So you own a rental property, and you want to manage it yourself. This seems like a great idea! You will save money on fees, and honestly, how hard can it be?? You can take it on as your hobby, while you work full time and save for the next house, right? Great, lets look into this in more detail.
These are some of the hats you will need to wear. You will need to be an accounts admin, tracking rental paid-to dates and invoicing water bills each month. You’ll need to be on call 7 days a week, for so-called emergencies. You will need to be a letting specialist, and market the property with good photos on the right media channels, and deal with vetting tenants, taking in-going and out-going inspections and negotiating bond and rent to be paid before keys are released. You will also need to be a tough credit controller, and have a good understanding of the law around tenants and landlords. Sounds fairly straight forward right?
How about the systems and procedures you will need? Tenancy agreements, bond lodgment forms for in going tenants. You will also need the right written notices required for rental arrears, rent increases, access for maintenance and inspections. Also, what will you do when you need to evict the tenant? How will the bond be refunded? What kind of damages can you legally charge the tenant for, and what if they don’t want to pay? Will your insurance cover you… have you met all their terms and conditions?
Now you have a better idea of what managing a rental property is like.You can’t do it as a hobby, it needs to be done professionally. A property management company will have the right people, in the right positions and have strict business policies to professionally manage rentals. Hobbies are things that allow you to make mistakes, and learn at a low risk. Managing your rental income of around $500 per week, and looking after your $800,000 property should not be left to a hobbyist.
Look for a good property manager in your area, and find out more about what they can do for you. I’m running a few promotions at the moment, and I love coffee, and talking to landlords about property. So don’t hesitate to contact me.