Landlords can save money by self-managing their rental property. But if they get it wrong, it can turn out to be a costly disaster. They may not have the necessary knowledge to exercise state and national regulations, which can also turn into a mess.
Here are just some of the common problems DIY landlords encounter if they’re not careful.
A happy tenant is one who is appreciated and listened to. They like when their maintenance requests are taken seriously and acted on swiftly. DIY landlords who are time-strapped might not follow up on maintenance needs as quickly as a professional property manager does. They could also fall into trouble if they contract an unlicensed or uninsured repairer in return for a cheaper quote. Don’t do it. Safety and warranty periods could be compromised.
Being ripped off
A savvy landlord is one who pays attention to the current rental market. They know what the standard rate is for similar investment properties in the suburb. This allows them to set a competitive rental rate for their own property. Not knowing current prices means DIY landlords could easily be charging less than they should be getting. They may even lose out if they fail to raise their weekly rent as trends increase.
It’s imperative to address late rent as soon as possible and have a procedure outlined in the tenancy agreement. This signifies that a landlord has a zero tolerance policy for rent in arrears. Failing to chase late rent fast only sets an example to your tenant that it is okay, which may encourage them to pay late again and begin a cycle.
Sometimes DIY landlords sign up a bad tenant that a professional property manager could have easily detected. They’re experienced so know the telltale signs of high-risk tenants who turn out to pay late rent, damage the property or not pay at all.
If you’re thinking about self-managing your rental property, ask yourself if you have the time, resources and knowledge to do a sufficient job. If not, it could be worth it in the long run to get support.
Contact K.G. Hurst today if you need assistance with managing your Sydney investment property. We’re experienced and are here to help.