Creative Management and Creative Contracts
Creative management and creative contracts are where you use your thinking-outside-the-box kind of mentality to bring things into the deal at contract stage
Creative management can be through things like being able to economise on the regular rental of the property; things like who pays for the water, who pays for the electricity. Are you the person that does that or have you got separate water meters and separate electricity so your tenants pay for all of that sort of thing? Are you being ripped off by your managing agent? What are the expenses? Have a look at how much lawn mowing is really getting done; when you’re in the middle of a desert, the grass doesn’t grow anyway.
Have a look at your water consumption. What does the lease say about who pays the excess water consumption? Have a look at all of your expenses and try and make sure that you’re getting the best deal possible. Make sure that your rental properties are at optimum, that they’re at market rental and that at all times you’re getting the maximum amount of return on your property. The ability to pass on water consumption charges may depend on local legislation and the installation of water saving devices in the home and building.
We always recommend that you seek professional advice as this blog is for general information only