Should I Manage My Own Property?
Managing your own rental property on the face of it will save you money, but have you considered what could go wrong and how you will manage it if it does go wrong?
Here are some things for you to consider before going down the path of managing your own property….
Will you attract the best tenant and get the best rent?
Good tenants are hard to find and finding a great tenant in a soft rental market takes a lot of work. It is not just about placing a smart ad with great photos online – hoping that a prospective tenant will come across it. An experienced property management team will have existing relationships with many relocation contacts and maintain a tenancy database. They also have the flexibility to show prospective tenants through more readily and match suitable tenants from other listings on their books. A qualified agency will also have access to conduct online background checks on potential tenants.
Do you enjoy late night calls?
Consider the time! When something goes wrong, the tenant is going to get on the phone and demand help, If they can’t get immediate help they will be unhappy tenants. Do you really want to be receiving calls at all hours or whilst you are in a meeting or worse, on that much deserved holiday? The workload, responsibility and legal liability that is involved with self-managing can often exceed the cost of engaging a professional property management agency. Tenants expect problems to be fixed quickly and reliably.
Is the rent being paid?
Managing your own rental property is a full time job and it requires its own structure and organisation. That means clear and accurate ways to track revenue and expenses. Who has time for that? A real estate agent will provide regular and transparent reports on all income and expenses, making it easy to claim on your tax return.
Want to sleep well?
More than anything, a qualified property management company can provide peace of mind and help you sleep at night. Bad tenants can quickly ruin an investment, causing damage, legal hassles and expensive conflicts. A good proactive property manager will remove the anxiety and tension as they will manage these things for you if they were to occur. Remember your property is one of your biggest investments and hiring an expert should ultimately save you money rather than costing you money.
Will emotions get the better of you?
You have worked and saved hard to purchase a property, so how will you go negotiating with your tenant? Negotiations work better between parties when there isn’t any personal emotion or connection involved. If a tenant thinks you are being unreasonable they know their rights and will be happy to take you to court to get a fair hearing. This could be more time and money wasted unnecessarily unless you understand the Tenancies Act and tenants living in your property will use it within fair wear and tear definition.
Why do tenants like private landlords?
Most of the time it is because they have something to hide. They think using a private landlord their past won’t be found out and they seem to have a habit of continuing their bad behaviour.
If you decide that you will manage your property please keep a copy of the Residential Tenancies Act on hand and necessary forms can be obtained here. If you wish to seek the professional services of a real estate agency here are a list of questions you should be asking your potential property manager.
Or why not contact us!