Purchasing property is one of the biggest financial commitments you can make. However, what’s even bigger than that is when you decide to purchase additional property with the objective of making this an investment rental property. In this article, we’ll be uncovering the basic requirements for successfully managing investment properties, so you can assess whether you might need some additional help.
The initial process involves getting people (tenants) knowing about your property. This might be through a range of advertisements online and in print. You’ll then need to screen tenants and conduct background checks to make sure that these will be the right tenants for your property. Following this, you’ll need to prepare your property to be inspected by these tenants in order to get an occupant.
There are a number of legal checkboxes that need to be ticked in property management. Lodging the rental bond on time, conducting the legal amount of checks at the right time and accurately completing the lease agreement are only a few of the legalities associated with property management.
This is arguably one of the hardest parts of self-managed property management. If you choose to manage your own investment property – you’ll be the one that needs to collect the rent and chase it up if it’s late. For late payments, it’s not just a case of knocking on their door, but sending the right notices at the right time. If this is stress that you don’t have the time to deal with – a property manager can do it for you for a percentage of weekly rent.
Whilst this is a seemingly ‘easy task’ – you may not necessarily think so when your tenant is calling about a leaking pipe at 5am in the morning. You’ll need to conduct a legal amount of checks at specific times – and not simply drop by unannounced. You will need to organise repairs and call in the right people to fix housing issues. Professional property managers often have a list of trusted tradies that they can call on for repairs.
Apart from trying to prevent disagreements and issues from arising, sometimes you might find yourself in the position of needing to resolve a disagreement. You need to be prepared to conduct dispute resolution before the issues can become bigger.
When you manage your own investment property, there are a few key factors to consider to increase the chance of success. If you don’t believe these are things that you can do, or have the time to do, then it might be best to call in the experts to take care of the hard work for you. For a professional property manager, contact us today at 1300 103 013.