In this podcast episode, Rajan and I dive into the financial management of a large rental property with multiple bedrooms and bathrooms. If you’re renting out each room, you could expect a substantial annual income. After accounting for various expenses, such as utilities, cleaning, and property management, you’d see a considerable net income, although this doesn’t yet include mortgage payments.
We also explore how property management fees affect your overall profitability. These fees can vary significantly, often ranging between 10% and 25% of your total income. For instance, if the management fee is on the higher end, it could substantially lower your net income. This highlights the importance of negotiating property management fees carefully; even a modest reduction can make a big difference to your returns. Effectively managing these costs is essential to maintaining the profitability of your rental property.
https://www.amazon.com.au/dp/B0CRF48GGR
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Episode Highlights:
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00:00 Welcome to Help Me Buy Property Podcast
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02:57 Nine Bedroom, Nine Bathroom Visibility
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04:48 Typical Range For Property Management Fees
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10:35 Age and SMSF Investment Returns
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18:36 Challenges with property management of rooming houses
