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One of the most important decisions to make when you buy an investment property is whether to appoint a professional property manager or manage the property yourself.

More than three quarters (77%) of landlords have their properties professionally managed by an agent, or have done so in the past, according to The Australian Landlords Panel 2012.
Both options needed to be carefully considered before making a final decision that is right for you.
Do-it-yourself property management can appeal to some investors, who may see it as an easy way to save money.
However, managing an investment property involves a time commitment that can significantly outweigh the cost.
Self-managing landlords will need to find the time to screen tenants, conduct regular property inspections, ensure rent is being paid on time and be ‘on call’ to attend to maintenance issues.
<a href="residential/landlords/" target="_blank">Landlords</a> who fall behind in these tasks may find themselves in hot water. For example, if a tenant is damaging the property and regular inspections are not held, the landlord could be faced with mounting repair bills.
Likewise, if maintenance issues aren’t attended to promptly and the tenant injures themselves as a result, the landlord could find themselves exposed to a costly legal liability claim.
The Australian Landlords Panel 2012 study revealed that landlords received higher rental yields and profits when a property manager was used, and that they generally had better investment experiences.
Property managers can provide landlords with risk management benefits and potentially minimise loss for the landlord if an issue arose.
Property managers are able to conduct regular property inspections to identify maintenance issues, ensure the tenant is looking after the property and, if required, liaise with appropriate tradespeople as soon as possible to address any problems.
They also have systems and processes in place to find and screen prospective tenants, and have access to databases that list tenants with a history of defaulting on rental payments, damaging property and eviction.
Property managers can ensure the correct paperwork is in place, collect the rent, monitor arrears, form a professional relationship with the tenant and regularly liaise with them.
If a dispute arises with the tenant, they will be familiar with the relevant legislation and are therefore able to follow the correct procedures to help resolve the problem as quickly as possible.
For example, if a tenant falls behind in their rent, a property manager can ensure the proper notices are issued to the tenant within the required timeframes.
This is helpful if the dispute ends up in court and, if the landlord has landlord insurance in place, can also assist with the payment of loss of rent claims.
Regardless of what option property investors chose, a specialised form of landlord insurance was a must."Landlord insurance is designed to help protect investors from many of the risks associated with owning a rental property.
These include malicious damage by tenants, accidental damage, legal liability and loss of rental income if a tenant absconds or leaves a property unable to be re-let while damage is repaired.
It can also provide peace of mind if the unforeseen should occur, as well as ease a landlord’s concerns about receiving regular rental payments.
Even the most fastidious tenant is able to damage a property, whether accidental or otherwise.
This can be extremely costly for the landlord in terms of repairs and the loss of rental income.
The Australian Landlords Panel 2012 study found that 81% of landlords who employ a professional property manager had landlord insurance cover. However, only 54% of landlords who self manage their properties had a landlord insurance policy.
Uninsured landlords really need to think about how they would manage financially if they were faced with thousands of dollars worth of damage to their rental property, or were unable to re-let their property while repairs were being made.
Carolyn Majda is insurance manager at <a target="_blank" href="https://terrischeer.com.au/">Terri Scheer</a>
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Should you manage your own investment property? Carolyn Majda

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Putting a rental property on the market can be a disruptive time for tenants.
Open inspections, potential buyers driving by and regular contact from the selling agent to arrange further inspections can significantly interrupt your tenant’s daily routines.
However, waiting for the lease to expire before selling a property is not always an option.
Maintaining a positive relationship with your tenant can help to ensure that they remain cooperative throughout the sale process.
If you are looking to sell your rental property, your tenant’s lease should be the priority.
This can contribute to a smooth and hassle-free sale and reduce the likelihood of the tenant causing malicious damage to the property if they feel as though they have been mistreated.
Tenants who respect the landlord and the property are likely to ensure it is well maintained and tidy for open inspections, which can help to attract possible buyers.
A tenanted property that is clearly well looked after can also be an attractive proposition for potential investors. If they are the successful buyers, they may look to keep the tenants rather than trying to find new ones.
How you manage the situation and what you can request from the tenant depends on the lease agreement that was signed by you and the tenant at the beginning of the tenancy.
If the lease is a fixed term agreement, you must allow the tenant to remain in the property until the end date stated on the agreement.
However, if you would like them to vacate the property prior to this date, you can try to negotiate with them.
 
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If the tenant is on a periodic lease, you are entitled to end the agreement.
The termination notice period and requirements vary from state to state and according to the tenancy agreement, so make sure you are familiar with these details.
It is therefore a good idea to ensure any periodic lease agreement you present to tenants at the beginning of a lease outlines what would happen if you wish to sell the property so they are aware of the process prior to entering the agreement.
There are many things landlords can do to maintain a positive relationship with their tenant while selling their rental property.
Regardless of the type of agreement you and the tenant entered into, you are required to issue the tenant with written notice to inform them of your intention to sell the property before the property is listed for sale.
Giving the tenant as much notice as possible regarding the property being placed on the market will allow them time to plan for the situation and, if necessary, relocate.
Passing as much information as possible from the selling agent onto the tenant and acting as a go-between for each party will reduce the likelihood of surprises down the track.
The selling agent must discuss open inspection times with the tenant and seek their permission to use photographs that contain any of their possessions in marketing materials.
You may wish to ensure that the tenant is happy with the arrangement and that the selling agent obtained the agreement in writing.
If the property is nearly due for a routine property inspection prior to being put on the market, you may also wish to bring the date forward and conduct it before open inspections commence.
This will allow you to identify and action any maintenance issues prior to the property going on the market and limit interruptions for the tenant while the property is up for sale.
Once the property has been sold, it can be a nice gesture to offer your tenants an excellent reference that they could use to apply for their next rental property.
Carolyn Majda is insurance manager at landlord insurance specialist<a target="_blank" href="https://terrischeer.com.au/"> Terri Scheer.</a>
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Your tenants should be your top priority if you are selling your investment property

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A tenant can make or break a landlord’s experience of owning a rental property. 
Finding good tenants and keeping them happy is one of the best investments a landlord can make. 
Sourcing good tenants is one of the most important tasks for landlords who manage their own investment properties. 
By ensuring they have a positive experience while living at your property, they may be more likely to pay their rent on time, stay in your property longer and treat it as if it were their own. 
Here are some tips to find and hold on to great tenants: 
Think about the type of tenant you want to attract 
Keeping a good tenant happy begins before you’ve even purchased your rental property. 
When choosing a property to invest in, think about the tenant demographic you want to attract, for example a family, sole tenant or couple, and choose a home that is likely to appeal to them.
Properties that are close to good schools, shops and public transport are likely to be well sought after and may give you a larger pool of prospective tenants from which to choose. 
Keep up appearances 
No one wants to live in a property that has stained carpets and marked walls. A home that is poorly presented by the landlord may deter good tenants from applying to rent your property in the first instance, and be poorly cared for by the successful tenant. 
Similarly, a property that requires as little maintenance as possible will make life much easier for both tenants and landlords as it will minimise the effort and cost involved in the upkeep of the home once the tenant has moved in. 
Presenting a clean, tidy, low-maintenance and well cared for property will encourage tenants to treat the property as if it were their own. 
Generate interest 
In order to generate interest in the lease of your property, landlords may be required to place advertisements in newspapers, on various real estate websites and on online noticeboards. The advertisement should include information about the property, when open inspections are scheduled for, and the lease application deadline.
It is a good idea to arrange open inspections at times that would be convenient to the type of tenant you want to attract. 
For example, if you would like to attract young professionals, arrange the open inspection after working hours so it is easy for people to attend. 
At the open inspection, ensure you talk with as many potential tenants as possible so you can put faces to names when processing lease applications later on. 
Screen tenants 
After the lease application deadline has closed, landlords will be required to screen potential tenants. 
The first step is to contact the employer of your preferred tenant to confirm that the information they have provided regarding their position, length of employment and salary is correct. 
It is also important to contact their previous landlord to discuss any issues that arose during their last tenancy, as well as the personal referees listed in their application. 
If an applicant is applying for his or her first lease and has no previous record of renting, speaking with responsible adults such as school teachers may suffice. 
If you are a member of a specific real estate industry association, you may have access to a tenant database which you can also use to search the names of your shortlisted potential tenants to find out whether there are any recorded issues with previous leases. 
Attend to maintenance issues promptly 
Once you have selected your tenant and they have moved into the property, ensure you make every effort to attend to any maintenance issues promptly. 
It can be quite frustrating for tenants if their requests for repairs go unanswered, and if they aren’t getting the attention they deserve they may begin to question their commitment to your property and become more careless with it. 
Injury or loss resulting from a safety hazard that has not been attended to might also give rise to a costly legal liability claim. 
Responding to maintenance issues in a timely manner signals to your tenant that you care about the property and value their concern for its condition. This can contribute to creating a positive renting experience for your tenant. 
Even if you do find good tenants, it is important to not take them for granted and rely on them to make sure nothing goes wrong. 
Even the best tenant can accidentally damage a property or lose his or her job and be unable to pay rent. 
Every landlord should have a tailored landlord insurance policy that covers both malicious and accidental damage, legal liability and loss of rental income. 
Landlords can also enhance risk management by appointing a property manager. 
The time and effort that property managers can save landlords as well as the experience and knowledge they provide can be well worth the cost for their services. 
A property manager can also help to find tenants, ensure the correct paperwork is in place, assist landlords to form a professional relationship with their tenant, collect the rent, conduct property inspections and liaise with the tenant on behalf of the landlord. 
Carolyn Majda is insurance manager at landlord insurance specialist <a href="https://terrischeer.com.au/" target="_blank">Terri Scheer Insurance.</a>
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Carolyn Majda

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