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How To Manage Your Rental Property Alone And Become A DIY Landlord

You might be tempted to manage your rental property alone. However, being a DIY landlord is a challenging job. You need to take into account many different things and there is a pretty steep learning curve involved.

In Australia, many landlords choose to also manage the property. If this is something you consider, always remember the things mentioned below.

Dealing With The Legislation

Australia has several legislative and legal structures that aim to protect the landlord and tenant so when you manage your rental property, you need to know them. These do vary from one state to the next. As a landlord, you have to be aware of all the relevant legislation and Acts. The best thing you can do is to finish a short property management course. Choose one that is recommended or run by the state’s Real Estate Institute.

You need to access standard documents and agreements, like bond lodgment forms and legal agreements. Disputes can always appear about lease conditions, rental payment, and even bond claims. The judge always analyses the steps taken by the landlord and whether or not they were appropriate.

As a very simple example, when you want to evict your tenant, you have to prove that you provided notices, applications, and reminders, all at the right intervals. The judge will not offer the eviction order if you do not prove such things.

Learn About Rental Collection

Rent collection stands out as one of the most important tasks of property management. The process has to be clear and always followed properly, at an exact date. If there are terms that are not clear, the tenant will be late or you will end up faced with multiple payments that are more difficult to deal with. You can make it little easier using multifamily leasing software.

Professional property managers now use direct debit when managing rent payments. This is preferred because the manager has control. An authority is signed by the tenant and rent can be directly debited from the account of the tenant, at the due date. You always know when the account is empty, which can be an advantage.

One of the most important things to know when you are a landlord is that you have to get rent paid on time and in full. If the payment is not made, start sending written reminders about due rent as soon as possible.

Based on the state, the formal proceedings to remove the tenant can start after around 14 days. Steps need to be preferred in the correct order. Also, you should never harass your tenant and keep records. There are usually some limits when it comes to how many reminders can be sent.

Leasing Properties

There will be a time when the property is vacant. This is when new tenants need to be found. Based on the state, tenants need to provide notice about vacating. It is usually 2 to 4 weeks.

When you want to lease your property as a way to manage your rental property, several steps need to be followed:

  • Advertising – You want to be listed on realestate.com.au and domain.com.au because these are the highest authority directories. Also, you should practice writing the advertisements. Nowadays, advertising online is much more effective than anything else.
  • Receiving enquiries – You have to be accessible and the entire process needs to be handled professionally.
  • Tenant screening – The tenant screening process needs to be thorough. It is not difficult to put the tenant on your property. However, it can be quite difficult to get the tenant out. The screening process lets you choose the best tenants, those who can be trusted.
  • Acceptance – After you choose the tenant, you have to quickly approve of him/her. Some other landlord might and you may lose someone great.

Property Inspections

You have to be sure that the property asset will be properly looked after. In every single Australian state, there are specific rules about the number of inspections you can do per year. There are also clear guidelines about the process that has to be followed. Usually, you can perform an inspection 3 months after the occupancy. Then, you can carry out another one after 6 to 12 months.

Always respect the state legislation regarding inspections. This is especially the case when it comes to the entry process, notifications, and frequencies.

Rent Increases And Appraisals

According to Alison Duffy, an experienced buyer agent in Canberra, ACT, you should always be up to date with everything happening in the property area. Also, you should only increase the rents based on lease terms and state legislation. You might also want to consider upgrades that can increase rent. 

Property managers have to determine property market rent. Markets will sometimes be stronger or weaker. Choosing the correct rate helps you make more money. It is a good idea to seriously consider hiring an agent. He can get you thousands more every year as they fully understand the real estate market and the correct rents.

Maintenance And Repairs

Many DIY landlords do not understand the rights a tenant has when referring to maintenance and repairs. This is especially the case when thinking about urgent repairs, based on legislation.

As an example, when toilets do not operate or hot water does not exist, tenants can consider these urgent. They will pay for the repairs themselves and then claim money back from you.

If you want to be a DIY landlord, make sure that you have the numbers of several tradespeople. They should respond to calls fast and be cost-effective. Such relationships can easily help you to save thousands of dollars in the long run.

Time And Availability

You have to be readily accessible as the DIY landlord. You also need to have the time needed to deal with the situations that appear. This can become frustrating when on holidays since you never know when something urgent has to be done. You should seriously consider a close friend or even a family member who would offer assistance whenever you are not available.

Property management is time-consuming. Usually, on a full-time schedule, you can expect to be able to deal with up to 100 properties. However, this is not a rule. If you are not experienced, it might be more difficult for you.

Record And Tax Keeping

You need support as a DIY landlord since you have to use the right systems and technology. This means you need access to a smartphone, email, the internet, electronic files, and a solid financial reporting system. If you work with a property manager, this can become simpler. The professional would be able to record everything and send you reports whenever needed.

Costs When You Manage Your Rental Property

In many cases, landlords choose the DIY option because they want to save some money. Costs are considered to be tax-deductible and they can be claimed so that you reduce taxable income. The value you get when you hire the professional property manager is high. Costs are reasonable and you should consider this option whenever you feel that the job of the landlord is too much for you.

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Adrian Cruce

Marketer by day, gamer by night, human always!

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