Question regarding: Self Management of IP V Manage by agent

[Thi1980]

Hi All,

Thank you for all you help again.

I just settle an IP . Just wondering should I give it to agent to manage or should I be manage myself. What are advantage/disadvantage between the two.

and if i manage myself what are the things as landlord I must do. So far I got to find the tennant, i got to do tenancy agreement . what else do i have to do. Also the rental bond does it legal require to have it or no need rental bond???

thank you for all your help.

Kind regards

Thi1980

 

[Peter_Tersteeg]

Given that you've admitted you don't know what you're doing, I'd strongly advise you to get a property manager. There's any number of points where you can get into a lot of trouble if you don't lodge the right documents in the right way, if you don't follow the right procedure.

Property management doesn't actually cost that much. The cost of screwing up and ending up with a bad tenant and an unfavourable result at tribunal will cost you a lot more.

It might be best to own the IP for a while to get comfortable with just being a landlord. Spend some time further educating yourself, read a bunch of books on the topic, then perhaps give it a shot.

 

[Bats]

Wholeheartedly agree, get a professional to manage your property initially, but look and learn.
With the new Act there are additional legslative requirements , so best left to a professional for now.
Ask lots of questions and learn to 'manage the PM'.

After some time and when you are happy with your knowledge, if still want to self manager - go for it.

For some reason I thought the property was in NSW, hence the reference to the new Act - sorry

 

[Scott No Mates]

Definitely agree, if it is your first IP and you aren't familiar with the requirements of the act, you should engage a property manager to do all the dog work for you. Interview a few different property managers (different companies) and find the one who gives the best feeling (as well as best service levels, do not make your decision solely on price but quality of staff, how long staff have been employed at the agency, number of property managers/no of properties etc).

 

[Sez]

Always start with a property manager - after some time, as others have said, when you know more and are more comfortable with the process take over management yourself. I wouldn't recommend self managing if you don't live locally to the property though.

 

[Jacaranda]

As all previous posts have said - I would get a good Property Manager to do the work. They can access lots of databases to check on prospective tenants that if you self manage you can't do.

I used to self manage. In Brisbane I was able to get an agent to find a tenant then I did the managing - which is great if you have a good tenant. But if they turn bad it is a lot harder and in the long run will cost more.

Also some insurance companies don't like self managed properties for landlord insurance.

Also don't necessarily go with the cheapest commission rate. When I as in the market for an agent I had one offer to drop the commission by 1% if they got to manage all my properties. I didn't want an agent that was interested in the numbers of properties, I want someone that will do the work.

Go with your gut feeling and an agent that thinks the same way you do. Call a few agents up as the landlord but also do a few calls as a potential tenant to see how they treat them.

I friend of mine was renting in Sydney and was told if they kept their rent a month in advance there wouldn't be any inspections!!!

I also learnt a long time ago to "Manage my managers" so I still keep on top of what is going on and now keep a good eye on the tenants and their rent payments. Also I ask a lot of questions and keep my knowledge up on rental matters but am happy for the agent to do the work.

Good luck