Hi Everyone,
I'm thinking of self managing my two bedroom appartment I.P. As it is 1 of 6 units there is already a body corp that handles a lot of the maintenance and it doesn't seem like the agents do all that much once the payments are set up and the contract are signed!
Is this an ignorant view?
I only have one I.P and this will not change for a while. I could understand if I had a large port folio it may not be worth it.
I also work from home and would be able to allocate a bit of time when necessary
Cheers,
Shannon
Hi Shannon,
Good question, I'm actually considering doing the same but haven't researched it too much. We've had the same tenants since the day we bought the place in 2006 and while the PM rings occassionally and tells me its about time to put the rent up or that she's had an inspection and it's all good, it seems to be money for nothing? – Okay, I'm not that naive but I think you know what I mean. We all put so much effort into trying to find a CF+ deal and here I am giving away $3000 a year???I know a good PM is worth their weight in gold when there's a dispute, but perhaps with a bit of relection on the type of tenant we have it might be money well saved and the difference between as Negative Gear and a CF+ IP.
Also I've heard of some property managers agreeing to a 'finders fee' of a week or two in rent, where they advertise, screen the tenant etc and then you manage the IP yourself. Is this a myth or is it do-able?
Interested to hear other thoughts.
Not a myth but many agents are reluctant to do one-offs, would you for a couple of hundred $?
Iniyially it is often worth having a pm just so you can see what is involved. It comes into its own when finding a tenant, managing arrears, repairs, or a bad tenant at the tribunal.
Hi Shannon
I manage my two year old one bedroom apartment in Canberra. It’s sooo easy and I would recommend you do it rather than paying for a property manager. The only reasons why I would personally go with a PM is if:
– i had limited time;
– i bought interstate; or
– i rented a house with no strata/BC.I have been very lucky to date (touch wood) and have had good tenants. Whenever I’ve advertised online, it’s taken about 2 weeks to find good tenants, and they have always paid on time each fortnight into my bank account. All i’ve had to do is:
– take bond and lodge it with ACT rental bonds;
– buy a lease agreement from the newsagency and fill in the blanks;
– photocopy keys and complete condition report (get a copy back from tenant);
– complete inspections every 6 months.I like managing it myself because i can see how the property is going, but also be more involved in the selection process (i.e. i always do referee checks and get heaps of details of the prospective tenants). The only issue I have had is when there was an error with one of the major banks and the tenants money didn’t go in my account for 4-5 days. I called them and they did everything they could, so i wouldn’t really call it an issue.
The best part about doing it yourself is you only need to look after the inside of your apartment (and even some stratas have kitchens etc covered under body corporate)… everything else is looked after for you.
I’m thinking of buying a property interstate — if i do this, I will definitely go with a PM because it would be harder for me to do it by myself. But if you live local and are up for a challenge (or some fun, depending on how you see it), then manage it yourself and save 5-9%!!
Cheers
MattDefinitely possible, you just have to find the right PM business or RE Agent. My PM business is only a small home based one, but we offer a one off fee for advertising, finding and screening tenants and basically hand delivering a short list for approval by the owner with our recommendations/thoughts on each. Once a final decision is made we handle the tenancy agreement before handing it all back to the owner.
Definitely do some asking around as it is possible, if they aren't willing to serve you the customer then they most likely have just failed your first test in looking for a suitable PM. You will figure out pretty quickly which are client focused and which are income focused.
Hope this helps.
Thanks for the advice Shane.
Hi Rusty
We self manage our local IPs. We don't do it for the cost savings – we just had issues with inefficient property managers. We've had all sorts of tenants – from tenants that we've had to evict and go through the entire tribunal process to fantastic tenants that we'd only need to carry out inspections once per year. As long as you follow the tenancy law/processes in your state and are willing to confront issues if they arise (late rent payments,ect) then self managing can be a good option.
Cheers
Jamie
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]
Thanks all,
Great advice!!
I would only self manage if you are close by. Otherwise if the property goes pear shaped and you need to attend tribunal hearings etc they would be near the location of the property – which means time off work etc.
I recommend getting a PO Box for correspondence – that way the tenant doesn't know where you live.
Also check out if your insurance is ok with it.Before self managing you need to know the rules.
Do you know your rights? The tenants rights?
If there's a problem are you able to represent yourself in court?When there's a leaky tap etc the tenant will ring you. Are you OK with that? Are you willing to contact maintenance people? Do you have numbers on hand for emergencies? plumber etc. Sometimes tenants are great, but sometimes when they know they have the owners number it's very easy to ring you for the tiniest thing. PM's often deal with small issues without having to involve you.
Sure when things go smoothly it seems like easy money for the PM but when things don't that's when you appreciate them.
I'm not saying don't self manage (I do for some of mine- due to poor PM's) but know what's involved before jumping in and trying to save a few dollars.
It's a personal thing really. When I retire I'll self manage all the close ones.Thanks for the ideas. Certainly something to think about.
RustyCatalyst wrote:Before self managing you need to know the rules.Do you know your rights? The tenants rights?
If there's a problem are you able to represent yourself in court?When there's a leaky tap etc the tenant will ring you. Are you OK with that? Are you willing to contact maintenance people? Do you have numbers on hand for emergencies? plumber etc. Sometimes tenants are great, but sometimes when they know they have the owners number it's very easy to ring you for the tiniest thing. PM's often deal with small issues without having to involve you.
Sure when things go smoothly it seems like easy money for the PM but when things don't that's when you appreciate them.
I'm not saying don't self manage (I do for some of mine- due to poor PM's) but know what's involved before jumping in and trying to save a few dollars.
It's a personal thing really. When I retire I'll self manage all the close ones.Good point. You definitely need to know the state/territory residential tenancy act as well as the rights of both parties if there are disputes etc. There are some great Australian websites that cover frequently asked questions about tenants rights and the process of going through issues resolution — just google and you’ll find a lot of useful information. It’s also worthwhile speaking to other people you know who manage properties themselves and see what they have done.
If you go through a rigorous application process, and do referees and look at previous rental history, you should be okay. But one thing I have learnt — trust your gut instinct!!
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