| A few thoughts on purchasing and managing investment property…
Property represents a very secure, sound, long term form of wealth creation. As such, many people are turning increasingly to property investment to secure their future. Of course the investment return is absolutely dependent on having the property well managed.
A well managed investment will offer strong returns and capital growth. In addition investors may also be able to use their investment to reduce tax payable on their assessable income. This is referred to as Negative Gearing. Property is also a good option as part of an investment portfolio, particularly with people who do not need immediate access to their money and wish to protect themselves against inflation over the long term. For specific advice on the investment aspects of rental property, we encourage you to seek the services of a Financial Planner or your Accountant.
Whatever your reason for investing, It is important, to be aware of the responsibilities of managing your property investment. There is a myriad of aspects to the management including:
- Compliance with tenancy and other legislation
- Avoidance of claims for discrimination
- Ensuring the privacy of tenants' personal information
- Ensuring the property meets the required standards for safety and security
- Selecting appropriate tenants
- Monitoring and managing rental payments and rental arrears should they arise
- Regular internal inspections and reporting on the tenancy and condition of the property
- Managing maintenance of the property to ensure that it is kept in good condition and any risk of litigation from tenant injuries is minimised
- Provding the tenants with 'quiet enjoyment' of the property
- Managing tenancy changeovers to minimise loss and maximise rental returns, including tenancy finalisation and bond refunds or claims.
- Regularly reviewing rental income and managing rent increases as necessary
A well managed property can mean the difference between a poorly performing and an extremely well performing property both in terms of rental return and capital growth.
Click here to see the feedback from some of our landlords who value good management. |
