When budgeting for the costs of holding a rental property, most investors factor in the regular, repeatable expenses such as council rates, water service charges, building and landlord insurance, property management fees and strata fees (where applicable).
From time to time there are additional expenses every investor is likely to incur - the trick is that the timing and extent of these expenses tends to be unpredictable. Due to their unpredictability, they can be more difficult to budget for and are sometimes neglected completely.
Following is not an exhaustive list by any means, however should help as a reminder to new and seasoned investors alike of the importance to allow for a savings buffer to ensure any untimely surprise expenses are little more than an inconvenience.
When choosing a property manager, it can feel like everyone is offering much the same thing. The fees and charges between different options can make it hard to compare apples with apples.
Many investors resort to creating a spreadsheet, listing all the real estate agents they can find and recording the management fee, lease preparation fee, monthly admin fees, advertising fees, etc. for each. Some even work out the annual cost of using each agency, and whoever comes in cheapest "wins".
If this sounds even remotely like you, read on. In this article we cover the 3 criteria most people use to choose a property manager, and why these criteria are flawed.
There are many advantages of consolidating your investment property portfolio to be managed by a single property management company. The benefits range from operational aspects which make life easier for you as an investor, to being able to maximise your return on investment through having visibility of your investment properties as a whole.
The above image was taken at an investment property we manage, when a burst storm water pipe caused part of the home to sink requiring urgent and very significant repairs!
"Should I manage my own investment property?". This is a common question asked by prospective landlords and those new to property investment. You know your property better than anyone else, and it may seem that once your property is ready to be rented out you could save on cost and maximise your return by managing the property yourself.
Let's look at this in detail. The starting point is to ensure there is a clear understanding of what is required in managing a rental property. As we'll see, there is a lot more to it than listing a rental on Facebook and Gumtree and collecting the rent!
It can feel like a never-ending challenge to save for a house deposit while renting. The good news is that with some planning, follow-through and time, it can happen.
Many renters find that the hardest part is knowing where to start. After all, there are countless experts, blogs, and articles in the media describing ways of saving more, spending less, and tracking your progress. It's not that renters are short of ideas. The challenge is choosing where to start in a way that makes a real difference that you can see quickly.
With this in mind, here is our shortlist of recommendations most relevant for renters wishing to save for a home deposit.
Carnelian Property Management Newcastle NSW
We are a family-owned and run Charlestown real estate agent offering expert property management across Newcastle and Lake Macquarie.