Hi, I am about to rent out my house for the first time ever and move out i/state to rent for awhile before considering purchasing interstate. I was wondering if anyone knows the process involved with renting a house out? Also, how does it work with tax? We predict there to be about $70 makeup per week that we will need to contribute to cover our existing mortgage. What are the approx costs with renting a place out? fees? what services does the RE agent usually do and can anyone provide suggestions of good RE agents in Adelaide? ANy stories? Thanks for your help
We rent out our PPoR currently.
It is manged by a local agent, they charge 7% and have done a good job so far. They do a condition report onece per year, the lease is yearly, but you may decide to make it a 6 monthly lease. This is better for making more regular rent increases.
Our statements arrive via email, and the rent is directly deposited into our bank account.
They pay any bills for us, other than the insurance, and deduct them from the rent, and send the bills together with the email statements, as well as post us the hard copies.
Make sure you take out LANDLORD'S INSURANCE, this should also include public liability, but if not, take out that as well – $20 mill.
If you are going to do this for a long period, you can rent out the property for up to 6 years before you become liable for cap gains tax should you ever sell.
Also, look at getting a Depreciation Schedule prepared by a Quantity Surveyor for the accountant for helping with the tax returns. It can be worth a considerable amount of money your way.
You must be logged in to reply to this topic. If you don't have an account, you can register here.
