Considering Self Management

[HomeBuyAU]

I'm considering Self Management of my property, It I a strata apartment. I have used agents since I brought it 5 years ago but the only thing they have done is got the tenant in and since then very little besides an occasional inspection. I hanged to the current agent about 2 years ago. The tenants have been in there since then and never miss the rent. The only thing I'm worried about is if I stop using the agent then they might entice the tenants to move to one of their other properties since they were there customers before I signed up with them.

I have had a few issues with these agents as well lately as you can see in my other thread here. I can save nearly $100 a month if I get rid of them and manage it myself. I don't have Mortgage insurance anymore so if I did take it on myself would I need to have this? If so it might not be worth it.

Do others find managing themselves better?

 

[Brady]

Will you be able to do an occasional inspection?

Will your tenants behave in the same manner with a professional property manager looking after the property, compared to someone self managing the property?

Are you up to date with the tenancy laws in your state?

Has your current property manager been actively increasing the rental each year? Could you achieve the same increase?

What does mortgage insurance have to do with the management of the property? Are you referring to landlord insurance? I would strongly recommend having this insurer in place.

 

[Kinnon Bell]

I have never self managed. I find a good (and focus on the word 'good') property manager to be like an insurance policy. You pay a premium every month which sometimes feels like it's for nothing until the proverbial hits the fan and you need to make a 'claim' and then you're glad you've had the insurance in place.

I don't have the time, nor the inclination, to learn the intricacies of the tenancy laws for each state where I have or will hold properties so to me it makes sense to outsource that business for a small % of income to someone who is an expert in their field. I am also not located within driving distance of my properties either.

Sounds like you've just had a bit of bad luck with your existing PM's and need to find decent ones.

What do you mean by 'mortgage insurance'?

 

[Xenia IM]

I think it's a good idea to take back control if you are not happy with others doing it - and you have not been happy!

Continuing a bad situation only sets others up for failure as they may not be able to meet your expectations.

Well done for the descision to self manage!

 

[thatbum]

Are you up to date with the tenancy laws in your state?

This.

Everyone thinks they can do a better job than their PM, until something goes wrong and they don't have the first clue about what to do.

By the way, I'm not suggesting its a bad idea - I self manage some of my own. My point is that you should start learning about the laws, forms and procedures asap when you do.

 

[Brits]

Apart from the obvious savings in not using a property manager I find that tenants and potential tenants really like dealing with the owner as manager.
I have four lots of tenants who because I have always shown respect and fairness in all matters show me exactly the same. They never complain about unnecessary things and are considerate and reasonable in any requests they make. There is an attitude of trust between us and it is very professional and business like.
Admittedly I do have very good tenants but there again I picked them. I strongly believe you can judge a person's measure by looking them in the eye. When they see you are a fair and reasonable person and you can see that in them it certainly sets a very good business relationship. Can a dolly bird PM do this for you? I doubt it.

 

[balwoges]

I would never self manage residential housing, it can be a minefield unless you know what you are doing, [speaking from experience in the field for years in Sydney]

 

[HomeBuyAU]

thanks for the feedback, I will have to think about it all. I meant "Landlord Insurance" not mortgage .

I might hold on a bit as I just requested a rent increase with the PM who has been reluctant and never increased the rent over the 2 years they managed it as it has been very high compared to everyone else. I might wait until I get some more properties again soon and then take on them all myself then. I would enjoy just traveling around to my properties regularly as a handyman/manager.

 

[perthguy]

By the way, I'm not suggesting its a bad idea - I self manage some of my own. My point is that you should start learning about the laws, forms and procedures asap when you do.

I self manage two properties and I would add to this: know your lease conditions and don't be afraid to issue a written breach notice if your tenant breaches their lease.

In my experience, a tenant can be "nice" and look after a place ok until it is time to leave. Then when they leave the place damaged and in a mess, and you didn't issue legitimate written breach notices, there could be an issue if you wind up in the tribunal. You would think if your tenant left your house uninhabitable that they would not take you to the tribunal to claim their bond back. Not true in my experience.

Regular inspections are a must and you should keep a record of the inspections. Assume for each tenant that they will claim their entire bond back even if they damage your property and keep records accordingly.

 

[perthguy]

I should add that it's not all downsides though. The good thing about self managing is being able to fix problems quickly. Examples: tenant in Melbourne called that the toilet was blocked and I had the issue resolved by close of business. Tenant's father in Perth called at 9pm on a Friday night that the hot water heater wasn't working and I fixed that within half an hour. I doubt you would get that kind of service with a PM.

I like to be responsive to request for maintenance for a reason and I love my Perth tenants because they report every little fault immediately. There is a good reason for this. For example, in the Perth house, the tenants notified me of water pooling under the vanity in the bathroom. It took a bit of time and a couple of goes to troubleshoot but I found out that water was leaking from the shower taps to the inside of a stud wall. If not reported, the wooden studs would probably have rotted out and caused a very expensive repair bill in the future. By resolving the issue early, I have saved myself money and a lot of hassle in the future.