A General blog by Paul Bennion.
In one of my previous blogs I highlighted the top 10 mistakes made by property investors and noted that one key mistake was not using the services of a property management company.
As a tax depreciation company, DEPPRO works with many property management companies throughout Australia, assisting their clients to achieve the maximum benefits allowable through depreciation and thereby boosting their cash flow. Some of the most highly reputable companies in Australia that offer property management services are featured on our website such as Professionals.
Property investors who use professional services such as those relating to property management and tax depreciation generally can quickly build a very successful property portfolio.
The real estate market is becoming more complex and investors need to access these professional services to ensure they fully comply with legal requirements.
Unfortunately, far too many investors try to do it themselves by managing their own property or claiming tax depreciation benefits that don’t comply with the ATO rulings.
To highlight the complexity of the property market, I have highlighted 10 key reasons why a property investor should use a property management company.
- Do you possess a thorough understanding and knowledge of The Residential Tenancies Act in order to maintain a fair and professional relationship with your tenant? The tenant may sue you if you conduct yourself outside the Residential Tenancies Act!
- Do you realise that as a private lessor you do not have access to tenancy default databases? Some of the good agencies will have also bought a national tenancy database which is crucial with the number of tenants moving to Western Australia for work. Therefore, tenants listed on these databases are forced to rent privately?
- Have you lodged your tenants’ Bond money in accordance with the Residential Tenancies Act requirements and within the required timeframe? If not, you may be liable for a heavy penalty.
- Do you have the time to conduct detailed property inspection reports to ensure that the investment property is well maintained?
- Do you know the right procedure when dealing with rental payment arrears? Have the correct notices been issued with the required excess days in the calculation of notice period? If not, your advices may be totally invalid and you will have to start the procedure all over.
- Do you have a concise knowledge of The Residential Tenancies Act to effectively represent in Court? The procedure must be precise. If you are ill prepared with non-compliant documentation, invalid notice periods or lack of evidence, justice may not fall on your side. Minor mistakes may cost you dearly!
- Could you successfully terminate your tenancy and recover possession of your property without the need to go to Court? Do you know the correct procedure, the right notices to issue and the correct time frames? Is your negotiation skill and knowledge of the Act sufficient to mediate a successful resolution and outcome?
- Could you complete a valid Property Condition Report with enough detail to stand up in the Magistrates Court if necessary? If it is not a precise record then it may have little or no value if needed for evidence.
- Do you know the correct procedure when the tenant has absconded and abandoned goods remain at the property? The Residential Tenancies Act has a range of procedures that must be followed when goods are left at the property.
- The services of a professional property management company are tax deductible. If you have several investment properties, this service is particularly invaluable.