Tenants

From: Lucinda Hudson


I have 1 IP (which I manage myself) and was lucky enough to inherit a very good tenant. I will be purchasing more IP's but would like to ensure that I get good tenants. I note that not much has been mentioned previously about bad tenants - does anyone have any advice in this area? I have a friend who has a tenant owing over $1500 which is hard to recover and the tenant will not leave the property. I don't want to end up in that situation if I can help it.

Luc
 
Last edited by a moderator:

Sim

Administrator
Reply: 1
From: Sim' Hampel


By using a good professional property manager, you can minimise any impact on bad tenants. Any property manager worth their while will be able to do good background checks and get references for any prospective tenant to hopefully weed out the bad ones.

Once you have found a tenant, a good property manager will have a system for dealing with late rent payments, to prevent things getting out of hand. They will also know how to deal with the tribunal if necessary, and will know your rights and obligations in regard to evicting tenants.

Basically, with a good property manager, and quality property which you maintain well, problem tenants should not be too much of an issue. If you don't think your manager has a good system for screening and dealing with tenants, then sack them !

sim.gif
 
Last edited:
Reply: 1.1
From: J Parker


Lucinda,

I second Sim's very sound advice here. I have managed one of my properties for a short time, but that was only because, like you, the tenant was already in place and was known to be reliable as well.

A good prop manager is worth the money you pay for them, as they should handle all the stressful things for you. Having said that, however, it is vital that you maintain communication with them and try to attend an inspection yearly to keep them on their toes. Good luck!
Cheers, Jacque :)
 
Last edited by a moderator:

Sim

Administrator
Reply: 1.1.1
From: Sim' Hampel


Indeed, Jacque is entirely correct in that you should always verify that your manager is doing their job correctly. I recommend visiting your properties with the manager at least once per year. Obviously when you have 50+ properties the time becomes an issue, but then you should probably be looking at employing your own managers by then perhaps ?

TW wrote an excellent post about managers and tradespeople and such a while back, suggesting that you can get these people to check up on each other, so that you get a better understanding on what is really happening with your properties.

I have also considered sending out survey forms to my tenants asking for their feedback on how well my manager does her job. Need to check the relevant regulations and my management contract to make sure I wouldn't be breaking any rules by doing so.

sim.gif
 
Last edited:
Reply: 1.1.1.1
From: Lucinda Hudson


Thanks for all the info.

Will definitely try a property manager when I get some more IP's.

Luc
 
Last edited by a moderator:
Reply: 1.1.1.1.1
From: Alan Hill


Lucinda,

Personally, if your going to be 'in the game' for a while, I think some self managing experience(at least initially) is invaluable. It certainly helps you make more 'realistic' evaluations of certain Property Managers comments later on!

If you are going to self manage though, here are my couple of tips:

1. Read, read and educate yourself as much as possible on property management BEFORE you start. There are a few good books out there plus read the standard Lease Contract(and understand it!). The standard 'Renting Guide' is also a must. You have to provide it to your tenants, so make sure YOU have fully read it and understand all it covers.

2. DO get Landlord Protection Insurance. For a couple of hundred dollars(tax deductible), if nothing else you will sleep much easier at night.

3. May sound obvious, but DO have a formal written lease in place and DO collect a Bond and lodge it as required. The standard lease will also include a Condition Report and this is vital to minimise problems for you later on in the event of disputes. NB. I had dinner a while back with some people who were telling horror stories about tenants in a property they had....did they have a formal lease, bond, landlord insurance etc? No. Sorry, they have only themselves to blame!

4. Screen your tenants carefully.

5. Check that rental payments have been made promptly. Don't allow habits to start such as paying even a few days late. Get onto it straight away and make it VERY clear that you REQUIRE payment on the agreed date or........

6. ......if problems do occur, be aware of what 'triggers' are in place for issuing an eviction order and the process that must be followed. I'd rather have a problem tenant 'out' and risk a few weeks rental vacancy than have the on-going hassles of a problem tenant.

7. Keep very clear written copies of all your documentation, phone calls etc.

8. Look after your property and tenants. Property Management is a two way street. You require certain behavior from them and you should be professional and prompt in your responses to them.


Good luck!


:)
 
Last edited by a moderator:
W

WebBoard

Guest
Tenants Give up work

Reply: 1.1.1.1.1.1
From: Anonymous


Give up work.
You will need the time to handle such trivials.
 
Last edited by a moderator:
Tenants Give up work

Reply: 1.1.1.1.1.1.1
From: Simon and Julie M


Hi all
I agree with Alan.
If your serious about property investment learn as much as you can about all aspects of the game.
Kind regards
Simon
 
Last edited by a moderator:
W

WebBoard

Guest
Tenants Give up work

Reply: 1.1.1.1.1.1.1.1
From: The Wife


Agree with everyone, you need to at least have some hands on experience with property management, so you know whats involved, and what your managers are telling you is correct or not.

Cheers TW
 
Last edited by a moderator:
Tenants Give up work

Reply: 1.1.1.1.1.1.1.1.1
From: Lucinda Hudson


All good suggestions.

I did read up on the all the relevant legalities with my current tenant, got the landlords handbook, have obtained a bond, have a lease etc. The problem I forsee is that when I get more IPs I will not have the time to deal with the management as I work full time.

However I have found that by managing my current IP I have learned a great deal which has been invaluable and will certainly assist me when looking for future IPs.

Luc
 
Last edited by a moderator:
Top