The risks of DIY property management
If you have a Mount Isa rental property, one of the decisions you need to make is how to manage it. You have two options: 1) do it yourself (DIY) or 2) hire a professional property manager. It’s important to understand the DIY risks before you decide which way to go.
Mount Isa rental property management risks
If you go down this path, you could face any of the following risks:
- not being able to quickly and easily source good quality tenants. These are tenants who will always pay their rent on time and look after your property. Delays in sourcing good tenants can cost you money in the long run by exposing you to longer vacancy periods or to poor quality tenants who won’t always make their rent payments on time (or who may not take good care of your property).
- the need to prepare your own lease documentation and to negotiate lease terms and conditions with your tenants.
- tenants potentially contacting you directly about any property issue 24/7.
- needing to source your own tradespeople for any necessary repairs and maintenance work.
- the hassle of conducting regular property inspections yourself to make sure your property is being well looked after by your tenants
- having to communicate any property issues directly to your tenants, including dealing with any disputes yourself (such as late or unpaid rent, poor property maintenance or damage, and even potential eviction).
- unintentional non-compliance with your legal obligations due to a lack of experience or awareness of all your landlord responsibilities.
You need to weigh up whether it’s worth exposing yourself to these risks.
The benefits of professional property management
Using the services of a professional manager can provide you with a range of benefits, including:
- ensuring your legal compliance as a landlord.
- sourcing and screening potential tenants for your property.
- arranging and attending all potential tenant inspections.
- preparing your tenant lease documentation.
- ensuring your tenants pay their rent on time.
- communicating with your tenants on your behalf.
- conducting regular inspections to ensure that your tenants are looking after your property.
- paying all your ongoing property expenses on your behalf (for example, council rates and insurance).
- arranging quality tradespeople to carry out any necessary repairs and maintenance work that you approve.
- helping to resolve any tenant disputes before they escalate.
- reviewing your rent rate prior to lease renewal to help you maximise your rental property return.
In short, using a professional property management service minimises your risk, stress and hassle.
Should you risk managing your own Mt Isa rental property?
This depends on how much rental property management knowledge and experience you have, as well as how much time you have on your hands. Property management tasks can be time-consuming and complex.
You do pay for using the service of a professional property manager, but that fee is fully tax-deductible. Ultimately, the benefits a property manager provides should save you time and hassle to outweigh the cost, including giving you the peace of mind that you are complying with all your legal obligations.
Many tenants also prefer dealing with a property manager rather than a landlord directly, so you may limit your number of potential tenant applicants if you take the DIY approach.
If you’re thinking about buying, selling, renting or leasing any Mt Isa property, or you need your property professionally managed, then contact our team today for an obligation-free chat!
We’d be happy to provide you with advice and to answer any property questions you have.