Who here self manages their investment property to save on agent fees?
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Who here self manages their investment property?
- Thread starter JoshHamish
- Start date
ha ha ha tee hee hee LOL 
$25/Month
$25/Month
ha ha ha tee hee hee LOL
$25/Month
??????
Agents usually charge 5.5-7.7% of the weekly rent.
So, for most of us, that's easily much more than $25/month - indeed, it could be more than $50/week!
I'm happy to outsource the stress of dealing with tenants.
I have enough stress from the strata, which I am chained to until I sell my apartment and buy a house, thank you very much.
Disclaimer: A bad PM will bring you bad tenants and even more stress, so choose carefully.
That was my point. A $25/month management equates to about $4k-$6k rental. I doubt an agent would bother for such a low value rental at least at those %
As a weekly commission it is more realistic for a bottom rung property.
If you read the site, I'm not sure just how much they would do that I do myself, but I acknowledge that many people don't want to manage their IPs. I cannot do the checks but what does "help with the photos" even mean? And if they hold open houses, do the checks and do leases, and that happens each six months (which is possible for some IPs), then I don't see how $25 per month ($300 per year) would come close to covering the staff costs and other overheads required. I guess with most things online this could be done without big overheads. I'm not saying it is a bad thing, but I do it all myself for $0 per month.
I'm sure plenty of people will choose this over paying a PM 5% or 8% of the rent. I'd hate to pay that. I probably would give it a go if I didn't feel confident to do it myself. I'm sure there is a market for it, just as there is a market for fixed price real estate sales agencies.
I was more annoyed for a first poster to be spruiking than the product itself I guess.
I'm sure plenty of people will choose this over paying a PM 5% or 8% of the rent. I'd hate to pay that. I probably would give it a go if I didn't feel confident to do it myself. I'm sure there is a market for it, just as there is a market for fixed price real estate sales agencies.
I was more annoyed for a first poster to be spruiking than the product itself I guess.
My hand is up - I deal with my own tenants and have never had any trouble. But then you can't say I won't have problems in the future. The one time I let an agent get me a tenant, they only gave me the choice of one person, and she ended up being the most demanding tenant I've ever had - although she kept the house neat and paid on time. My tenants seem very happy, they not demanding, pay on time and keep renewing their leases! I do have Landlord's insurance of course.
I didnt think you could get LI if self managing? It used to be like that some years ago but maybe its changed now days.
We've never had trouble getting landlord insurance.
Hi there, i'm pretty sure there is a couple of threads on the same topic.
I use an agent - I like the independence, as once the tenant knows who I am they are generally a pain in the bottom.
An agent fee is deductible and creates protection that your legal lease agreement is written correctly and that all correspondence with the tenant is vetted.
It is difficult to find a good agent - on one property the 'big' companies are awful - I like a personal touch....there are a fantastic selection of PMs from each state on this board.
Without a PM and if there is damage to your property - do you know how to deal with the issue? what if they pay late - what course of action should you take? what if they have a dog and you didn't approve?
If you donot know the answer then a PM is essential.
Cheers, Ivan
Must have just been the Insurance companies I inquired with at the time...was 10-15 year ago.
nor us and I have managed property for over 10 years.
Just a question regarding this self managed IP.
Friend is thinking of self managing his IP. Renting out a room, 5 rooms in total say $120 each room.
1.)Does he need to fill up a spreadsheet for the rent received to be shown to his accountant come EOFY?
2.)If only declares that he is receiving rent from 4 rooms only ($480) but actually getting $600, and in effect, making this a negatively geared property to get the tax deductions. Is this a viable option?
Cheers
Friend is thinking of self managing his IP. Renting out a room, 5 rooms in total say $120 each room.
1.)Does he need to fill up a spreadsheet for the rent received to be shown to his accountant come EOFY?
2.)If only declares that he is receiving rent from 4 rooms only ($480) but actually getting $600, and in effect, making this a negatively geared property to get the tax deductions. Is this a viable option?
Cheers
As long as he doesn't mind risking jail time
Thanks for the warning!
Just a thought that came to his mind. Sorry for asking.
Not having a crack at you (unless you're the 'friend', and even then not really), but the minimal benefit has significant consequences.
