All Topics / Help Needed! / managing rentals

Viewing 6 posts - 1 through 6 (of 6 total)
  • Profile photo of sofcarlmarksofcarlmark
    Member
    @sofcarlmark
    Join Date: 2011
    Post Count: 2
    March 11, 2011 - 5:35 am

    hi everyone,

    i am just about to undergo managing my rental property myself and my parents and sister have asked me to manage theirs too.
    Can anyone give me any advice about managing properties that aren't their own??
    do i need an ABN or anything? will i have to declare the other rent as income? will there be problems for me at tax time?
    do you think this is worth doing?? does anyone know of a good course to do to learn about property managing?
    i am nervous undergoing this endeavor and would appreciate any comments/advice

    thanks
    sofia

    Profile photo of DerekDerek
    Member
    @derek
    Join Date: 2004
    Post Count: 3,544
    March 11, 2011 - 7:09 am

    Know the legislation as it applies to your state better than the back of your hand.

    It is highly likely you may need a license if you are being paid for your endeavours.

    Reading your post – it would seems as you have a lot of learning to do. Are you sure this (managing another person's property) is what you really want to do?

    Profile photo of ALF1ALF1
    Participant
    @alf1
    Join Date: 2011
    Post Count: 237
    March 11, 2011 - 7:22 am

    Hi Sofia.
    Why do you want to manage all these properties?
    Are you and your family aware of the relevant licenses which may be applicable in your state?
    Do understand how the Residential Tenancies Tribunal in your state functions?
    How often can you do inspections?
    How far behind in rent can the tenant be before you can commence recovery and evictionproceedings?
    How much notice in writing must you give the tenant before you can enter the property to effect emergency repairs? What are deemed emergency repairs under your state's tenancy legislation and Consumer Affairs code?
    I could ask you alot more questions but suffice to say you absolutely must understand your rights as a landlord, managing agent as well as the rights of the tenant. Are you and your family aware that should you pay to have a property manager take care of your properties that these fees are fully tax deductible as an expense against your investment property?
    Please do yourself a favor and investigate the cost and benefit of hiring a certified and legally capable property manager before taking this on yourself.
    I hope this hasn't seemed to harsh and has been of benefit to you.
    Kind regards,

    Profile photo of IP FreelyIP Freely
    Member
    @ip-freely
    Join Date: 2008
    Post Count: 353
    March 11, 2011 - 7:57 am

    Obviously, be aware of the risks. As you do not hold a licence, you are unable to charge for your services & still be held accountable for any shortcomings. How do you propose to collect the rent? Are you aware that rent must go into a statutory trust fund which can only be opened & operated by a licenced agent. Do you carry professional indemnity insurance?

    Profile photo of DetroitDan9DetroitDan9
    Member
    @detroitdan9
    Join Date: 2011
    Post Count: 63
    March 11, 2011 - 6:03 pm

    Sofia,

    Managing other peoples properties can be a lot of work if you are not prepared. If you really want to get into it I recommend using software to assist. TenantPro7 is a great program to use, and I believe you can manage up to 5 properties for free in it.

    Here are a few pros and cons to managing others properties:

    Pros
    +Small boost to your cash flow (usually 10% of rent is management fee)
    +Gain additional experience working with properties and tenants
    +If you have great tenants already in place – you have very limited work to do

    Cons
    -You are getting calls for any small issues within the property (maintenance)
    -If the tenant doesn’t pay you have to deal with them as well as an upset family member

    One piece of advice: if you are finding a new tenant, set the tone of your relationship early, do not let them bend or be late on any deadlines you set. It is like the first day of being a teacher, if you show a crack in the armor, the tenant will take advantage!

    Good luck!

    -Dan

    Profile photo of DafnnyDafnny
    Member
    @dafnny
    Join Date: 2011
    Post Count: 18
    March 23, 2011 - 7:15 am

    Hello Sofia

    It is important that you know the laws involved and now how to manage upcoming problems.

    You dont need a licence to manage your own property however if you are going to be looking after other peoples properties you have to think about how you are going to collect rent, inspections, ingoing and exsit reports, repairs, and other small areas which are every day activities. 
      setting up a trust account also requires you to have a licence.. you need to have agreements in place to give allow you to manage the properties.

    Please keep in mind that the laws have changed and it is very important you now what you are doing to provent problems.

    <moderator: delete advertising> 

    warm regards,
    Dafnny

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