DIY or property manager?
It is a tough choice to make deciding whether to DIY or use a Property Manager. We will give you some tips that will make the decision easier.
Taking a do-it-yourself approach will save money but there are many pitfalls involved in meeting the legal obligations of a landlord, and it can take time and money to deal with tenants, property inspections and co-ordinate property repairs.
Most landlords choose a property manager, and you can expect to pay fees averaging around 7% of the rental income for this service though this may be negotiable.
No matter whether you take a DIY approach or you use a property manager, it’s good to personally inspect the property at least twice a year. This will identify any potential tenancy or maintenance problems before they become a major issue.
Loanseeker broker tip
Make your property stand out
One of the best ways to maximise the returns on your investment is to make your property stand out from the crowd. Look at your property with an objective eye and consider what it offers that other, similar properties may lack. Features like abundant storage or secure parking should be emphasised when the property is being marketed.
Role of a good property manager
A good property manager should take the effort out of owning an investment property by:
- Guiding you on the market rent you should be able to charge for your property.
- Organising a new tenant including advertising the property, conducting inspections, interviewing tenants and checking references.
- Collecting rent payments and depositing the cash into your bank account.
- Drawing up the lease and managing the legal obligations of a tenancy including depositing bond money with the appropriate authority.
- Preparing a detailed inspection report at the start of each tenancy that details the condition of the property.
- Arranging and conducting regular property inspections before, during and at the end of each tenancy.
- Responding to tenants’ ongoing needs including organising emergency repairs if necessary.
- Providing regular statements for the landlord itemising rent received and any outgoings.
- Organising and attending tenant tribunal hearings if necessary.