Hi Guys
I’m a new member and have been reading all the valuable info dispersed in this forum. Wish I’d joined ages ago!! And I now need some of this knowledgable advise please!?!
Having just finished the second Steve McKnight book I was motivated enough to buy two investment properties in a rural town for $140k each renting for $310 each per week – an unbelievable find I couldn’t refuse!!
I would like to self manage these and need info about bonds (I seem to remember reading that they have to be kept with either an independant party or held at a bond board??) and how to correctly formulate and make binding a rental agreement. Is there somewhere I could go to get a pro forma rental agreement perhaps??
Thanks heaps
Lisa[upsidedown]
Lisa Osmotherly
Originally posted by camnlisa:Hi Guys, Having just finished the second Steve McKnight book I was motivated enough to buy two investment properties in a rural town for $140k each renting for $310 each per week – an unbelievable find I couldn’t refuse!! I would like to self manage these and need info about bonds (I seem to remember reading that they have to be kept with either an independant party or held at a bond board??) and how to correctly formulate and make binding a rental agreement. Is there somewhere I could go to get a pro forma rental agreement perhaps?? Lisa[upsidedown]
Lisa OsmotherlyHi Lisa
Don’t do it!! I have a considerable number of IP’s in rural towns /regional cities, as well as prime real estate investments on Qld’s Sunshine Coast.
Trust me, self-managing is almost invariably a recipe for disaster, especially when you live far, far away.
This, of course, assumes you can find a good local rental manager. If this is a problem, provide details of the area, either through PM or openly, and there are people here who can help you with recommendations of good rental managers in most places in Australia.
I’m a school teacher /property developer, with no interest in promoting RE agents. It’s just that, given my good experiences with tenants over 20 years, I still rely on my network of rental managers
Cheers
GregI’m with Greg – don’t do it.
I tried it once. Never again.
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http://www.depreciator.com.auHey Lisa,
Make mine vote no.3 for DON’T DO IT!!! [thumbsdownanim
If you are going to buy in a rural area, for pete’s sake have the good sense to find yourself a property manager, otherwise you are flirting with danger.
Please re-consider, perhaps not the properties (if you are convinced of their potential) but certainly the (long distance) self managing prospect.
Cheers,
Jo
If, after a few wise warnings, you are still keen.
You need to find the equivalent of the consumer affairs office in you state.
You can get all the forms you need,, (I am in VIc)
Bond lodgement forms (cheque must go to Residential Tenancies Bond Authority)
Lease forms
Property Condition Report
Landlord/tenant responsibilities handbook (hand out one to every tenant)
Pick up Notice to vacate forms, bond return forms, breach of duty forms .
Then go to a direct debit company (ie: Ezidebit) and register so you can have payments automatically put into account
Then register with Centrepay (Centrelink) for same thing.
BUT IF YOU DECIDE TO DO IT YOURSELF, the majority of your problems with tenants are stopped at the due diligence stage.
Police Checks, Credit Checks (be careful how you do these), References from past rentals, character references, and see if you can get onto a defaulting tenant data base. TICA is the one agents use, but you would have to know one.
And hook up with repairmen sparkies, plumber and handy man in area first.
Maybe get agent to find your tenants and then self manage??
Good luck.
Live, Learn and GrowLifexperience
You might save some money with self-management, but the management fee is tax deductible, and you risk issues such as longer vacancies between tenants, selection of tenants, getting tradespeople to do repairs promptly.
Hi Lisa,
I’m amazed that you’ve managed to find 2 properties at $140 each and with such a high rental. Care to give away any secrets?
LandtHiya
Thanks for all the replies … especially LifeX for answering my question.
I should perhaps have explained the situation more fully …. I actually live in this town and have done so for 25 years (most of you assumed that this was a long distance thing!!). There is a huge demand for housing here and I know that very little is being built. These two IPs are the only two for rent in the entire town. The surrounding towns are also booming and will do for some time.
I have the National Bank chasing one house and another equally reputable and secure company wanting both houses for long term (13mths NAB and 2-3yrs the other Co) guaranteed rents.
Don’t really see the need to worry as implied by replies I received! Have your opinions changed or does the investment still seem risky to you (would really like your experienced opinion)??!!
Landt64 – will fill you in more once we have purchased two more properties in return for equivalent info!!!
Cheers
Lisa[wink]
Lisa,
It’s not all doom and gloom, I self manage two of ours and it’s not been a major headache. Yes, there’s been the odd hiccup but nothing that couldn’t be sorted over the phone or by phoning a tradsperson in the area to look at it. Having said that you can always change over to an agent if you find it too much.
Best Wishes
Judy
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