Deciding to manage your own investment property is a big decision and many DIY landlords don’t always understand the complexities involved. Many investors see it as an easy way to save a buck and cannot justify enlisting a property manager. Brisbane property management is also a highly competitive industry, and finding a reliable property manager can be difficult. However, especially if this is their first time renting a property, landlords quickly realise there is more to being a rental manager than just collecting rent!
5 Problems Faced by DIY Landlords
As with so many industries nowadays the biggest issue facing landlords is the legal implications. QCAT (Queensland Civil & Administrative Tribunal) can be a nightmare for first time landlords. Keeping regular records detailing your property’s condition pre, during, and post rental is essential. If you’re going to be a DIY rental manager, you will need a solid knowledge of the tenancy legislation for Queensland (or your particular state), along with all the required paperwork. No one wants to go to court, it’s a waste of time and is very expensive. Common issues that may need to be address legally are fail to maintain your property, failure to pay rent, and having pets without approval just to name a few. Mismanagement in these situations could cost you from a legal standpoint.
Screening possible occupants is extremely difficult for DIY property managers. Property management companies have access to professional databases which give them a plethora of information including the applicant’s previous rental history, credit checks, employment checks and much more. This is all very time consuming and hard to achieve for the average property investor. Unfortunately, some tenants are serial offenders who aim to take advantage of landlords. These types of uncontrollable tenants know the laws which can often make it quite difficult to deal with. Professional property managers are trained in these areas and can help to avoid these problems from arising through proper screening and management.
The laws for each state highlight the procedures for conducting inspections and how much notice is required. Failing to meet these requirements leaves you liable legally and can attract costly penalties. There are obligations for landlords to inspect properties to carry out pest control, smoke alarm checks, and other safety checks. Organising these with tenants can be difficult. Landlords must also adhere to the appropriate authoritative bodies such as the RTA (rental tenancies authority). If this is something you have not done before it can be quite overwhelming.
Not only is property management a time intensive job. There are a lot of associated costs that go along with it. For most landlords, they are trying to do their day job while managing their investment property. It’s simple, you wouldn’t do a plumbers job because it would take you a week to change a washer. Same thinking applies to rental management- employ a professional and get a professional result.
Protecting your investment:
Chasing up late rent can be extremely frustrating and can quickly become a financial burden. Can you afford to be locked out of your own home because you cannot evict dodgy tenants? These emotionally charged situations can become quite dangerous for landlords and can often result in damages to your property. With a professional property management team, these sorts of problems are much less likely to occur, and keeps you, your property, and your income safe.