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Re: Managing your SMSF residential investment

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Can I self manage the lease on my smsf residential investment property... the house is next door to where I live ?
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Community Moderator

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Hi @Gray63denim

 

Welcome to our Community.

 

@MCA_Accountants is correct. You are not required to engage the services of a property manager or real estate agency to manage your self-managed super fund's (SMSF's) investment property. The investment rules don't prevent you from managing it yourself.

 

The fact that the property is next door isn't relevant. Being able to manage it yourself isn't dependent on where the property is located.

 

As @MCA_Accountants has said, managing it yourself can be great way for your SMSF to save some money on management fees, but the saving shouldn't be passed on to the tenant/s. Income from fund assets should always reflect a true market rate of return.

 

For more information about this, you can check out the SMSF restrictions on investments page on our website.

 

We recommend that you should consider appointing professionals to help you (refer to our website) with setting up and running your SMSF. Who you choose to use is up to you. Depending on the nature of your fund's investments, the only professional that you must engage every year is an approved SMSF auditor.

 

Thanks,

 

ChrisR

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Devotee

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Hi Gray63denim,

 

You absolutely can. You must ensure that you transact on a commercial basis (i.e. do giving someone cheap rent or generous payment terms), but nothing stops you saving on estate agent fees.

Most helpful response

ATO Certified Response

Community Moderator

Replies 0

Hi @Gray63denim

 

Welcome to our Community.

 

@MCA_Accountants is correct. You are not required to engage the services of a property manager or real estate agency to manage your self-managed super fund's (SMSF's) investment property. The investment rules don't prevent you from managing it yourself.

 

The fact that the property is next door isn't relevant. Being able to manage it yourself isn't dependent on where the property is located.

 

As @MCA_Accountants has said, managing it yourself can be great way for your SMSF to save some money on management fees, but the saving shouldn't be passed on to the tenant/s. Income from fund assets should always reflect a true market rate of return.

 

For more information about this, you can check out the SMSF restrictions on investments page on our website.

 

We recommend that you should consider appointing professionals to help you (refer to our website) with setting up and running your SMSF. Who you choose to use is up to you. Depending on the nature of your fund's investments, the only professional that you must engage every year is an approved SMSF auditor.

 

Thanks,

 

ChrisR