Managing your own investment property can require a lot more brainpower than buying a property. Considering factors such as maintenance, managing relationships with tenants, workloads, responsibility and legal liability – it can all become quite a headache for a landowner simply looking to rent out their property.
So, can you really afford to manage your own investment property?
If you haven’t spent years managing investment properties, there’s a chance that there may not be a lot of management experience under your belt. An investment property requires a lot of back-end management before you even have the tenant move in. This includes aspects such as marketing the property and getting it in a sales-ready state. It includes setting rent, screening and selecting the right tenants, the writing up and signing of a residential tenancy agreement, number crunching and absorbing legal liability. Without the right knowledge or resources, you may be opening yourself up to a world of liabilities and not know until it’s too late.
The benefits of having an experienced property manager at your side is so they can handle all the responsibility and issues that arise with the property. Whether it’s a burst pipe, moulded roof or lost keys – a property manager can guide you in the best solutions or simply resolve the issue for you. They can follow-up and ensure that the property is up to certain health and safety standards without you needing to constantly check.
Whether you have a troubling tenant, or are trying to keep your tenants happy, a property manager can make this task easier. They can maintain the task of chasing up overdue payments without you needing to worry. On the other end, they can also ensure that your tenants are receiving prompt responses to repairs and requests to keep them happy and renting from you for longer.
There are many rules and liabilities when you’re renting out your property. Are you meeting the right health and safety standards? Are you meeting your obligations under your Landlord Tenant Agreement? Does this conflict with what is required by state law? Being educated about legal requirements will keep you out of trouble, but also allow you to better understand processes and your entitlements. The right property manager should have a strong understanding of laws related to investment property management.
If you don’t have a lot of time to spare in a day, the last thing you want to be doing is organizing repairs, chasing up payments, screening tenants or dealing with complaints. If you don’t have the time to manage an investment property but are interested in having an investment property, you could transfer this responsibility to property managers who have the skills and expertise to effectively manage all your investment property issues.
Technology has benefits and limitations in property management. For a landlord, they may not have enough time to visit a property manager or it might not be effective to communicate with tenants by phone or email. Property Managers Online can manage tenant-landlord relationships online to ensure all the correct information is communicated on both ends without the inconvenience of both parties needing to constantly meet up.
In order to profit off of your property investment, you need to know how to work with numbers and properly manage your financial obligations. One of these financial obligations is paying tax. For inexperienced rental property owners, this process can be quite confusing – as this investment is also a business. Factors such as deductions and depreciation can also impact your finances.
There is a lot more to property management than simply just buying. You need the skills of a lawyer, human resource manager, an accountant, and so much more to manage an investment property. If you are lacking in one, you or your tenant might not be getting as much out of the process as you could be, or the process might be more difficult than needed.
Whether or not you’re ready to manage your own investment property depends a lot on your experience, skills and how much time you have. These processes can be made easier with the help of property managers who have a wealth of knowledge and expertise in investment property management, and can take the stress out of property management whilst you reap the benefits.