register here.
