Property manager DIY
Question from Reema updated on 5th July 2012:
My husband and I own a rental property of which I am acting as a unofficial property manager. I take care of all the administration, bill payments, rent monitoring and tenant issues. I've also taken the same responsibilities for my mother in law's rented property. Can I claim property management fees? How do I go about this?
Our expert Mark Withers responded:
Yes, you could charge the partnership a management fee. It should be at market rate. Say 7% or 8% of the rent collected. The transaction is circular though given that you will need to declare the income and the partnership will split the deduction.
Mark Withers and his team at Withers Tsang & Co specialise in advising on property related transactions, valuation and restructure services and tax planning.