Hi All, i have just purchased my first IP. I have found out that the vendor wishes to rent it back from me for around 2 years. i have heard that one can get a lease agreement from VCAT and can keep the bond at the Bond Authority without having to involve Real Estate agents. Seeing as it is the current owner that will be renting it i feel comfortable that they will more than likely look after the property and dont anticipate too many issues with the above arrangement.
i would like to hear from anyone that has had or currently has this arrangement in place. Some tips on the pros and cons would be greatly appreciated.
thanks in advance for any replies
lostie
I know many investors that manage their own properties but I would advise against it. The Agent builds a buffer between you and the tenant which is especially beneficial if things go "pear shaped". You need to be in a position to make sound business decisions and having a close 1:1 relationship with tenant can hinder the process.
Just something to considerCheersI manage my properties myself,…
it's easy,… i would recomend it if you can keep it stricly business and aren't the type to stress out.
just remember to keep on top of rental incresaes
You can get a tenancy agreement from any newsagent for about $5. Just keep a professional relationship with your tenant. Cover all aspects in the rental agreement, be tranparent. But if your IP grows you have to use an agent to do it for you, with 1 or 2 it's ok. When you have more uyou need someone so you can concentrate on your growth.
thanks all for your responses.
lostie
it might be worth subscribing to http://www.thelandlord.com.au. I manage some of my properties and this site provides the documents relevent to your state regarding tennancy and communications with tennants.
I'm a bit of a soft touch so I'm a sucker for a hardluck story. This has cost me money at times. So be professional and don't get too chummy. Just send out the document immediately if their rent is in arrears so they know you mean business.
goodluck
thanks heaps for that tip milly
lostie
Hi Lostie,
I have managed two properties myself and have found it a rewarding experience in that I now know what the property managers are doing for me and what I am paying for. There is a lot to know but it is worth the effort and as the vendor is leasing it back, there is every chance you won't have too much hassle. I am not sure which state you are in (no pun intended) but I suggest you get a copy of the relevant legislation and here in WA there is book called 'The Landlords Advisory Book' which I found very useful. If it is still available you can get it and all the forms you probably need from a Newsagent. Timing of documentation is very important, that's why I now leave it all to property managers. Good luck
GeoffreyB
my wife and i manage one of our properties [adelaide] and have one managed by ray white [ipswich]. Ironically enough we have more problems with the agents than the tenants! we are cutting them away at the end of this year and managing both properties ourselves. More money in our pocket!
manage one and have an agent do the other .
i am sure i am the only owner on the books who actually likes fixing my property up.
i hate paying call out fees to have one washer replaced (every three months …)
as a rule they go for the largest ad in the yellow pages ………..and stuff that requires a bit of co ordinating takes a very long time and seems to cost double
if you get a good property manager you will be in heaven
if you get four a year due to staff turnover and internal promotion you wontLostie,
I echo the sentiments here that say it's worth DIY so long as you can see the benefits, as there'll be downsides(which is greatly reduced as you get more experienced). Think of it as running a business, as they say you need to be hands on to learn anything and also protect your investment better.
When you self-manage it's not just for saving a few pennies. You learn what's going on around the area. For example, I manage a group of apartments in Melbourne CBD and through handling the enquiries first hand, it led me to realise how many people were seeking furnished accommodation because they were on 6 month contracts or study. And the huge numbers of white collar professionals esp from India suddenly in melbourne, hence it surge of Indian eateries
. That's what you call having a finger on the pulse, seeing first hand who and what sort of demand your property is attracting. Most property managers won't tell you much unless you ask.That's the beauty of self-managing – the people you meet from all walks of life, the things you learn that become life skills, and it has the potential to lead you to bigger things. For me I plan to build a substantial property portfolio so I am motivated to learn all I can about property, as the saying goes you get what you put in. But as you get bigger, there will be a balance to delegate property management to property managers if it takes time away from finding the next acquisition.
PS: I find you can be both professional yet forge strong bonds with good tenants. A tip, if you're self-managing your property, is to "white lie" and say the property is owned by several partners/family members, or the owner is your relative, to create an illusion that you are more a property manager than owner and can't give them discounts etc without consulting others. i know in this particular case it doesn't work cos the tenant is the previous owner, but for other cases it can work. I know because I manage my relatives' properties as well as my own, and find this works well.
nice tip scarecrow !
today s news ! just finished bollocking my agent for the leaking tap which has been ongoing for a year i keep saying " please replace " and nothing happens .this weeks property manager is away on a course ( probably resulting in a promotion and another trainee )
i booked a rival agent to do an inspection / valuation and the boss was on the phone in a half hour RESULT!
side note ….rival agent reckons he can get $50 a week more in rent ( so i can re finance and pull some money out ! )
more soonthanks for the great advice scarecrow7 i will certainly give it some more consideration.
lostie
Hi
I have 3 IP properties ,2 R located within a couple of Kms of where I live. I handle these. The other one is 200 kms away so I have a PM to handle this one. U R right ,a leaking tap and the PM engages a plumber ($ 90.00 to fix) ,where as if I was closer I would have replaced the washer.
The choice is yours.
cheers.
. That's what you call having a finger on the pulse, seeing first hand who and what sort of demand your property is attracting. Most property managers won't tell you much unless you ask.
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