Managing your properties may sound difficult, but it is not always the case. There are two main factors to consider when you want to manage your own property investments: the effort required and your cost.
What is the effort required?
Finding your tenants
There are finder's agents who helps you look for and screen your tenants. Though this option is relatively hands off, it is also a relatively expensive exercise. I will cover more of this in the cost section.
There are many mediums to find tenants yourself. Utilising internet advertising is the fastest and easiest way to finding your own tenant. Paid services such as realestate.com.au and domain.com.au are the most effective. There are also free alternatives offered by various classified websites such as Craigslist and Gumtree. There are also many other free classified websites in foreign languages such as ozchinese.com.
There are commercial regulated tenant databases you can subscribe to perform relevant credit checks on your perspective tenants if you choose to be on the safe side. Once you have found the tenant you like, you may download the Tenancy Agreement form from your respective government agency in your jurisdiction, for example NSW Fair Trading and Consumer Affairs in VIC. It is important to know you do not require to be licensed to prepare this form.
At this point, you and your tenant may lodge their rental bonds online.
Managing your tenants
Part of managing your tenant is knowing your rights and their rights, for instance, you can only apply to evict your tenant if they have rent in arrears for more than 14 days. You may find more detailed information on what you and your tenants’ rights are here.
An important factor to consider when leasing out your property is to provide your tenants with only the basics. Everyone’s requirements and tastes vary, there is no reason to attempt to dictate what your tenant wants and needs, generally, the less moving parts, the lower chance your tenant is going to contact you with issues.
If you are leasing an apartment, a lot of the tenant issues can be solved by directing the tenant to the building’s strata manager. For issues that requires a handyman or a plumber can always be outsourced, simply asking your hired contractor to contact the tenant will be the most hassle-free approach.
You as the landlord is entitled to up to 4 inspections for any given year. You will need to give your tenant up to 7 days*** of notice prior. Performing inspections are important to keep your tenant aligned, it is particularly important to ensure the tenants are keeping your property clean and to also look for any damages the tenant has caused and notify them to have the damages repaired.
Managing your accounts
Keeping track of your bills, remembering to pay them and to bookkeep them can be a nightmare. This is where My Property Tools can help you out. With our free service, you no longer need to rely on Excel to help manage your properties. Being on the cloud, you can access your records anywhere in the world. Our free property management software allows you to keep track of your tenant and your property bills. With our bill reminders, you will be reminded to pay your bills on-time. Helping you save time during preparing tax records.
With our premium service, we bring you one step closer to a hassle-free property management experience. Did you know we can pay and bookkeep all your bills for you? Simply email us or upload your bills and everything will be sorted out for you!
Save yourself the expensive management fees!
This is one of the most rewarding aspects of managing your own property investments. An average property manager charges you between 5-8% + GST in management fees. For a typical property that rents for $700 a week will set you back up to $3,200 per year! With your property manager typically spending around 16 minutes on your property per week, that equates to an hourly rate of over $230!
Finding a tenant
If you prefer a professional find you a tenant for a peace of mind, an agency will typically charge you 1 week of your rent if you choose to have the agency manage the tenant for you. Otherwise, it’s 2 weeks of rent. If you’d like a professional to find you a tenant, try haggle for 1 week of rent instead, otherwise, you may as well have the agency look after your property for at least 12-20 weeks before taking back the property to manage yourself.
There are many advantages to managing your properties yourself, the strongest one being you are the most reliable property manager for your own properties. Huge savings, even if you only have one investment property, it makes perfect sense for you to take it on board yourself to get a feel of what it’s like. Bigger savings will come when you acquire more properties in your portfolio. Happy managing!