Amateur landlords

[Amadio]

If there is one thing which is a real surprise to read on these forums it's the number of really daft questions from owners who choose to self manage. Sometimes they seem to be unaware that there are such entities as tenancy boards.

It's hard to believe that they are so casual towards a very valuable asset.

Has it always been like this in Australia?

My experience is from the USA where it's more likely to self manage than hire a PM, but I never met any owner there who didn't have a dog-eared copy of every rule and regulation on his/her desk.

 

[Ausprop]

perhaps because as a LL you have such little control over the asset that they almost feel as though it doesn't matter what they do? EOD all you can do is stick someone in there who is hopefully decent enough to (a) pay the rent and (b) not wreck the joint

 

[tom32]

People here can probably enlighten me further on this but my suspicion is as follows:

In Australia we have a land tax system which favors "mum and dad" investors. If you took them out of the mix yields would have to be much higher to justify investment after considering land tax. In most states land tax is generous if you only own one or two investment properties and really kicks in if you have a land component getting up to the million dollar mark.

This would I suspect mean that it is going to favor lots of small investors over institutional or large investors.

Of course a person who owns a single property or maybe two is not going to invest the same level of time into getting up on all the info as a person who owns vast swathes of residential property on average.

 

[kathryn d]

Amadio,
I don't find the questions from new landlords daft.
I really find landlords that have hired a PM and still seem to have so many issues hard to understand.
From what we are lead to believe, by hiring a PM, your property is in the hands of qualified and professional people.
They are supposed to have the ability to pick the very best tenant for you, with their amazing screening process.Able to get tenants who know how to behave and pay their rent on time, every time.

They don't seem to do any better job..and are just the middle man.

 

[chilliblue]

If there is one thing which is a real surprise to read on these forums it's the number of really daft questions from owners who choose to self manage. Sometimes they seem to be unaware that there are such entities as tenancy boards.

It's hard to believe that they are so casual towards a very valuable asset.

Has it always been like this in Australia?

My experience is from the USA where it's more likely to self manage than hire a PM, but I never met any owner there who didn't have a dog-eared copy of every rule and regulation on his/her desk.

I think it is great that they have access to a forum such as this whererin they are learning. Not all PM's are as well informed as some private landlords.

 

[rugrat]

I think the thing is that people need to learn somewhere. I am often amazed at some of the seemingly simple questions asked sometimes too, however, if they honestly don't know the answer, then they definitely need to be asking them. I would much rather a clueless LL trying to find the right answers then some of the self-righteous LL's I have met who don't want to know the rules, but choose just to do things their way regardless.

People should educate themselves before investing, however considering that many investors actually become so by accident, at least they are trying to rectify their ignorance. The problem with ignorance though, is that often the person in question doesn't know enough to even begin to ask the right questions.

PM's are no different to alot of private LL's. Many know the rules, many do not. I am a big beleiver that the best teacher is often experience.

 

[Amadio]

I think the thing is that people need to learn somewhere.

Yes, however, surely the place to start is with the law and regulations rather than a forum where one gets many opinions and still has to sort out the facts. It's not as if the law is hard to find.

Your point that learning is best done by experience is mostly valid - until there are tenants who know the regulations inside out and a landlord who knows diddlysquat because s/he doesn't realise that landlording is a business.

 

[travelbug]

OK so I should have read the regulation book before I looked at buying an investment property? OOPS!!

Maybe we should have a poll. Who has read every regulation pertaining to renting? AND has a dog eared copy at their disposal.

 

[INVSTOR]

I've self managed in Perth for (1) Property - 7 years, and a (2) property for 5 years. I've got a manager for a property in Bris who I have to beg to get a copy of current lease - for past 4 yrs, and another property in Bris who hasn't responded to my phone calls and emails in months. Give me self-maneagement any day!! At least I know who I'm dealing with, and they are usually 100%, top tenants.

 

[AlmostBob]

Maybe we should have a poll. Who has read every regulation pertaining to renting? AND has a dog eared copy at their disposal.

I do
+enu =10

 

[cmason]

I've self managed in Perth for (1) Property - 7 years, and a (2) property for 5 years. I've got a manager for a property in Bris who I have to beg to get a copy of current lease - for past 4 yrs, and another property in Bris who hasn't responded to my phone calls and emails in months. Give me self-maneagement any day!! At least I know who I'm dealing with, and they are usually 100%, top tenants.

same. Have self managed my Melbourne one for almost 10 years without a lot of issue current tenant has been there for 5 and rarely hear from her and see the money come into my account every week.

Where as I have a PM for my Tassie one who I asked 4 weeks ago to chase up 3 quotes to paint the eves of the property, received one quote this week after following up and yet to receive the other 2 and I pay them 8%

If I could self manage all IP's I would

 

[RumpledElf]

What's wrong with being an amateur accidental landlord? If cheap houses were easier to sell I wouldn't be in this position ...

All the stuff you need to know is easy to find out.