Hi, I’m Heidi Armstrong from State Custodians Mortgage Company. Now if you are a property owner, an owner of an investment property then you face the decision of whether to self manage or engage the services of a rental property management company.
Self manage or engage a professional?
Now, if you do head down that self managed path, there are quite a number of pros and cons that you want to consider. One of the obvious reasons that owners do choose to self manage or become a do it yourself landlord rather than giving it to a professional property manager is basically to cut out the middle man and save you money on property management fees. Put more money into your pocket. And while the benefits seem attractive, the main consideration is whether you have the time, knowledge of relevant regulations and the expertise to effectively manage the property yourself.
Choose your own tenants
Look, as a private landlord you are in a position to screen potential tenants personally. You know, choosing who you believe would best suit your property and its features. This strengthens the likelihood of a good relationship that you would have between yourself and the tenant.
Look, the other consideration is all about geography. You know self managed rental properties, they often only work effectively if you live locally and can be available to the tenant on a fairly regular basis. A remote landlord will not have the advantage of local knowledge of tradespeople or handymen and will be unable to offer a hands on solution to tenants. From the perspective of both the landlord and the tenant, this can be very frustrating and you want someone there for the long term.
Be sure to have a good understanding of your legal obligations
However, you know self management is your choice. You know, so it’ll be good to have, you know be sure to have a good understanding of what your legal obligations are. Draw up a rental property agreement. You know the risk of potential future disputes can be significantly reduced by ensuring there is water tight tenancy agreement. You can get information from the Department of Fair Trading advising you of these obligations under the Privacy Act and the Residential Tenancies Act.
For more information on residential tenancy bonds, just visit my blog at the address shown on the screen – askheidi.com.au. I hope that this has been helpful.
For more information visit www.statecustodians.com.au.