Should you manage your investment property?

While managing your investment property can seem like a simple way to collect more of the rental income pay towards to the mortgage, there’s a little more to it than making sure the house is standing and receiving the money.

Managing your investment property might appears pretty straightforward as you find a tenant, they pay the rent, and you keep your eye closed and collect rent. It’s cheapest and may suit someone with the know-how and available time necessary to sustain a financially viable real estate asset.

If you have a reliable tenant willing to pay market rates and you know how to protect your right as landlord and your tenant’s right in the event of a mishap, chances are your investment will run smoothly. However, there are some crucial factors to consider before choosing to be a DIY property manager.

First, there is much legislation in place to protect both tenants and landlords. If you don’t have the means to become familiar with the law, running the books on your own might not turn out well.

The legislation is very grey. A professional property manager will have the experience and knowledge to guide their client as to each case and what the likely and fair outcome should be.

DIY property managers also need to research tenant background, manage lease agreements, rental payment authority, bond lodgement forms and property inspection reports. In the case that something has gone wrong, the correct implementation of these documents could be the difference between a win or loss at the relevant tenancy tribunal.

Property managers also market the premises to ensure that you get a reasonable price, and the property may be more appealing just because renters know they will be dealing with the professional rather than an owner.

While self-managing is right for some, having a professional, trustworthy manager available to hander inquiries, damage or broken lease can pay off for other owners. It all comes down to whether or not you can commit the time and effort needed to ensure all your investment needs are met, as well as the rights of your leasing tenant.

Come and speak to Kevin Poh on 0415820016 about how to finance an investment property purchase.