One of the most important decisions landlords make is whether to manage their rental property themselves or enlist the services of a professional property manager.
DIY property management may sound easy but it can be quite complex and there are numerous traps.
A major issue facing landlords is legal implications, as risk management is now an important part of property management. If you are going to do it yourself then you need to have a thorough understanding of the tenancy legislation and paperwork required.
There are also many day-to-day problems that can arise. Common issues that need to be dealt with are tenants getting behind in the rent, having pets without approval, gardens and lawns not being maintained.
As many landlords often develop personal connections with their tenants, they may feel uncomfortable chasing rent arrears. Property Managers are emotionally removed and it becomes part of their daily routine.
Traps Private Landlords Should Avoid:
Not Having a Rental Agreement – A rental agreement is a legally enforceable contract.
Failing to Take a Bond – This is a deposit held at the bond centre in case tenants don’t meet there obligations under the tenancy agreement, such as failing to pay rent or causing damage to the property.
Not Filling Out a Property Condition Report – this document along with photos describes the standard of repair for the premises and any items included, such as furniture. It protects the interests of both parties.
Not Understanding Tenancy Laws – If landlords do not comply with the legislation, they can face fines.
Inspecting Without Correct Notice – The tenancy laws state how often inspections can be done and how much notice must be given to tenants. Failing to issue the correct notice can mean costly penalties.
Peace of mind is one of the biggest advantages of enlisting a property manager to look after their rental investment.
Although there is a cost involved in an expert, landlords are paying for a professional service and the fee is tax deductible. A property manager can also give advice on how to present the property to attract quality tenants and get the best rental return.
For a full insight into the service and fee structure for Harcourts Cooper & Co Property Management or if you would like to join us, please contact one of our Business Development Managers.
They will talk to you about your needs, give advice and take you through the Property Management Authority.