Over the past 10 years, my wife and I, I’ve done a mix of getting an agent to manage our properties and managing them ourselves (myself rather) so I wanted to start a discussion to see how others managed their properties and how they were getting along.
To start with I was thinking:
-
How you manage your properties?
How is it working for you?
Have you tried other approaches, like switching agents, managing them yourself or doing it online?
What would you like to see changed?Thanks in advance!
I source my own tenants however I have an agent in the middle to collect the rent, pay the utilities that need paying and be that first port of call for any emergencies. The agent is fine with this arrangement and it saves me the “listing fee” which is typically a weeks rent I believe.
Also the fact that I live overseas, makes it difficult to manage myself. Although I do know of people who do it, I don’t want to be the guy that needs to harass people should there be any concerns, and needing to keep track of rent cycles etc. I’ll happily pay my 5.5% to the agent to do that for me. If I lived closer I would consider managing it myself, but when I consider the time I’d need to spend compared to what I would save, to me its not really worth it.
-Rob
Hi Rob,
Thats facinating I’ve not come across anyone with that arrangement before and I’ve been going to Steve McNight seminars for years.
What’s your process for finding tenants yourself?
Thanks.
-Kaz
5% management using the two different agents we have.
1 weeks rent for each new tenants + about $40 for a renewal (if possible I always prefer to have a lease and not go month to month).What would I like to see more automated online reporting …..
1/ all rent collected, payment dates, last increases, trend line reporting etc
2/ all expenses dates etc
3/ online inspection reports – last dates, photos etcFor the amount of money they are being paid and considering these days most tenants are paying rent online etc….that’s the least they should offer for 5%.
If you are agent in Sydney and offer these features I’d be interested in hearing from you.
5% management using the two different agents we have.
1 weeks rent for each new tenants + about $40 for a renewal (if possible I always prefer to have a lease and not go month to month).What would I like to see more automated online reporting …..
1/ all rent collected, payment dates, last increases, trend line reporting etc
2/ all expenses dates etc
3/ online inspection reports – last dates, photos etcFor the amount of money they are being paid and considering these days most tenants are paying rent online etc….that’s the least they should offer for 5%.
If you are agent in Sydney and offer these features I’d be interested in hearing from you.
I hear you Dean.
I even struggle with some of the monthly ledger reports I get sent. Every time I look at one I wonder why it has to look so complicated.
From what I understand most of the main systems that the agents use have landlord portals but they just don’t get used. I’ve never asked the question directly but I put it down to either it just not being an industry standard (them not being comfortable with it) or theres not enough in it for the agency.
I’ll ask my sydney agent, who’s fantastic, if he can satisfy your needs.
Thanks for contributing!
If you want to self manage you need to make sure you are aware of all the rules and regulations.
My only concern is tenant checks. Bad tenants target self managers as there aren’t often checks in place.
I think it’s fine if you have 1-2. It can get a bit onerous if you have multiple, but then again you are saving more on fees.
It depends on yourself as well. Are you able to distance yourself from tenants personal issues or will you get attached and feel you can’t put the rent up because they just had a huge electricity bill (for example). If you have a good tenant everything can be peachy. But what happens when things go south. Do you know the procedures to go to tribunal etc?
Sometimes it’s better to keep it business like. Personal decision.
Property management all the way. If you’re looking at building a large portfolio I find this absolutely necessary, otherwise you’re buying yourself a full time job.
If self managing you need to keep on top of the legislative requirements and tenants needs – as well as keeping REGULAR inspections of your properties, which I find a lot of self managing LL’s forget to do. Some landlord insurance policies won’t cover self managed IP’s, or charge a higher premium so be sure to read the PDS.
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
Definitely agree with Corey. Recent changes to legislation mean that tenants now have many more rights than they used to. If you have a large portfolio you need significant spare time to manage it. I have several properties which are 500km away and it isn’t feasible to get in the car and inspect them regularly nor is it feasible to organise trades quickly from this distance.
I employ my own Property Manager and have done for some 14 years.
The lady concerned works solely for me on my portfolio and knows exactly what i require from her.
She also does all of our Property management & Vendor Finance statements.
For anyone building up their portfolio i would recommend you utilise the services of a property manager and certainly do not try and do it yourself unless the properties are in your back yard and you enjoy fielding phone calls late at night on a Sunday to discuss plumbing issues.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
If you want to self manage you need to make sure you are aware of all the rules and regulations.
My only concern is tenant checks. Bad tenants target self managers as there aren’t often checks in place.
I think it’s fine if you have 1-2. It can get a bit onerous if you have multiple, but then again you are saving more on fees.
It depends on yourself as well. Are you able to distance yourself from tenants personal issues or will you get attached and feel you can’t put the rent up because they just had a huge electricity bill (for example). If you have a good tenant everything can be peachy. But what happens when things go south. Do you know the procedures to go to tribunal etc?
Sometimes it’s better to keep it business like. Personal decision.
Hi Corey,
Thanks for sharing your opinion could you also share how you manage your properties? What works well for you and what doesn’t?
How you manage your properties?
How is it working for you?
Have you tried other approaches, like switching agents, managing them yourself or doing it online?
What would you like to see changed?Thanks in advance.
-Kaz
Hi Steve,
I couldn’t agree with you more re:
Recent changes to legislation mean that tenants now have many more rights than they used to.
But those change aren’t anything to be concerned about as long as your PM and/or you have been treating your tenants with respect. Would you agree?
Could you share more details around how you manage your properties?
Thanks in advance.
-Kaz
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