I'm building a brand new 4×2 house and considering renting it out myself without using a property manager. Does anyone have experience renting out properties without the use of a property manager? What are the potential pitfalls I might face?
Hi there
There's been a few posts on this subject recently – here's one to get you started https://www.propertyinvesting.com/forums/community/opinionated/4330540
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Hi Daniel
We could do the plumbing ourselves but we budget to use a plumber. To us, paying property management fees to a GOOD property manager, is far more preferrable than the sheer frustration of working within the Residential Tennancies Act.
Our favourite property manager had a great nickname, "The Terminator"
i.e. make sure your property manager is fair but tough and meticulous when it comes to regular inspections. It doesn't overcome all the challenges generated by tenants but it sure keeps a lot of the rubbish away from us.Cheers, Paul
Paul Dobson | Vendor Finance Institute
http://www.vendorfinanceinstitute.com.au
Email Me | Phone MeAn alternative way to finance your home.
Daniel Mare wrote:I'm building a brand new 4×2 house and considering renting it out myself without using a property manager. Does anyone have experience renting out properties without the use of a property manager? What are the potential pitfalls I might face?If you have time to spare and you are within reasonable driving distance from property then sure why not manage it yourself, if you are busy you might want to consider a local manager. Personally I have no inclination to manage my own properties as its time consuming and frustrating. I prefer to leverage and use the services of people who do it full time and make better use of my time elsewhere i.e. making money.
Vetting prospective tenants is the first and most important task, which even many experienced Property Managers do poorly, for one reason or another. So those less experienced need to be extremely thorough in this area.
One of the PM tools is the TICA database which is powerful when used correctly, usually not available to private landlords.
Search this Forum on "vetting tenants" and be so thorough that you feel the applicant is close to withdrawing.
You must be convinced by confirmed and proven information that the applicant can afford the rent now and later.
I don't house the able-bodied unemployed, coz I already support them enough. Employment = work ethic = income.
Applicant must prove their own identity with 100 pts ID system with current recent bills, photo ID, refs to landlines listed in the current phone book, refs from REAs not private, etc. Anything isn't quite right, decline the application and no reason is required.Or ask a PM to setup a tenancy for you for a fee, and then run it yourself.
Cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
If it is in Victoria visit a local consumer affairs office and pick up their pamphlets on being a landlord as they have pre-made forms for renting out houses.
NSW has the info online as well, including the lease & inspection/condition report.
i.e. make sure your property manager is fair but tough and meticulous when it comes to regular inspections. It doesn't overcome all the challenges generated by tenants but it sure keeps a lot of the rubbish away from us.
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