When you are managing your property by yourself, where to find idea, comments?

Do you think you are better at PMing than a professional? I know its easy to say things like "oh well my PM didn't get back to me or get the best quote for maintenance" - but that's like saying you're better than a doctor because you can put on bandaids really good.

For all the criticisms I sometimes make of the PM industry, I at least appreciate how tough a job it is, especially the parts where things get tricky and tribunals and court orders get involved.

I would be very, very surprised to meet someone who did not have professional or extensive experience in tribunal/court work yet was still able to properly and efficiently deal with tenancy eviction and bond disposal procedures.

So I agree with the earlier PMs posting in this thread - you don't know what you don't know, and if you think PMing is just about the easy times, then you could be in for a rough ride.

 

Yet your advice in your original post was exactly the opposite. No PM would call the police for rent arrears as there is actually a proper and formal process for this if that is what you genuinely suspect - and if you don't and fraudulently use the police for rent arrears then the arrears will become the least of your worries.

No, you cannot show up without an entry notice and ask for rent as that would likely be deemed harrassment if the tenant issues a breach notice and it ended up in the tribunal (yes, this happens and it's not my "aggressive" language). As you know the rules better than most agents then you already know all of this which is why I'm confused you're suggesting what are essentially illegal methods.

A tenant who does the runner is actually one of the easier forms of problem to deal with from an insurance perspective - it's tenants who stay but refuse to pay that create the issues.

I'm not suggesting it can't be done for a single property in close proximity to the landlord who has plenty of time and at least the inclination to understand the act (which it appears you do). For most people, and definitely for interstate investors, the realities don't match the ideals when it comes to property management and most investors who attempt it unfortunately usually learn the hard way.

 

We self manage 2 of our ips and that's because we've had those tenants for years and they've never created a single problem. We had an agent managing them but they were so easy it was a total waste of money on fees. I'd always try tenants out with an agent first. Even a sniff of bad attitude or payment issues and I wouldn't dream of self managing them.

 

Good work. It isn't rocket science and if something hard comes up you just have to deal with it. At some point it might make sense to use a PM - I self managed for a while when it suited me and to be honest it was the right thing for the time.

One tip I would have is that ALL occupants need to be on the lease at ALL times.

 

I'm not going to argue with you which seems like what you want.
I have successfully managed for over a decade, 5 properties, 3 of which are over 300klm away, and have had tenants who think they are smart and won't pay. We have had all types and dealt with them by the book including calling the police about one who they confirmed was in fact in custody. Hence not responding. Also had to break in to one property and take back possession after following the guidelines and advice from Dept Fair Trading.
There are procedures for every situation. I'm not contradicting anything, you asked a generic question with which I answered with several options that might cover different aspects or outcomes from a tenancy gone wrong.

In closing, it has been far far easier to self manage than it ever was using an agent. We found them totally out of their depth, inefficient, and downright lazy.
I agree with another poster above that we have consistently out performed market rent as well, and saved a massive amount of commission. It can be done and as far as I'm concerned anyone can do it if they have the desire to do so and do it as well if not better than most agents. The resources are there and experience comes from, yes you guessed it, experience. I'm pretty sure agents are not born with it.

 

After I sacked the PM I contacted the administrators of organizations of major employers. One house was immediately leased at 3 times what the useless agent said was possible. They where very happy ,it saved the employer a fortune who previously had to pay for motels and had problems at times when there where no Vacancies, and it was cheaper and easier for them to attract employees including accommodation in the salary package. Through another 2 organization I was contacted by by the guy responsible for recruiting and finding accommodation for employees, he selected the cream from around the world and his biggest problem was finding accommodation he had plenty of applicants. Now I get many queries from word of mouth spread from developing networks,the work place and tenants overseas contacts. Recently been getting contacts from people using facebook. I get enquires from Roomlala but haven't liked the tone they use so haven't leased to them. I just do the condition report when the tenant leaves or send a friend to do it.The new one is usually moving in at the same time so I am there to check them out, pick them up from the airport or train station and help them get orientated, buy their groceries, show them walking short cuts and how to get transport most of them are from OS some are knaive as they have had maids do everything for them. For the bond just fill in the form with the tenants banking details asking that the bond be returned. I just use yellow pages to find tradesmen if the seem genuine honest and reasonable I get them again. I have a good plumber who addresses a problem in hours just ring him up or leave a message, jobs done just pay the bill when it comes. No never listed a property. Just take the emails and say yay, when there is a vacancy.

 

If your properties are in Victoria, look at getting RACV emergency home assist. This will take care of all the critical call outs for repairs. Not only essential for self managers, I have it for my agent managed properties too.

 

Yes, I am thinking the same thing, it should not be that hard, of course, I am still a baby on all this but as you did mate since 16 years ago getting and getting more knowledge you become an expert. I am sooo happy with all your advice even the pretty negative one. they are sooo useful

 

Hey mate, I am sorry for being a bit ignorant but what you mean by all the occupants need to be on the lease at all times?

 

Mate, I like your attitude you make it soo simply. I like it. So another question with condition report do you follow the legal copy from consumer affairs and add some photos of the property? what I did was I followed the copy from consumer affairs and send a copy of it to the tenants with photos ( I am pretty good at Microsoft office btw) they signed it and done, but how do you find someone else to do so? do you contact a friend to follow the original with the condition of the house?

 

^^^ this,
I'm a professional at my field. And do well in it.
I'm not a professional in the area of tenant law - and so I pay someone else to do it, especially when just for the sake of a few % of rent.
The fact that some of these PMs have waiting lists or a greater contact breadth is an added bonus. (Eg. Potentially just about to have my mountains property locked into a lease before I even advertised it).

Pick your PM wisely, there is good and bad in all fields. Referrals from trusted friends are one of the best ways.

Or if you have more time on your hands than I do, then go nuts! But on a time/money basis for me, it makes sense to go with the pros.

 

The scenario is where there are unrelated occupants - share house, flat mates etc.

It is more straightforward if all occupants have "skin in the game" and are named on the lease. They all understand their joint responsibilities - and they are jointly accountable for any damage etc.

 

Thank everyone for your answer. At the moment, I am using an app, that some guys are developing in Melbourne about Property Management by yourself. So far so good. It's helped me to handle the contract, take rents, find tradesmen, run inspections and so on. It is very interesting, but it is still on development stage.

 

I think self management comes down to your own personality. I am type A, perfectionist with a background in systems, procedures and policies, so managing my properties is a walk in the park. Put my brother in the same situation - chaos.

If you are good at putting systems in place, following up on people and being pragmatic about monetary decisions you can do it. If you worry and stress and avoid conflict, then maybe give it to a property manager who might be marginally better.

I would recommend giving it a go if you feel you have the managing skills. Obviously, the more properties you get, you can make a decision as to whether it's worth your time.

- I set up reminder dates to manage contract renewal, inspections etc.
- I initially used the trades that were mentioned in the original contract when I bought the properties but over time I've developed a list of my own trades I use now
- I set my tax return up in excel and update the figures each month along with projections so I can see what my end of year tax will be

I've had 4 different tenants over time. My 2 current tenants are excellent. My first 2 tenants weren't horrible but required some "managing" at the end of their contract. Keep your cool and don't take problems personally and you should be ok. And if you're not ok, then just move to a property manager.

 

Hey Alex,

This app sounds interesting. Do you mind if I ask the name?
Would love to look into it a bit further.

Cheers

 

you can also call on a property manager to do specific one off things like represent you at tribunal if things get out of hand.

 

There used to be a book for sale in news agencies (in WA at least) that was a guide to self managing a rental property. I did buy a copy years a go when I self managed and it was really quiet helpful and concise. It was in the early 2000 so wouldn't be applicable today as the information will be available online and some.

Have also sen people use a PM to source a tenant and set up the lease etc and then hand back to the owner.

 

This is how we do it - mainly for the ease of access to databases like TICA etc. We still make the final decision once the PM puts applicants forward.

Not all PM agencies will do it though, so you have to do your research.