DIY Property Management – The Pros and Cons
We love DIY. It’s intrinsically Australian. We are a nation that loves Bunnings as if it were our own. Thousands upon thousands of Australians spend their well-earned weekends and pay checks on DIY projects in and around the house.
Yet, when it comes to managing your investment property, sometimes DIY is not all it is cracked up to be.
The Savings in DIY Property Management
One of the major appealing factors of DIY Property Management is the savings. And yes, this is true. You will save pennies in property management fees. But, you must be careful that these pennies are just not redirected somewhere else due to poor, on uneducated management. For those seasoned investors who have undertaken property management of their own properties for some time, DIY property management can work just fine. If you have the experience, the know-how and are up-to-date with your State’s legislation, then go for it.
For those who are entering the property investment market, handing the property management reins over to the experts is money well spent.
Property Management Fees and Duties
Most Property Management Agencies charge anywhere between 5% – 9% (+GST) as their fees. When engaging a Property Manager, they should disclose their range of fees (and if there are any extras – such as for renovation works etc) as well as their list of duties and policies (including inspections and rent arrears policies).
When Going DIY
If managing the tenancy agreement yourself, you will need to ensure you are right across your responsibilities and rights as a landlord as well as those of your tenants. The Residential Tenancy Authority has a host of information you should swiftly become familiar with. At a minimum, you will need to manage:
- Marketing and advertising of property
- Creation of tenancy agreement
- Vetting of tenants
- Selection of tenants
- Repairs and Maintenance
- Renewal/expiration of leases
A Final Word of Advice
If looking to DIY Property Manage your investment, remember to look at it as a job, not a hobby. It requires time, energy, patience and diplomacy. Ensure you have the time to tick all these off, otherwise, be heading to your local agency to enquire about managed services. Whether you are looking to invest the money into a qualified Property Manager or go down the DIY route, always be sure to take out adequate landlord’s insurance.
And cross your fingers for the perfect tenant!
Contact Us today if you’d like to discuss our Property Management services and how we can help you to avoid any DIY fails. aspect