Hi All,
Sorry if this has already been asked but Landlords are only required to pay for Council Rates, Body Corp and Borp. Insurance only correct?
Assuming we're leasing out a strata property
Thanks,
KenYou have to pay water rates, but can pass excess use to tenants. Body Corporates pay for building insurance, bought as a group for the whole property. Beware the sinking fund, its a "mini-bank" for the Body Corp. If some major work needs doing, they can demand all owners to put in $x thousand. It would be good to attend the body corp meetings, to get to know the system (once you've bought).
My choice would always be, to purchase a basic 3 bed house rather than a strata titled unit. Saves the fees, gives you more choice . And probably goes up in value more than units/townhouses.
You will have to pay 7-10% commission to agent managing your property as well (unless you manage it yourself). With a new lease, the agent typically takes the first week's rent as a letting fee. (Limit of once a year.)Plenty of expenses, but talk to your accountant and make sure you know what to expect.
Quickchick.
Water rates may be included in the BC charges also, depends on your State and the metering setup (per unit or per complex). With the one unit we hold (VIC) the BC pays all water charges. The only other item may be landlords insurance if you go that way to protect contents and loss of rent.
I own one in QLD and the tenants pay the water bills (new state rule that came in roughly April 08).
hmmm didn't like the thought of the sinking fund – Will have to check with my Body Corporate about that!
expenses on IP like management, interest, etc are deductable too as a loss.
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