Many Australians are not prepared to rely on their super to give them a secure retirement, what with rising costs and high inflation, and who could blame them? Many private investors look to property as a way of generating adequate wealth to see them into their retirement, and in this short article, we take a look at property investment in the rental sector.
Professional Advice
Whether you are looking to acquire a single rental property or a series of houses, you should contact a buyers agent, a specialist who can source the right property and facilitate the acquisition. This is especially important if you have limited experience in buying real estate, and the buyers agent can handle everything on your behalf.
Forge a Connection with a Local Builder
The best way to maximise returns is to buy a rundown property and have a local builder carry out remedial work to bring it up to standard. Aside from that, the builder can carry out any maintenance that may be required during a tenancy or at the end of a tenancy. Most rental property investors have a working relationship with a trusted local builder, which we regard as an essential partnership for any rental property project.
Property Management Company
While there are small investors who manage their own rental property, most enlist the services of a local property management company.
Such a company would offer the following services:
- Sourcing & screening tenants
- Drafting tenancy contracts
- Collecting rent on your behalf
- Property upkeep
- Property security
- Offering legal advice
- End of tenancy transactions
- Legal representation
As you develop your business and acquire more properties, joining forces with an established property management company is a natural progression, as they can handle every aspect of the business, leaving you free to pursue other interests.
Bookkeeping & Accounting
As with any business, you must keep records of all business transactions and file your tax returns within the given timeline. A local accountant can handle this on your behalf, and if your business data is on the cloud, issue them with a username and password, and they can access the data that they need to do their job. Click here for information on student rentals, which is one market you could explore.
Sourcing Tenants
This can be a frustrating aspect of a rental property business, and if you decide to handle it yourself, it can be time-consuming and stressful. You have to draft your own tenancy agreements, which would require legal assistance; we recommend using a property management company, as they have the know-how and experience to handle this aspect of the business.
Legal Advice
There will be times when you need legal advice; a tenant might, for example, complain about the property, and you need to respond. It is not recommended that you respond without first receiving expert legal advice, which you can get from either a local lawyer or an established property management company.
