If you've just bought your very first investment property then our hats are off to you! You're now on your way to building the passive income you've dreamed of.
Buying real estate on the Gold Coast is only the first step in achieving your property investment dreams though. What's next in your rental process?
1. Find a great property manager
For your first time owning a rental property, it's vital you connect with a professional property manager to ensure you don't make any errors that might leave you in legal disputes or out of pocket.
A Ray White Surfers Paradise property manager is your best friend as a budding landlord. We can take on whichever responsibilities you need assistance with – from simply marketing your property and locating tenants to connecting with tradespeople for low-cost repairs and conducting regular inspections. Working with a property manager ensures that tasks aren't neglected due to your busy work schedule, and everything is handled with comprehensive legal and market knowledge.
There are a great number more steps after this one which can easily be skipped by working with a property manager such as:
- Determining fair rental rates.
- Marketing your property.
- Screening tenants.
- Understanding how to collect bond and rent.
That said, there are still things you need to stay across even with a property manager on your side.
2. Prepare your property for tenants
It's not reasonable to expect tenants to feel they need to look after your property if you haven't likewise committed to presenting a comfortable, dry and safe home for them.
When you buy any property, you should ensure the home has been adequately cleaned before settlement day. This will help you spend less time preparing before putting your property on the rental market. However, commercial cleaning isn't required by law so you'll need to ensure you've included sufficient cleaning in the conditions of your sale and purchase agreement. If possible, insist the seller book a commercial cleaning for as soon as all furniture has been removed from the home.
Further to cleanliness, you need to be sure your property is reasonably secure (all windows can be closed, all doors have locks) and the home is fitted with functional smoke alarms.
3. Understand your tax implications
Your property manager can help you with this, however it's vital you at least understand your own tax implications.
When owning a rental property, there's a range of deductions you will be able to claim but you'll also be subject to capital gains tax (CGT) when selling or otherwise disposing of the property. Consider the consequences of keeping an empty rental property as well – you may not be able to claim deductions if your property is not generating income.
See the Australian Taxation Office's website for further information about tax implications.
For everything else about your rental property, you can rely on your Ray White Surfers Paradise property manager. Get in touch to start a relationship today!