Finding my own tenant

I’m about to put an IP up for rent and still yet to hire a PM.
I’ve found a good tenant who I know will treat the property with respect.
When I hire a PM and I’ve already selected a tenant, are there any fees I won’t have to pay?
Ie. letting fee

 

Why get a PM at all if you are confident you have a good Tennant? You have already done the hard work.

If would rather get a PM then yes, you should not pay letting/advertising fees.

 

I see the value of PMs as making my investment passive and stress free.

Out of curiosity, do you believe a PMs main value is in screening tenants?

 

If you want a middle road, have a look at Cubbi: Common Ground for Property Owners & Tenants | Cubbi. I have been hearing good things.

 

It depends on the PM, other than access to tenancy databases like TICA all they will do is ring the references and screen the best they can based on past tenancy and income.

I'm starting to think the main benefit of a PM is as a barrier between the tenant and yourself if things start going wrong, in terms of managing arrears notices etc

 

They also do all the follow up calls and emails when issues and organise contract out 9f house if things go wrong.
And also told they go to vcat for you if things.go wrong.

 

Pretty much. I need them to place the ad on RE.com, I don't want to have to attend multiple open homes, and I see value in the TICA screen. Once the tennant is in and a proven rent payer I do honestly think their value greatly diminishes.

Not having a go at any hardworking PMs out there, but I am happy to take back management of the property at this point.

 

Can I ask - Do you have LL insurance ?

I have found a strong correlation between self managed property and uninsured risks when I looked at our client data. I ran a report last year (2017) for property with and property without agent costs. 80+% of those without agent fees also lacked LL insurance deductions. For agent managed property it was approx 80% who had LL cover. Sample size of 4000+ properties.

My conclusion : More who self manage also are uninsured for rent default and exposed to tenant defaults. I believe for defaulters its also common to experience damage at same time which often exceeds the bond too. A double whammy.

 

Different PMs have different fee structures George. Finding a tenant is the big one (because of the advertising costs which are hundreds of dollars alone). This is something you will NOT have to pay for.

Ask the PMs you are considering for their fee schedules. Then you can see exactly what you are in for.

 

lol you haven't been hearing them on Twitter....lol no posts in over 2 years?

This said, if you know anyone over there give them a heads up they have a database issue - dean collins on Twitter

 

It is one of the important aspects, you would be surprised, or maybe not as it is logical, but they may already know a lot of tenants & they also prob get things straight from opther PMs or know the PMs who are happy to palm off a bad tenant as a good one....etc