Hello All, Seeking advise on leasing my IP which is Studio in Melbourne CBD. The building also operates as a serviced apartment and promises a return of $390 pw on a 5 year lease, however charges a 8% management fee plus GST. OR I have the option of privately leasing it for between $400-$430 pw on gumtree or flatmates with a proper contract and self inspecting it. Appreciate all valuable advice.
I wouldn't self manage unless you know what to do if things go wrong. So is your studio planning approved for normal residential, or short stay, or both?
Option 3: Get a property manager who charges 8% (or less), and rent it out for $400-430/wk. Then you're already $10-40/wk better off, and can increase rent when able during those 5 years.
I agree with Mikey with option 3. @Simon L I have educated him on the likes of gumtree tenants. They are 99% likely to be listed on a tenancy database hence why having to look for a private rental. Do you really want to spend your free time chasing up rent or following up on inspections that are not to standard.
