Are you considering DIY property management? It may seem like a good idea, but it’s important to be informed and educated with regards to what the role involves and the steps you need to take to make the experience a successful one. We found this great article written by Samara Bedwell, for realestate.com.au In it you will find 5 common traps to be aware of when undertaking property management.
One of the most important decisions a landlord will make is whether to manage their rental property themselves or enlist the services of a professional property manager.
While DIY property management may sound easy enough, it can actually be quite complex and there are potential traps.
One of the biggest issues facing landlords is the legal implications as risk management is now an important part of property management. If you’re going to do it yourself, you’ll need to a thorough understanding of the tenancy legislation and paper work required.
There are also many day-to-day problems that can arise. Common issues that may need to be dealt with are tenants failing to mow the lawn and maintain the gardens, having pets without approval and getting behind in the rent.
As many landlords often develop a personal connection with their tenant, they may feel uncomfortable chasing arrears. Property managers, on the other hand, are removed from the emotions.
If you are considering managing your own rental property, it’s important to be aware of the pitfalls.
Here are five traps to avoid:
Failing to ask for a bond
This is a security deposit which is held in case the tenant doesn’t meet their obligations under the tenancy agreement, such as causing damage to the property or failing to pay the rent by the vacate date.
Not having a lease
This is a legally enforceable contract which usually spells out the length of the rental agreement, the amount of rent that will be paid, and the condition the property must be returned in.
Not filling out a condition report
This document describes the standard of repair for the premises and any items included within the premises, such as furniture. It is designed to protect the interests of both parties.
To read the rest of this article head on over to 5 Traps for DIY property managers.