- Landlord still needs to comply with the relevant tenancy act;
I never had anything to do with my IP, agent emails to advise new dryer required or light fitting repaired. Provided 3 quotes. Approved. Done. New tenant - they advertise, provide top 3 candidates. I approve one. Literally takes a matter of minutes.
- Tax implications. Makes it harder if they need to report this in the home country and the property was just a vehicle to transfer wealth overseas;
Do they need to if they are paying relevant taxes in Australia?
- Possible language barriers between the landlord and property manager;
Non issue. If you owned a property in Spain and could earn a rental return from it. Would you forgo that income because the local agents didn't speak English?
- Insurance becomes a pain. Most insurers will not insure a foreign national who permanently resides overseas. Most foreign insurers will not provide landlord cover to a property in Australia;
I don't think this is true. The insurance company will issue landlord insurance on a property through an agent.
- Can no longer use it as a holiday home when they visit Aus every other year
The income will pay for multiple holiday visits per year.
And that is just a brief summary. Way too much hassle to chase a ~2% yield.
More like 3%, but even at 2%. A million dollar property will give you $100k over 5 years.
I guess you're right, some don't want the $100k, I would.
