PM short course - Pm's r just too expensive in WA

I'm thinking maybe in the future I might do a PM short course at TAFE. You can study 2 nights a week. PM's are just so expensive in WA. If I didn't have to pay a PM my Perth ip would be neutrally geared & I'd be able to invest sooner. Currently I'm out of pocket around $70 per fortnight after tax and that's with the low interest rates. It's not too bad but you need to take into account I'm a low/average income earner.

Loan is $199
Renting for $290 per week

I'm worried though it would be stressful to manage my property. I'm thinking maybe mum and I can do it together & learn together.

I actually am thinking of changing pm's as well. I'm being charged approx $170 per month.



http://www.central.wa.edu.au/Courses/BusinessLegal/Pages/FPS002.aspx?cookieCheck=true
 
I think that in WA you need someone with a full REA license to do it with you can't set up shop by yourself with just PM qualifications.

What percentage are you being charged by your PM? 8.5% is pretty standard in WA especially if you only have one.
 
I'm thinking maybe in the future I might do a PM short course at TAFE. You can study 2 nights a week. PM's are just so expensive in WA. If I didn't have to pay a PM my Perth ip would be neutrally geared & I'd be able to invest sooner. Currently I'm out of pocket around $70 per fortnight after tax and that's with the low interest rates. It's not too bad but you need to take into account I'm a low/average income earner.

Loan is $199
Renting for $290 per week

I'm worried though it would be stressful to manage my property. I'm thinking maybe mum and I can do it together & learn together.

I actually am thinking of changing pm's as well. I'm being charged approx $170 per month.



http://www.central.wa.edu.au/Courses/BusinessLegal/Pages/FPS002.aspx?cookieCheck=true

$170 per month at $290 per week rent, all inclusive seems cheap

$15,080 rent per annum

$2,040 Management Fees per annum, including inspections etc
 
I think Alex is talking about managing her own IP's with the help of her mum. You don't need TO do the course To manage your own IP's. Docep have all the info you need on their website. They have also been holding some short info nights also to go over the changes. If you go to Docep site it is all pretty straight forward. Has your current PM been over your property to see if it complies with the current rules effective with a new lease after July 1 2013. Might as well get them to do that first! You won't be able to take over managing until your contract runs out with PM- you may have TO give them a months notice, etc also. It helps to be a good judge of character, just treat it like a job interview, check their references, it's quite easy.
 
$170 per month at $290 per week rent, all inclusive seems cheap

$15,080 rent per annum

$2,040 Management Fees per annum, including inspections etc
If you had two properties x $2000 over 5 years you'd have an extra $20,000 for about 20 hours of work.
 
$170 per month at $290 per week rent, all inclusive seems cheap

This equates to 13.5% which seems high. However, if they are getting you maximum market rent and zero vacancy between lets then it might be okay (but I doubt this is the case).

It doesn't hurt to learn how to self manage (it is not hard) and you don't need to do any course at TAFE. The tricky bits are the start and end of a lease, but until you start actually doing it and the paperwork you will never know how easy (or hard) it is.

In WA all the templates and forms are on the DOCEP website. Use these as necessary but be sure to add in a few clauses of your own providing they don't contravene the Act.

Also, have LL insurance and make sure you actually do tenant checks once you do have applicant(s).

Also, be courteous and professional but don't ever try to be a tenant's friend.
 
I've learnt it myself and have been the court to kick previous tenants out.

It can be stress free if you read what you need to do and have a checklist of what needs doing.

You don't need to get emotions involved it's all just filling out, signing, posting things within the required dates.

Do treat it as a business, be nice to your client but it's not advisable to be a friend.

I found everything I needed on the commerce website.

http://www.commerce.wa.gov.au/consumerprotection/Content/Property_renting/Renting/NewRTALaws.html
 
Definitely doable if you have the time and energy. I have self managed an IP in the past with several different tenants and never had an issue and never one late rent payment.

This pdf from Dept. of Commerce will be enough to get you started;

http://www.commerce.wa.gov.au/consumerprotection/PDF/Publications/LessorsGuide.pdf

+1 for the WA Consumer Protection website. Now its easier than ever with the standard leases and prescribed forms all on one page.

Also, I'm happy to answer any queries on the trickier points of the WA RTA where I can.
 
Thanks for all the replies! Some good points bought up.

Yeah maybe 13.5% is a little high for Perth. It's all inclusive though. Hmmm I think I remember a company that charge 10% (includes everything). I'll search ss for the name again. I found the thread the other week.

Atm I think I will stay with this mob until I buy my next ip in 2015. I'll then move all of my properties over to a new pm.

I'll check out docep too & start learning about pm. I need to start organising/keeping better records if I ever want to go down the track of self managing in the future.
 
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Wow. 13.5%. That's expensive by eastern coast standards.

Does all inclusive mean letting fees, advertising for new tenant, maintenance, goon to tribunal?
 
Geoff, does your PM send in some 7' 3" 400 pound bikie to the tribunal on your behalf ??

Haha. Fat thumbs.

There's probably a few from Queensland looking for alternative employment. Perhaps the shopping centre could use a few?
 
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