Should you use a real estate agent for an investment property?
Thursday, November 16th, 2006Each person to their own, but if someone asked me the question, “Should you use a real estate agent for your investment property,” my answer would be, “Oh yes. Defintely yes. I have three investment properties and I wouldn’t do it any other way.”
“But what about the costs?” you ask. “The agent takes fees, which I could use to repay back the mortgage.”
True, but let me tell you, that 7.5% (our agents’ average), is the best 7.5% you ever spent.
Not only that, it’s tax deductible.
Why do I recommend using a real estate agent?
You don’t have to worry about the property. The agent does all that for you. If you have trouble with the tenant, the agent takes care of that. Property needs repairs—the agent is the first place the tenant calls. The agent will even inspect the property for you.
I know people who lease their own investment properties. I’ve done it myself in the past. It’s a pain. It’s a lot of work, and if anything goes wrong you have to fix it. If you have a problem tenant, you have to follow them up.
And like I said, the agent’s fees are fully tax deductible. For me, this is often the tips the scales between having to pay tax on my positively geared property, or getting a small tax benefit elsewhere.
So if you ask me, you know what my answer will be. “It’s the smartest thing you can do when investing in property.”