Are you considering doing DIY Property Management? If so, here’s what not to do!
When it comes to choosing a Property Manager to look after you rental property, you get what you pay for! Yes, it does cost a management fee. To have a trained, experienced and dedicated Brisbane property manager from Position One manage your rental property and tenants on your behalf is a blessing. So we always explain that over the longer term, there is huge benefit from using the best property management team in Brisbane!
What is DIY Property Management?
Do-it-yourself or DIY Property Management is when someone has chosen to manage their own rental property. This includes everything associated with dealing with tenants, collecting the rent, managing repairs, lease agreements, and advertising by themselves. No doubt, there are many property owners who have been tempted to handle the management of their rental properties by themselves. And when you hit that "sweet spot" with low maintenance costs, and low vacancy rates, all is well. Then it can seem like property management is a pretty straightforward job – right? But beware when it comes to letting down your guard and thinking it's easy. Because there are more than just a few tricks when it comes to managing a rental property! Especially when it comes to making sure that you don’t get stuck with a vacant property for an extended period.
DIY Property Managment– what not to do!
Fair enough, DIY Property Management can save the money and costs associated with paying for a professional property management agent. But that doesn’t mean that you should try to cut corners at every opportunity. If you are doing DIY Property Management, you do need to stay up to date with the legislation regarding leasing and rental properties. There are always changes and updates to the legislation. Two such examples are around smoke alarms and pool fencing. In fact, we think it is important for all property owners to stay up to date with property ownership guidelines and policy.
A Rental Property is not just an investment
A rental property is actually someone’s home. At Position One, our property management team applies this fact to all of the properties we manage. We respect our residents and our owners. In accordance with the Queensland property leasing legislation, Landlords are required to provide a comfortable, safe and secure property when rented out to tenants. So any DIY Property Managers cutting corners with the standard of their property, there are pitfalls. Consider, for example, if you lease a property, say, with an air conditioner. You must maintain the air conditioner in good working order. If a tenant signs a contract with a working air conditioner, then they are legally entitled to have that air conditioner maintained and operable for the term of the lease.
Can you devote the time needed for Property Management?
It pays to stay in regular communication with tenants, and to maintain regular inspections of a rental property. It can be tempting to just leave things meander. But that is simply not good management. It is also unrealistic to expect a tenant to provide an inspection with short notice, or just whenever it suits. That is also not good management, nor permissable. Often, our property managers have to make themselves available whenever the tenant is available for a general discussion about the property, or to conduct a property inspection. But that is our policy at Position One, and that is all about good property management. Then there is attention to detail. When it comes to collecting the rent, dealing with rent in arrears, managing the lease agreement, and meeting all of the maintenance requirements and tenant requests, attention to detail is critical.
Be aware of the hidden costs
DIY Property Managers need to be aware of the implications of attending to property maintenance, as well as tenant requests for repairs. Trying to cut maintenance costs or ignoring tenant requests can cost more in the long run. For example, there have been cases where the tenants can lawfully break contract if the conditions of the lease agreement have not been met. This can leave an unexpected vacancy and end up costing you more than the initial cost of maintenance.
Make sure the property is safe and secure
There is no excuse for not providing a rental property that is safe and secure. Failure to provide this can end up costing landlords a lot of money when it results in extended vacancy. But that is not the only hidden snag for DIY Property Management. Because they are actually lawfully required to maintain the rental property in a safe and secure condition on behalf of the tenant, once a complaint is lodged, the matter can become serious. For example, there are many hidden snags for landlords. These include deadlocks on doors, safety screens on windows, child locks on balconies. Pool fence certification, smoke alarms and earth leakage detectors are also critical aspects of the property. These are not just nice to have features. They are all covered by various forms of legislation, and are not worth trying to cut corners on.
As a DIY Property Manager, we recommend that you never try to cut costs when it comes to insurance for a rental property. Landlord insurance costs a little extra. But without it, you can be left with a huge liability. If tenants leave you with a repair bill, then insurance may help you get a property back to a condition to lease. Without it and you are left with an extended vacancy. Then there is the matter of landlord liability insurance. If you don’t know what this is, then we recommend that you check immediately to determine whether you have protection.
Getting the wrong tenant
One of the most critical risks for DIY Property Management is getting the wrong tenant. This problem can involve lots of work - and headaches. Unhappy tenants usually need more repairs, more attention, more communications, and more administration. There is the risk that they will not renew the tenancy. So the consequence is higher vacancy rates. If the rent is too high, the vacancy rate will be higher. Should the maintenance is not kept up to date, there is a risk of complaints being lodged. As a DIY Landlord, there is always a risk of managing an unhappy tenant which can result in an unhappy Landlord!
At Position One, we find the best tenants
Here at Position One Property management, we have a philosophy that we match the correct tenant with the best property. This means that we have a thorough process of getting to know the tenants we look after. That means knowing what their preferences are, and what type of property is best for them. When we have an upcoming vacancy, we put the process of finding a tenant into full swing, before the vacancy even happens. That means we have time to find the perfect tenant for any property, at the right time every time! How many DIY Property Managers can spend the time to get the right tenant? Because we spend the time to get the right tenant, we have a proven record of reduced vacancy, and above average tenant satisfaction.
Happy tenants, happy owners
Here at Positon One, we aim to keep our tenants happy, which is the best way to keep our property owners happy also!
How many doing their own DIY Property Management would like a deal like that?