The Y-man said:
Y-man,
D1dn'7 kn0w y0u kn3w |337! *
Peter
(*) http://en.wikipedia.org/wiki/Leet & http://home.no.net/hellshl/main/translate.html
First Time To Manage Own Ip
- Thread starter karma76
- Start date
Y-man,
D1dn'7 kn0w y0u kn3w |337! *
Peter
(*) http://en.wikipedia.org/wiki/Leet & http://home.no.net/hellshl/main/translate.html
There's Pros and Cons to both sides...
I have had my IP for approx. 12 months - managed myself - and in that time there have been 2 'issues'.
1. Tenant walking around naked in the front yard (the IP is a back unit), but neighbours saw
2. Tenant flooded the bath-tub, and had to organise a clean up.
Obviously everyone I know has had a chuckle about the first issue, but can you imagine how embarrassing it was to bring up that issue with the tenant...and the headache with having to deal with the cleanup of the 'flood'.
And that's issues I've only had with one tenant for one IP in one year!....imagine if I had 10 like other forumites...or even more....
What I'm getting at it's the 'opportunity cost' of using a PM or doing it yourself. You can save some money, but have to use time to deal with things / or on the other hand, have a PM deal with it, and just pay them for their services.
TIME vs. MONEY
I have had my IP for approx. 12 months - managed myself - and in that time there have been 2 'issues'.
1. Tenant walking around naked in the front yard (the IP is a back unit), but neighbours saw
2. Tenant flooded the bath-tub, and had to organise a clean up.
Obviously everyone I know has had a chuckle about the first issue, but can you imagine how embarrassing it was to bring up that issue with the tenant...and the headache with having to deal with the cleanup of the 'flood'.
And that's issues I've only had with one tenant for one IP in one year!....imagine if I had 10 like other forumites...or even more....
What I'm getting at it's the 'opportunity cost' of using a PM or doing it yourself. You can save some money, but have to use time to deal with things / or on the other hand, have a PM deal with it, and just pay them for their services.
TIME vs. MONEY
warrioress said:
Your thinking is perfectly corrrect...........except you are assuning the PM will do the job he/ she is paid to do,,,,,,,,,,,,,,dont hold your breath..although I am not saying all Pms are useless......they are very efficient at collecting your fees.... If they did there job proerly I would be writing differently.
Currently both PMs I have are excellent or very good...........lucky me.
Lucky is the word..
You have to Manage The Managers (PM's) as its all great until things go pear shaped then they all duck for cover..
We've been lucky as well (though not sure if it's due to good tenants or PM's) maybe a lot comes down to "good tenant selection"?
Redwing
PS-
Does anyone have a basic bullet point step-by-step process to renting out an IP including tips?
Maybe Duncan has some suggestions here (from memory he self managesall IP's?)
You have to Manage The Managers (PM's) as its all great until things go pear shaped then they all duck for cover..
We've been lucky as well (though not sure if it's due to good tenants or PM's) maybe a lot comes down to "good tenant selection"?
Redwing
PS-
Does anyone have a basic bullet point step-by-step process to renting out an IP including tips?
Maybe Duncan has some suggestions here (from memory he self managesall IP's?)
My observation is the owners of the agencies are competent and hard working.redwing said:
It tends to be the underlings which let the management go wry, but this is just a generalization.....though the word lucky is probably the deceeding factor.
It would be interseting to make a poll but I have to go.
My apologies but I am typing wothout my glasses.
I manage 12 lots of tenants myself as they are close to home (inner Sydney and North shore). Those that are further away I have managed by one of the local real estate agencies. I find managing my own properties really rewarding. I have a good relationship with all my tenants and find that they really appreciate having a decent landlord. This has resulted in some of them making improvements to the properties, doing their own handyman work and even making landscape gardening improvements all at their own expense. I'm sure this wouldn't happen if the tenants had a 'faceless' and useless property manager to deal with. I understand why some people hate the thought of managing their own properties but it has genuinely been a great experience for me.
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Hi Karma76,
I've found having a list of good tradespeople on hand is really helpful. I have a great handyman, electrician, plumber and locksmith. I keep their numbers in my mobile phone. If a tenant calls me and needs anything I can call the appropriate tradesperson immediately. I let the tradesperson know that I want them to go and investigate the problem and call me back with a quote. If I'm happy with the quote I get them to complete the job immediately. I give them the tenants number to call to arrange access. I have been doing this for a while now and only use tradespeople who are good at their jobs, reasonably priced (they dont have to be the cheapest) and have a strong commitment to customer service. They normally call my tenants within 30 mins (I request this). My tenants love this fast service. They know I understand their situation and am on to it straight away. All I've done is made a call to a tradesperson, which is exactly what a property manager would do. The difference is that I'm sympathetic and have them talking to someone who can fix their problem within 30 mins. It makes a big difference to tenants.
Hope it helps.
Kelly
I've found having a list of good tradespeople on hand is really helpful. I have a great handyman, electrician, plumber and locksmith. I keep their numbers in my mobile phone. If a tenant calls me and needs anything I can call the appropriate tradesperson immediately. I let the tradesperson know that I want them to go and investigate the problem and call me back with a quote. If I'm happy with the quote I get them to complete the job immediately. I give them the tenants number to call to arrange access. I have been doing this for a while now and only use tradespeople who are good at their jobs, reasonably priced (they dont have to be the cheapest) and have a strong commitment to customer service. They normally call my tenants within 30 mins (I request this). My tenants love this fast service. They know I understand their situation and am on to it straight away. All I've done is made a call to a tradesperson, which is exactly what a property manager would do. The difference is that I'm sympathetic and have them talking to someone who can fix their problem within 30 mins. It makes a big difference to tenants.
Hope it helps.
Kelly
In Brisbane managing our own IPs, we use Saturday's Courier Mail. If you run the ad on Wednesday plus Saturday (or Saturday plus Wednesday depending on the timing), you get a discount.
We don't bother with the "local" hand delivered paper and the couple of times we have used an internet "go-between" have never done any good. Have also given the listing to local real estate agents and exclusively rental agencies, also a waste of time.
Good old Courier Mail is the best bet in my opinion.
Good luck, Wylie.
We don't bother with the "local" hand delivered paper and the couple of times we have used an internet "go-between" have never done any good. Have also given the listing to local real estate agents and exclusively rental agencies, also a waste of time.
Good old Courier Mail is the best bet in my opinion.
Good luck, Wylie.
No PM options?
http://www.poaa.asn.au/
Thanks Gooram!
Followed the links and have come across CentrePay by Centrelink. Any tenant in receipt of Centrelink payments can have rent deducted straight from their payment before they get it. This might interest those self managing.
http://www.centrelink.gov.au/intern...87000d7f37!OpenDocument&Highlight=2,centrepay
Some areas also have a community rental association which receives government funding. They take the lease, rent government guaranteed, and sub-lease to clients at subsidised rate. No bond but contract covers expense of any repairs/damage caused by tenant. They can also assist with organising tradespersons etc. This would negate the need for a PM.
http://www.poaa.asn.au/
Thanks Gooram!
Followed the links and have come across CentrePay by Centrelink. Any tenant in receipt of Centrelink payments can have rent deducted straight from their payment before they get it. This might interest those self managing.
http://www.centrelink.gov.au/intern...87000d7f37!OpenDocument&Highlight=2,centrepay
Some areas also have a community rental association which receives government funding. They take the lease, rent government guaranteed, and sub-lease to clients at subsidised rate. No bond but contract covers expense of any repairs/damage caused by tenant. They can also assist with organising tradespersons etc. This would negate the need for a PM.
Thanks Wylie.
I think I'll take your suggestion. We presently manage our one and only IP in country QLD but have had the same really good tennants for three years. Our new 2nd IP is in Brisbane and is brand new, so maintenance shouldn't be a problem.
I think we can do just as good a job as a PM plus save ourself $100 a month (before tax of course).
I think I'll take your suggestion. We presently manage our one and only IP in country QLD but have had the same really good tennants for three years. Our new 2nd IP is in Brisbane and is brand new, so maintenance shouldn't be a problem.
I think we can do just as good a job as a PM plus save ourself $100 a month (before tax of course).
The key to managing properties for anyone but especially beginners is DD - careful tenant selection. That eliminates most of the problems straight away like arrears, unreasonable demands, damage, etc. Good people just don't do that, but the trick is to sort the wheat from the chaff.
If you don't have the knowledge and experience to handle your average tenant, they will tend to handle you until you wise up.
Don't hesitate to take the whole thing to a property manager if you get overwhelmed though, they can always tidy it up for you for a fee, and even hand it back to you afterwards if you want to continue self-managing.
I would recommend self-managing for anyone wanting to build a property portfolio, provided they don't mind being a student in the school of hard knocks, and use the Forum - it's got to be the best help anyone can get.
good luck
crest133
If you don't have the knowledge and experience to handle your average tenant, they will tend to handle you until you wise up.
Don't hesitate to take the whole thing to a property manager if you get overwhelmed though, they can always tidy it up for you for a fee, and even hand it back to you afterwards if you want to continue self-managing.
I would recommend self-managing for anyone wanting to build a property portfolio, provided they don't mind being a student in the school of hard knocks, and use the Forum - it's got to be the best help anyone can get.
good luck
crest133
Hi Millsy,
DD is 'Due Dilligence' or investigating and evaluating risks. Crest133 is advising people to do their research.
In regards to tenant selection, I have paid an agent to find tenants for me. I have the final choice in who gets the property. I do this when I don't have much time or I simply can't be bothered. The agent charges me one weeks rent for this and from then on I manage the tenancy. I've done this 4 times and in each case the tenants have stayed for over 2 years. Honestly property management is not difficult. You get the tenants to pay the rent straight into your bank account (monthly in advance if possible). You then check your bank account once a month to ensure the rent has been paid. Easy!
All the best
Kelly
DD is 'Due Dilligence' or investigating and evaluating risks. Crest133 is advising people to do their research.
In regards to tenant selection, I have paid an agent to find tenants for me. I have the final choice in who gets the property. I do this when I don't have much time or I simply can't be bothered. The agent charges me one weeks rent for this and from then on I manage the tenancy. I've done this 4 times and in each case the tenants have stayed for over 2 years. Honestly property management is not difficult. You get the tenants to pay the rent straight into your bank account (monthly in advance if possible). You then check your bank account once a month to ensure the rent has been paid. Easy!
All the best
Kelly
I'm having a look at this company at the moment for rent payments for a tenant
http://www.ezidebit.com.au/whatis.aspx
http://www.ezidebit.com.au/whatis.aspx
