Hey everyone a few months back i signed a one year lease with my tenant to stay in my second investment property. After six months there was to be a increase in the rent. I've being doing some figures and worked out that if i did the property management myself the property would be cashflow positive which is what i am aiming for to help secure more finace for my third property. So my questions are 1. IS the one year lease between tenant and I or am i binded to the property manager until the end of the 1 yr lease. 2. Is property managment really that hard to do as in time wise and finacially or is it just better to leave it to the experts. 3. The current tenant is great and always pays on time and has being in the unit prior to my possession of it and seems quite comfortable if i am able to get out of using the property management will this effect the tenant at all?
Cheers Tony
Tony Fleming | Triumphant Property Group
http://www.triumphantpropertygroup.com.au
Email MeNSW Buyer's Agent specialising in Western Sydney-Blue Mountains-Orange-Albury
I think it is when thing go wrong that property management comes in handy.
Like getting bond money when a tenant wrecks a house
Like getting called to fix a plumbing leak – Property manager will organise plumber with your permission unless its an emergency.
Like Property inspections
Like not getting emotionally involved with the tenant
like collecting rent that is behind.My advice is don't do it.. Duckster has stated some very valid points. Direct contact with the tenant creates a familiarity and leads to problems.
If your determined to do it, despite the above. Please make any contact between yourself and the tenant in written format ie. text, email, letter, fax, unless for emergency maintenance. Please make sure you have a PO Box for correspondence – do not let the tenant know your home address.
You can't afford to take people at face value. if you find you need to find another tenant do your reference checking thoroughly.
And remember agent fee's are tax deductible. We self managed and it ended very badly just recently. We just signed up with an agent who we researched. Even after his fee's we are still $80 a month better off.
Yeah, I reckon having it managed is pretty good value. Far less stress. If passive income is the overall plan than it's not passive if you have essentially just created another job for yourself as a property manager.
Do not manage it yourself. If you end up with a tenant that requires eviction, you do not wish for them to associate your face with a bad event in their lives. Best to keep your distance. Let a property management company be the front line.
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
Yeah that was my initial thoughts. I don't really have time and room for more stress. thanks guys
Tony Fleming | Triumphant Property Group
http://www.triumphantpropertygroup.com.au
Email MeNSW Buyer's Agent specialising in Western Sydney-Blue Mountains-Orange-Albury
Hold on………
So we are now saying that a person who receives a mezzly 9% from your rent can and will look after your property better then you.
I have had the opposite experience, the managed properties where painful and my self managed were fantastic. It's how you manage them……..
It's a lot easier to hire and fire a property manager than it is to allow in, and then kick out, a tenant.
Just choose your property manager wisely. Get referrals if you must.
Hi there, I agree completely with Number 8.
I manage a number of our properties and have done so for years without issue, I also find the ones that are managed through the agencies are the ones I am constantly following up, trying to understand their invoicing, questioning odd payments they take out, following up on money owing etc!
Seriously if you set it up correctly in the first place you have no issues. I highly recommend joining http://www.poaa.asn.au/
They have all the forms you need (that meet legal and leg requirements) and are fantastic when you have questions etc. They also have information on having external company do your inspections for you etc. They also have a database in which you can have searches done on potential tenants.
Number 8 was on the money – its all about how you set it up in the first place. You need to meet make your expectations clear and give clear instruction on processes for them – and also for yourself.
I would recommend it and am in the process of removing the managing agent from the last of our properties they are more trouble then they are worth!! I can only talk about good experiences.. I am sure there are some that have had bad experiences and I am sorry to hear that.. Its all about what you want and personal choice.. All I can say is make sure that you have somewhere to get the information from.. If you follow the rules and leg you cant go wrong and are only doing something that you are paying someone else to do??
Good luck with which ever way you decide to go… Just through I would add my two cents as there seems to be alot of people who don't believe its a good idea – I wanted to add some balance is all.. Best wishes!
Jodie
http://www.multiplepropertyservices.
I help people achieve their goals and dreams using property as the vehicle.. As me how today – no cost and obligation free!
You must be logged in to reply to this topic. If you don't have an account, you can register here.
