Managing a Melbourne rental property from overseas

Many owners buy in Melbourne while they are living here, perhaps with a child at school or during a few years of work in Australia. Later they move back home or on to another city, and the property stays in Melbourne as a rental. The owner has moved on, but the property still needs looking after. Across time zones and languages, how do you know the property is in good shape, the tenants are reliable and the rent is arriving on time?

This article brings together the questions overseas owners ask us most often.

Four common challenges of renting out from a distance

• Time zones. When the hot water system fails and a repair quote needs approval, it is often the middle of the night where you are.
• Language and paperwork. Leases, inspection reports and statements are all in English, and the legal terms are not always easy to follow.
• You cannot see the property. You rely on someone else's description of how it looks today.
• The rules change. Victoria has updated its rental laws a number of times in recent years, including minimum standards that rental homes must meet. From overseas, it is hard to keep up.

Five questions to ask when choosing a property manager

1. Who will look after my property? Will it be one dedicated property manager, or whoever is available? How often do managers change?
2. How will you keep me updated? Can you report in my language? By WeChat, email or phone? How often?
3. Do inspection reports include photos and video? When you cannot be there, photos and video tell you far more than a written note.
4. How is rent paid to me? Rent collected by a licensed agency goes into a trust account and is paid to the owner on an agreed cycle. Ask how often you will be paid and when statements are issued.
5. How are repairs approved? You can agree a spending limit: small repairs under the limit are handled first and reported afterwards, while anything above it is quoted and approved by you before work starts. Urgent repairs are not held up, and larger costs still come to you.

What to check in the management agreement

Before you sign, make sure you understand how management and leasing fees are calculated, the repair approval limit, how often and how you will receive updates, and the notice needed to end the agreement. If anything is unclear, ask the agency to explain it, in Chinese if that is easier for you.

Beyond leasing: a few other things to keep in mind

• Tax. Owners who live overseas generally still need to declare rental income earned in Australia. An accountant familiar with cross-border situations can help.
• Vacancy. Victoria may charge a vacant residential land tax on homes left empty for extended periods in a year, so long gaps between tenancies are worth watching. Check the State Revenue Office rules and get professional advice for your situation.
• Insurance. Alongside building insurance, many owners also take out landlord insurance. Check the details of cover with your insurer.

A real example

One of our owners bought an apartment near RMIT while living in Melbourne with her child. After her child finished a postgraduate degree and the family returned to China, the apartment was placed in our care, and we have managed it for the past three to four years. Our Melbourne team handles everything at the property and keeps the owner informed in Chinese. Read the full story →

It is not only owners overseas. One owner based in Sydney has had his Melbourne townhouse in our care for five or six years. Read his story →

This article is general information only and is not legal, tax or financial advice.