DIY Tenancy Agreement (QLD)

[Jonny G]

Hi All,

Just seeing who out there has had any good/bad advice about DIY Tenancy Agreements.

I have a newly renovated unit ready to rent out to a mate. He and I both agree that it's importnt to keep everything above board, but without a cash donation to a Real Estate Agent----No offence to Agents----

I have found a website that sells these agreements for $40

http://www.rpemery.com/shop/lsviewproduct.asp?productid=201&categoryid=2

Thoughts anyone?????

Cheers-----Jonny G-----

 

[Raddles]

HI there
why not look at the Residential Tenancies website
http://www.rta.qld.gov.au/
a lot of the forms you will require are available for free on the website
thanks

 

[wylie]

I agree with Raddles. We self-manage our IPs and I type the information straight into the form and print it.

I never have to buy any forms. The RTA website has everything you need, and are really helpful if you need to call them.

 

[Perp]

Managing your own properties certainly can work out OK, and there are people who do it and have no troubles.

But I don't think it's worth the risk and wouldn't contemplate it. I think a good property manager is worth far more than they cost. And particularly if your tenant is going to be a mate, I'd be having a PM in the middle, so they can go in and be the hard-nosed business person with your mate if necessary. Or even better - don't rent to your mate.

For the 90% of time that everything's smooth, yes, it may seem like "money for nothing"; the other 10% of the time, you'll be extremely grateful that you were wise enough to pay them the 90% of the time they were doing "nothing"!

 

[Xenia]

I agree with Oz! There is a huge difference between an INVESTOR and a landlord and you have the choice to be either one. I know that I choose to be an investor and leverage my money and time! Tenancy legislation is very complex leave it up to someone who is an expert in the area.

I own a management agency and teach property management but I still leave the management of my own properties up to our office, I never get involved as it is simply not worth my time!

 

[Billy_Bokkie]

"I have a newly renovated unit ready to rent out to a mate. He and I both agree that it's important to keep everything above board, but without a cash donation to a Real Estate Agent----No offence to Agents----"

Hi Jonny,

I am a huge fan of self managing IP's as we have several ourselves. The level of service you receive from some PM's is absolutely woeful and you spend good money after bad trying to find a PM worth their coin!

In saying that, you need to be proactive in the self management process i.e. inspections, rent due, maintenance etc. As Raddles has mentioned, the RTA website has all the forms and information you would ever require and its all free - so I would never pay for any of these forms.

I have grave reservations about lending to a mate, family or friend-of-a-friend, as it is often more difficult to make impartial decisions regarding such things as rental increase, maintenance required, and anything business/financially related. Although you may find a secure tenant in a friend, sometimes friendships can be tested/lost when you need to increase the rent to cover market costs. Although its a business transaction, its also emotionally charged and fraught with complications.

However, if you engage a neutral tenant then there is no emotional relationship and guilt-free - which is how a business relationship should be based. Just my thoughts.

Kind Regards,

Billy

 

[yo yo ma]

I have grave reservations about lending to a mate, family or friend-of-a-friend, as it is often more difficult to make impartial decisions regarding such things as rental increase, maintenance required, and anything business/financially related. Although you may find a secure tenant in a friend, sometimes friendships can be tested/lost when you need to increase the rent to cover market costs. Although its a business transaction, its also emotionally charged and fraught with complications.

However, if you engage a neutral tenant then there is no emotional relationship and guilt-free - which is how a business relationship should be based. Just my thoughts.

Some really good points here... Jonny, if you are going to rent to your mate, negotiate a rent increase before he moves in, otherwise, you may have to sacrifice a friendship if you need to put the rent up due to increasing costs.

 

[alexlee]

It's not so much the self-management part but the fact that you're renting to a mate. Even if it's written in black and white that 'if this happens then the tenant will do this', what do you do if your mate doesnt? Do you wave the agreement and say 'you WILL do this or I keep your bond?'

I personally wouldn't rent to anyone I know.
Alex

 

[jaycee]

Yeah a lot of pple succesfully self manage and I ahve had to manage the mnager fro each rent increase (each contact saw them jump out of their seat & immeidately suggest I do this & this & this & this to seem really proactiv after not doing anything for way way too long)

I just sent them a reminder email asking if they could plese reply to my 21st January email about my Llord's insurance - it is still current right ? SHe replied and said yes it's current & due for renewal in MArch, at whch time she suggeted I increase from the current package to the "ultra" package providing me with a url to view the policy on (mistyped url didn;t work, but I found it). I replied tellng her ethat there were no details, but as she obviously knew the details (or would not suggest them - right?!), could she explain it to me, it was double the price after all.. she told me it covered extras up to $50k for things like carpet etc... Haven;t been back to work since Friday to see what her reply to my next email was. (My email asked her aren't those things covered in another policy which is also paid through the rent by the PM agency ?!) The first pm I had was the same, then they merged or sold the business to this larger frim (very porfessional setup and national company etc, but so far, nothing different.

AS you can see form posts here, there are problem tenants, and sometimes PM's help, sometimes, they don't, sometimes they can't.

Xenia, your time is probably an issue, you can probalby make more money concentrating on what you do, so it;s worth paying for that - a friend pays a cleaner for his business cause he doesn;t have ime to sweat over that, but if I was starting my own little thing, he suggested I do things myself as long as I can.

Being fully aware of what you are getting into of course, makes perfect sense.

 

[geoffw]

A good PM can be excellent. I would be agreeing with others that getting a good property manager is gold.

However, there are some very bad PMs out there. And it's not constant.

I had the PM from hell. I self managed for a few years- but then I came to the point where I could not address problems quickly.

I engaged a PM again. At the same agency as before- but a new PM.

The previous PM had been kicked out in disgrace.

The new one has been fantastic, and well worth the money.

 

[Jonny G]

Hay guys,

Thankyou to all those who responded. Fortunately i had set pretty clear requirements prior to lease, which were all agreed to and signed, including a rate increase at the end of the 6 month lease (lease agreed mutally).

My expectation is that hopefully all is well, being my first venture into this kind of thing. Most of your replies suggest I don't "hope" anything, and manage rather than X fingers, so I gladly welcome all your advice and go forward in the knowledge that next time i will be much wiser.

Very much appreciate all the advice.