It can be tough time being a landlord, a slightly weaker housing market and tougher tax rules are prompting some landlords to save money and first on the chopping block can often be their Property Manager, so would you undertake your own property management?
An estimated one-third of Australia’s two million plus real estate investors manage their own properties rather than rely on the professionals, so we ask the question is it all worth it?
Do You Have The Time?
Life is busy, we all know it, so the number one question is, do you have time?
Finding ideal tenants and juggling their ongoing needs can be challenging, especially if you are working full-time, so for property investors looking to pocket all of their rental income, are the savings really worth the hassle?
Of course, we are a little biased but outsourcing will allow you to have more time for yourself and the needs of your investment property taken care of by professionals.
Do You Know The Current Residential Tenancy Laws?
In Australia, there are numerous legal and legislative structures in place to protect both tenant and landlord which vary in each state.
Keeping up to speed with the relevant Acts and Legislation is something that needs to be considered. Often it is recommended that you complete a short course in Property Management, either run or recommended by the Real Estate Institute (REI) in the state where your property is located. These courses can give a landlord, who chooses to self-manage, the necessary tools to handle certain situations should they arise.
It is not uncommon that disputes involving rental payment, lease conditions, and bond claim to end up in a tribunal. It is during this time that a judge will take into consideration whether a landlord has taken the appropriate steps and can provide the appropriate records as evidence that to what may have occurred, this is a vital point for any self-managed landlord to consider.
So, What Does A Property Manager Do?
Apart from advertising for tenants, vetting suitable candidates, collecting rent, and organising maintenance, Property Managers also deal with difficult situations such as disputes and issuing breach notices should they occur.
It is often suggested that tenants preferred dealing with Property Managers, as that are perceived to be better equipped to deal with unexpected issues. Some landlords may also not feel comfortable negotiating leases, rent increases and maintenance issues with tenants and outsourcing can provide an arm’s length approach to a transaction.
Choosing The Right Real Estate Agent
There is no doubt that an agent will make you an attractive offer for the ongoing management of your new property but consider your options here when deciding if this is the right Real Estate agent for you or just potentially another number on their books.
If there is an influx of properties all available for rent or a large number of properties for a single Property Manager to manage, will you be their priority?
Consider a boutique agent who’ll put your needs first.
Benefits vs Risks
It is essential to have a comprehensive knowledge and documentation that clearly sets out exactly what you managing. Remember to do your research and consider if this is the right investment for you and your family, a savvy investor would often be best to engage a professional Property Manager and remember those costs are tax deductible.
AUSTRALIAN TAXATION OFFICE >> EXPENSES YOU CAN CLAIM >> https://www.ato.gov.au/General/Property/Residential-rental-properties/Expenses-you-can-claim/
DEPARTMENT OF FAIR TRADING >> MANAGING A PROPERTY >> https://www.fairtrading.nsw.gov.au/housing-and-property/property-professionals/managing-a-property