If you are looking to diversify your investment portfolio, a bricks-and-mortar investment can pay great dividends. Of course, it is all about location and if you choose the right property, you should enjoy a good return.
There is a lot of responsibility for a landlord and the best solution is to join forces with an agent for real estate in Collaroy that offers property management services.
Services include the following:
- Tenant screening
- Building maintenance
- Collecting rent
- Dealing with tenant issues
- Property security
- End of tenancy cleaning
The property management services are essential and tailored to suit your business; we recommend putting together a comprehensive business plan.
Why write a business plan?
Every venture needs some firm direction and when you sit down and create a comprehensive plan of action that details every aspect of the enterprise. One of the essential sections is a startup costing that tells you how much capital you will need to make this happen.
Don’t forget to include all of your expenses, including stamp duty, legal fees and removal costs, plus the cost of renovating the property. A typical business plan would extend to 15-20 pages and when you think the plan is complete, ask a business coach to take a look.
If you use a property management company, they would have a legal expert to help you with tenant issues. The laws for rental properties are complex and without legal counsel, you run the risk of failing to comply with legal protocols. Some tenants know the law very well and they can be difficult to deal with, which is why you need the assistance of a lawyer. Click here for the ultimate removal checklist.
Of course, when you set up a rental property investment, there will be tax to pay and in order to minimise taxation, talk to a local chartered accountant who can help you register the business and set up a bookkeeping routine for you to follow.
Keeping business records
Just like any other business, you need to record all transactions, both incoming and outgoing, then at the right time of year, you have to file your tax returns, which your accountant can do. It is important to keep daily records with any business and hiring a local bookkeeper is the best way forward.
If anyone needs legal advice, it would be the rental property business and when you hook up with a property management company, you have access to their legal hotline. There can be many instances when a lawyer might be required; tenants can be very fussy and some are always complaining to their landlord. Click here for information on setting up a business in Australia, which you will find useful.
It’s all about location
Choose one of the top Sydney suburbs and you won’t regret it; most investors acquire rundown properties at a bargain price, renovate and list the property on the rental market.