Renting

Property represents a very secure and sound long term form of wealth creation. As such, Australians are increasingly turning to property investment to secure their future. A well-managed investment can offer many advantages, including income and capital growth. Many investors may be able to use their investment to reduce the tax payable on their assessable income. Property is also a good option as part of an investment portfolio, particularly for people who do not need immediate access to their money and wish to protect themselves against inflation over the long term. It is important to be aware however, of the responsibilities of managing your property investment and assuring proper care. As considerable money is at stake, you need to take the time to get good advice before you act.

What can a First National Real Estate Property Manager do for you?

First National Real Estate offices offer a complete property management service for property investors. As Australasia’s largest and most successful real estate network of over 570 offices, the marketing services, systems and professional development are at the leading edge of the industry. First National Property Managers are well known for attention to detail. For the care of your valuable asset First National Property Managers prepare a written inspection report at the commencement of each tenancy and ensure a rental bond is lodged. An inspection of the property when a tenant vacates is a standard procedure within First National Real Estate and bonds will only be released if the condition is satisfactory. Inspections are conducted during the tenancy and important repairs and maintenance will be arranged, with your approval. Financial transactions are conducted with efficiency and receipts issued for all monies received on your behalf. You are accounted to regularly and monies are paid by cheque or deposited in an institution of your choice. Your First National Real Estate Property Manager has local experience and establishes the rental value by comparing your property with similar properties currently let. By maintaining your asset in good repair and ensuring it is well presented, you will maximise rent, reduce vacancy and attract a high standard of tenant. Vacant properties cost you money and are a security risk. First National Real Estate offers expertise in property investment and can assist in building your portfolio as a secure means of investment for your future. First National Property Management Services cover Residential, Commercial and Industrial property. With offices throughout Australasia and associated links with overseas networks, First National Real Estate can offer services anywhere and attract tenants from far and wide Primarily, your property management services will include: Establishment of an appropriate rent Organisation of advertising for the property for rent Showing prospective tenants through the property Receipt of applications and screening of appropriate tenants Optional checking with Landlord on screening new tenants Completion of all relevant documents requires under the Residential Tenancies Act Receipt of rent monies Follow up on any arrears in rental payments Organisation of repairs / maintenance Provide the landlord with regular payments and statements Payment of accounts Conduct initial, final and routine inspections of property Organisation of and representation at tribunal hearings Bond collection and the first month’s rent in advance prior to tenant moving into the property Lodgement of Bond with the appropriate body Personal service from trained and local property management team

Terms relating to property investment and management

Lease/ tenancy agreement An agreement for possession, not ownership, of a property for a set period. Lessee/tenant One who leases/rents a property from a lessor owner. Tenancy Agreement document Document that sets out details of the property to be rented and the terms and conditions agreed to between landlord and the tenant. Landlord The owner of property being rented. Negative Gearing Where the costs associated with your property investment exceed the income received over the tax year. This loss can be used to offset other income in that year’s tax return. Net Yield This is the income on your property less certain expenses such as rates, insurance, maintenance and body corporate levies. Depreciation This is a non-cash allowance that you may be able to claim on your tax which reflects the limited life of an asset. Capital Gains Tax This is the tax based on the difference between the purchase and selling price, less inflation, applied upon the sale of an investment property.