Renters enjoy not needing to worry about insurance for their home, but a lot of...
DIY Rental Management: Running Rental Property Long-term
When do you start to relax and earn a passive rental income? If you’ve invested in a rental property and you’ve decide to go it alone managing it, there is not going to be much “passive” in the income you receive. Once you’ve gone through the steps and procedures necessary to attract a tenant, and seen them safely into your rental premises, you might think the worst is over. Baxton Property Management in Hobart, one of Tasmania’s top specialists in the field, points out what still lies in store for you.
There are no working hours for problems
Managing your own rental property (and worse still, properties) could end up taking a lot of your time and energy – and at the worst of times. Demand on you comes in the form of severe crises that somehow seem to happen at the worst of times. Then there are the less serious problems – things that may even seem irrelevant and irritating when the tenant’s call wakes you during a hard day’s night.
But in between these calls for help, there are a myriad of other queries, complaints and routine chores. After a while you may come to the conclusion that there is truth in the saying that nothing comes for free, and that it especially applies when it comes to rentals.
What will you have to deal with as a DIY manager?
- Collecting and controlling rent payments: Rent is at the core of your rental income, and can make the world of difference to your ROI. Ensuring that income keeps flowing in, can take a good deal of time.
- Carrying out condition reports. These reports are carried out at the start, and again at the end of a tenancy agreement. The reports, which have to be signed by both parties, act as points of reference. They will show whether or not the tenant has complied with their legal obligation to keep the rental premises in the same condition it was in when they first occupied it, subject to reasonable wear and tear. And these reports impact on the tenant’s ability to claim back the security bond.
- Responding to tenant questions, complaints and repair requests: These can be the most difficult of all, and happen with the worst of timing. You will have to learn to look at them from the perspective that these issues and questions are very real and important to your tenants’ lives, if not to yours. And by renting your property to them, you will have to accept having your life invaded by their needs.
- Organizing tradespeople: When repairs are necessary to fulfil your obligations as an owner, you will have to contract the relevant tradespeople, negotiate projects, study quotes and inspect the completed work for quality and efficacy.
- Regularly inspecting the property: Regular inspections will keep you up-to-date on the condition of the property. On the one hand, you will have a chance to check that normal wear and tear as the building ages is not nearing a point where it could cause structural damage to the property. You will also be able to ensure that your tenant is taking good care of the premises.
- Enforcing the lease before a tribunal, if necessary: Dealing with disputes can take time and cost you money well as putting a lot of personal stress on you.
- Having to terminate leases and evict tenants: You hope it won’t happen, but there are likely to be times when it will be necessary for you to terminate a lease and evict the tenant. That could be because of damage to the property that could lead to injury, or for arrears in rent. Whatever the reason for it the process takes time and paperwork.
- Understanding legal requirements and documentation: You will need to become totally familiar with your own and your tenants’ legal rights and responsibilities. Keeping appropriate paperwork and documents on all communications and agreements is also vital. Should a dispute arise you will then have a detailed record of all related communication, transactions and other documentation. The tenancy agreement, bond documents and records of dispute resolutions, if any, are particularly important.
While managing one rental property demands a good deal of your time and patience, the load becomes exponentially greater if you decide to invest in a second property, or more. There’s no relief in numbers in this business, unless you decide to make use of professional property managers. Baxton Property Management in Hobart has honed their services over 100 years of collective experience in this field. To learn more about their services, visit their website.
- DIY Property Management: When Things go Wrong at the Rental
- DIY Property Management: You’ve found the tenant. What’s next?
We hope you enjoyed this article
The information contained in this article is based on the authors opinion only and is of a general nature which is not indicative of future results or events and does not consider your personal situation or particular needs. Professional advice should always be sought relevant to your circumstances.
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