Changing to independent PM (like self-managed)

[blueskymine]

Hi

I have been disappointed with PM, the last one asking regularly if I am happy, but when I asked for something reasonable, I get no reply (I asked a few times).
Therefore, so far, it looks like they getting PM fees from a tenanted IP with nice tenant paying 1 month in advance.
It looks like to get an answer to my query I need to get it directly from the tenant!
Therefore, leaving about 2-2.5 hours away from the property, I thought that they surely are businesses that only look after the minimum just like quarterly or so inspection etc, not acting as PM, and then if the IP gets vacant, hiring a PM just to look after the transition.

But I find nobody to do this job, looking online. RPIA and Landlords Specialists seem to be one and do not service in Central Coast.

I would like to know if one must have a licence to inspect quarterly, and if not if some forumers here have found some sort of arrangement with non-PMs to have the inspections or what are the suggestions.
Frankly speaking, if the tenant is good and intend to stay, I rather not pay the PM, not increase the tenant rent but actually add value to the property etc or landscape.

Thank you for your replies
BSM

 

[kathryn d]

Sorry, I can't help you.


I always find it odd, that any inspection is required during a tenancy.

We only do this, when we think the tenant is doing something illegal, or has skipped.
We are at our properties during maintenance and repairs, so I guess we see the condition then.

 

[wylie]

We also don't do inspections but, like Kathryn, we get to see the houses if there are any maintenance or repairs needed, so we get an idea of how the tenant is living and keeping the place. We also live nearby, so drive past them on a regular basis to and from local places.

 

[blueskymine]

I am some hours drive from the property... so I can't do this.

 

[Jody in Darwin]

Hi BSM,

To answer your original question, I would think that whoever did inspections for money without being licensed would be on shaky ground. We are not allowed to send employees out to do inspections unless they are registered agents and we, as registered agents, are not allowed to charge for our service (i.e. hold ourselves out as agents) unless we have, or work under someone who has a real estate agent's licence. Having a licence means that there is a regulatory framework in place that assures that we have appropriate insurance and that all trust accounts are audited and reports submitted to the licencing board every year.

As for getting inspections done. They are an absolute must! I agree that many licensed agents are really not that good at inspections (or various other aspects of the job) but it is important that they are done and done properly. Things like fans, filters, shower cubicles, under sinks, ceilings need to be checked regularly for a few reasons.

1) Often tenants will miss things that require maintenance and if someone who knows what to look for checks regularly, you can potentially save a lot of money with preventative maintenance rather than cleaning up after the fact. i.e. slow leaks from waste pipes under sinks, roof leaks appearing as stains on ceilings (people rarely look up at the ceiling until something is horrifically obvious)

2) Many, many people will not bother to clean or will be 'too busy' to clean if they know they aren't going to be checked. Sometimes even really nice people with professional jobs, who do small maintenance for you and pay the rent on time won't clean. It's not malicious, it's human nature and doing inspections covers this potential danger. Not cleaning regularly can damage some things: soap scum can become etched into shower screen glass, mould left in shower grout long enough can start eating away at the grout, A/C filters not cleaned regularly can shorten the life of your A/Cs etc.

3) If you have landlord insurance - it is very unlikely to cover damage done by tenants not living in a clean and tidy manner. This is a gap in your insurance and you cover it by doing inspections.

Good luck,
Jody

 

[blueskymine]

Hi Jody

Thank you very much for your reply.
It shows that you are a good PM. In Sydney, a lot are paid for doing inspection every 3 or 6 months, but they don't, so I don't know what sort of report they give to the principal (owner) and if they do the inspection (once in a blue moon), it may be a 30 seconds one.

Your reply underlines the importance of inspection and proper inspection for various reasons. And we understand that if not done by the landlord, it must be done by insured registered PM.

Thanks Jody
BSM

 

[Jody in Darwin]

You're welcome