DIY Property Management is not a good idea!
Looking after a property and collecting the rent may seem straightforward and easy. However, to do it well is a highly-involved job.
When purchasing an investment property it's always a good idea to factor in the cost of Property Management (which is tax deductable). It will minimise your stress and responsiblity and gives you professional advice and support when things go wrong.
A good Property Manager will perform the following tasks:
- Open inspections for new tenants - being available when potential tenants want to view the property.
- Access to online real estate portals and knowledge of how to create a compelling advertisment.
- Tenant checks, finding the best tenant with a good record, checking with TICA (the national tenancy database).
- Handling emergency maintenance issues - these can occur in the middle of the night or while your away on holiday's.
- Looking after annual maintenance - having a good team of tradespeople ready to go when you need them
- Excellent record keeping skills - in case something goes wrong and you end up in VCAT (tribunal/magistrates court)
- Have a good understanding the Residential Tenancies Act - incase you do end up in VCAT.
- Ensuring you receive the correct amount of rent - having the correct calculations and when the payments are due.
- Debt collecting experience – in case you have a tenant that doesn’t pay their rent.
- Dealing with the RTBA (Residential Tenancies Bond Authority) - for your bond registration and collection.
- Conducting regular routine inspections (at least every 6 months) - to ensure the property is being looked after. This will require you to have a good eye for detail and a condition report complete with photos.
- Ensuring your property is safe for tenants - e.g installation of smoke alarms, regular gas heater checks to monitor carbon monixide leaks.
- Completing Final Inspections - to ensure your tenants have left the property clean and tidy (without the knowledge of how to do this, it can cost you money).
- Eliminate vacancy - making sure there is little to no vacancy in-between tenants.
- Reducing out of pocket expenses - knowing where to spend money on renovations and updates and having a professional deprection schedule.