Hey guys how is it going, i self manage my investment property’s and I have been asked by a friend if I could manage there property because they are moving inter sate I was just wondering if any one knows how I would go about it. Do I need to a real estate licence or need to do a property manager course or can i just get a contract drawn up and take it on and get a commission. We don’t want to do any thing illegal so if any one could help that would be great.
Thanks Cam
In WA you need a Triennial Certificate and a Management Agreement. That is pretty standard Australia wide (but they may be called something different).
Personally, I would say for a couple of thousand dollars commission it wouldn't be worth it. Legally or illegally.
A full real estate license is required unless you are working under someone else’s corporate license.
You only need to be licensed if you are handling trust money. If the tenant pays the rent direct to the owners bank account (which he / she may give you direct access to), and you just take phone calls / emails on behalf of the owner, and organise tradesmen, then I can't see why you would need to be licensed. It is no different to being the lawn mower or cleaner. If you hold money in Trust though (ie. operate a Trust Account) then a whole new world opens up, and you would want to be well educated and qualified.
Hi Cam
As you mentioned "and get a commission" I thought I'd show you the relevant bit of the relevant NSW Act, i.e. the Property, Stock and Business Agents Act.
"real estate agent means a person (whether or not the person carries on any other business) who, for reward (whether monetary or otherwise), carries on business as an auctioneer of land or as an agent: ….
(d) collecting rents payable in respect of any lease of land and otherwise providing property management services in respect of the leasing of any land, or …."Cheers, Paul
Paul Dobson | Vendor Finance Institute
http://www.vendorfinanceinstitute.com.au
Email Me | Phone MeAn alternative way to finance your home.
Thx Paul, I just didn’t have access to the PSBA for the quote.
Hi Camb,
Not sure how much commission your friend will be paying you, but I always think best leave things to the professionals.
They do it everyday for a living, and are up to date with the changes in the tenancy laws. They also have insurance to cover their work. With the going rate anywhere between 5% to 7%, I give all my rentals to my property manager.
They also handle all of the issues that tenants may have.The critical points are "collecting rent" and "carrying on business".
My wife and I own an investment property (although it is technically all mine legally for tax reasons). The tenant pays the money into my bank account. My wife however deals with any issues arising from the property (the tenant is known to us, so a special relationship). She is not a Property Manager, however she gets a reward from the proceeds of the property.
So long as the Lease does not mention Camb as being the Managing Agent, and the rent is paid direct to the owner, I can't see it being an issue.
The above said, I should add that I am a Property Manager by profession, so whilst not a legal expert I do have a vague idea what I am talking about. Also, if I was overseas, or had a more complicated investment property, I would call on a local professional. I am simply answering the question of could it be done, not recommending whether it should be done.
Property management by professional or amateur works just fine until grey areas arise, or a tenant pushes a boundary (bad pun, sorry), which inevitably happens.
Then the professional knows what to do to avoid a train wreck.
So I believe it's better left to professionals.
Doing it for a friends risks a friendship and the property.
Cheers
thecrest (former PM)thecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
as above, anyone can manage a property for themselves but when it is not your property, the government has stepped in to prevent unscrupulous operators ripping off owners or preying on tenants. Penalties do apply, regardless of whether or not you collect the rent, sign the lease etc.
For the pittance it costs the owner, they get a receipt & tax deduction. If you do it for cash or for nothing, there is no tax deduction & you are getting short-changed.
I agree with thecrest.
Not saying anything more on this thread, but sometimes does amaze me, what some people try to save on.There was one man I know, who tried saving money by painting the house himself.
No safety or scaffolding, fell down 2 storeys and has been an invalid ever since.
You must be logged in to reply to this topic. If you don't have an account, you can register here.
