The option is entirely yours when it comes to managing your investment property, however it’s best to weigh up the pros and cons before moving forward with your decision. For first time landlords, managing your investment property can seem like a simple way to pay off your mortgage, but there is a lot more time and effort required for success.
Do it yourself property managers also need to manage lease agreements, rental payment authority, bond lodgment forms and property inspection reports. In the case that something goes wrong, the correct implementation of these documents could be the difference between a win or loss at the relevant tenancy tribunal. If you have a reliable tenant willing to pay market rates and you know how to protect your rights and your tenant’s rights in the event of a mishap, chances are your investment will run smoothly. Firstly, there’s a lot of legislation in place to protect tenants and landlords. If you don’t have the means to become familiar with the law, running the books on your own might not turn out well.
If you are thinking of managing your own investment property, then first ask yourself the following questions:
Are you prepared to evict a tenant?
How will you handle maintenance and repair requests?
How will you handle late rental payments?
Do you have the personality type that can keep your relationship with your tenant a business one?
If a tenant wants to break their lease early, can you assert your legal rights as a landlord?
Can you roll out a full marketing campaign?
How will you tackle legal disputes involving rental payment, lease conditions, and bond claims?
Using Property Manager
On the other hand, obtaining a property manager will likely save you a lot of headaches in the long run, especially when it comes to your ongoing obligations, placing ads, addressing maintenance issues, screening potential tenants, and showing your property. Property managers also market the premises to ensure it is priced right. An experienced and highly skilled professional manager also knows how to minimize operational expenses. On the downside landlords can expect to pay a commission of between 5% – 7% of the weekly rent plus GST. The commission rate can differ depending on the type of property and location being managed. If you are a first-time landlord with no prior real estate knowledge, then a good property manager will have the proper skill set to help get you on the right path.
At the end of the day, It all comes down to whether you can commit the time and effort needed to ensure your investment needs are met, as well as adhering to the rights of your tenant.
Get in touch with us to learn more about managing your investment property.