Starting a PM business to look after our own property

[sammmeee]

Hi,
Im a 1% owner of my husbands IP. If I started a PM business just to run and service the IP would this be ok for the ATO..obviously looking to build up the number of IP's the business would look after

I am a stay at home mum and earn under 6k a year whereas my hubby earns over 100k. So if he paid the "business" 10% management fee in which I would run the management of the IP would this be allowable. He can claim the management fees and I can claim the tools needed to look after the property/ depreciation / travel ect. I have the time and drive to do it?

In WA the prices are crazy to manage a property!!

Is this a silly idea?

 

[BV]

Is this a silly idea?

If you have a substancial portfolio it could be worthwhile.
At 10% and assuming you've got IPs getting you $100K in rent that's a saving of $10K.

I don't know if you need to complete a special course to start a PM business but considering that you can manage your properties as an owner I doubt it.


IMO its not a silly idea if you can stomach dealing with tenants. However, if you put direct debit agreements in place and filter them when they apply and select the ones you feel comfortable with, it could work.

 

[wylie]

I do this for hubby, pretty much the same financial position as you, and charge the same as a PM would do (7.5%).

I also actually DO all that a PM would do.

It has been said on here by some posters that as I am not qualified, I cannot do it, but our accountant is very conservative, and perhaps I am just doing "bookwork" instead of actual "property management".

All I know is that I do work for my money .

 

[sammmeee]

Thanks Wylie,

So do you have an ABN? If you dont mind could you tell me the steps you went through to set up your "bookwork".

 

[D.T.]

BV - I *think* she'd only have to do the course if the business was publicly operating / taking on other peoples properties which doesn't sound like the plan.

Sam - You'd need an ABN as it has to be quoted on the invoices you prepare for your "client".

 

[jaycee]

interesting..

although I can't "pay" myself for managing my own properties so out the window with that..

how 'substantial' a portfolio would it need to be, or at the end of the day is simply about the nubmer - 7.5% of rent collected..