Should you manage the property yourself or get an agent to do it?
You don’t need an agent when times are good, it is easy to just watch the rent roll in.
But what about when things aren’t good? What if the tenant is falling behind in payments or they damage the property and need to be evicted? What if you need to find new tenants? Every week you don’t have them costs you big time.
Agents are experienced with managing all these less enjoyable aspects of owning property. It is usually a good idea to outsource the management to an agent.
My agent has offered to pay my bills and/or loan repayments for me
Don’t do it.
As above, it all works nicely when things are good. What happens when the tenant falls behind on the rent and the agent doesn’t pay your bills or make the payments because of this. This first you hear of this is debt collectors ringing you for late payments.
You need to be in control of your payments as no one else is accountable.
In our experience, the ideal scenario is for rent to be paid into an offset account/savings account/line of credit. From there, all your loan and bill payments can be taken. Leave some extra funds in the account to cover any shortfalls. Your credit rating is far too important to take risks.
How do you do your tax?
Use a professional accountant. Not just someone who will do your tax return but someone who will give advise and work with you on strategy.
Doing the wrong thing with capital gains or depreciation can cost you thousands.