Sharon Fox-slater

<html><body>
GUEST OBSERVATION
DIY property management seems simple – and it can be – until something goes wrong.
The reality is that not everyone has the skills, time and temperament to successfully manage their own investment, particularly one of this size and scale.
With 20 year's experience in landlord insurance, I can tell you that tenancies being self-managed by investors go pear-shaped more often than assets that are managed by a professional – they are subject to more claims.
Why? Tenants with a poor record deliberately target private landlords who don’t have access to industry databases recording people who have defaulted in the past.
Also, private landlords can be slower to see the danger signs of a tenancy that’s turning sour and may fail to nip problems in the bud.
Some are too understanding for their own good, letting unpaid rent add up and being slow to initiate eviction proceedings.
It’s not always the tenant’s fault – sometimes landlords also prompt anger by failing to live up to their obligations when it comes to repairs.
Still not convinced of the value of professional property management? Ask yourself these questions before going DIY:
<ol>
<li>Do I understand tenancy legislation? </li>
<li>Am I organised and a great record-keeper? </li>
<li>Do I know going rates in the market, and have the confidence to negotiate regular rent increases? </li>
<li>Do I have access to quality, reliable trades people? </li>
<li>Am I available to supervise trades people at short notice, if required? </li>
<li>Do I feel comfortable with the tenant having my phone number, and effectively being on call to them 24 hours a day? </li>
<li>How will I verify that tenants are who they claim to be? </li>
<li>How will I find out if tenants have previously been evicted or have a poor history? </li>
<li>Do I know the warning signs for a clandestine drug laboratory or marijuana grow house? </li>
<li>Am I organised and assertive enough to chase up late rent immediately? </li>
<li>What am I going to do to manage the tenancy if I go overseas or on holiday? </li>
<li>Could I bring myself to evict a family, or a person who has fallen on hard times? </li>
<li>Do I have the time, expertise and confidence to go to a tribunal and publicly argue my case, if necessary? </li>
<li>Will my landlord insurer cover me if I self-manage – and, if so, will the premium rise as a result? </li>
<li>How much will I save, after tax, by managing my property myself? </li>
<li>Is my time worth more, or better spent, on other priorities, once the potential stress is taken into account?</li>
</ol>
Sharon Fox-Slater is general manager of <a href="https://www.rentcover.com.au/" target="_blank">RentCover </a>landlord insurance, which insures more than 120,000 tenancies around Australia, and is a division of EBM Insurance Brokers.
</body></html>

sfoxslater-oVy9VUHSz9

Should you go it alone in property management? 16 questions to ask yourself first

<html><body>
GUEST OBSERVATION
<ol>
<li>The agency which sold you the investment property is not necessarily the best to manage it – it is worth actively reviewing your choices in the local area, rather than just taking the most obvious option. </li>
<li>The person who signs you up at an agency may not manage your property. This means you have limited opportunity to assess the calibre of the people who will actually manage your hard-won asset. </li>
<li>Even if you go to a great deal of effort to select an individual property manager, it’s also vital to assess their agency as a whole. Many agencies have high rates of staff turnover but good business systems help ensure consistency regardless of which manager looks after you. </li>
<li>The best property managers do more than collect the rent and organise repairs. For example, they can alert you to the benefits offered by depreciation schedules, suggest high-return improvements and make sure you are aware of your options when it comes to insurance. </li>
<li>Property agencies should be judged on quality not just price. The advantage of a slightly lower management fee will quickly be eroded if there’s an unnecessary vacancy or a badly-prepared tribunal appearance. Don’t forget to ask how many properties each manager has to handle when comparing agencies, and whether they hold open for inspections on weekends. Examine all their ancillary fees as these can really add up. </li>
<li>While it’s important not just to focus on price when selecting an agency, it’s also worth remembering that you can negotiate – the higher end the property, the more room there usually is to manoeuvre. Those with a larger portfolio also have more power to strike a better deal. </li>
<li>Consider doing some mystery shopping before deciding on an agency. Inspect the quality of “for lease” ads and photography, checking how long it takes for calls to be returned and even turn up to an open for inspection. </li>
<li>While property managers are on “your side”, they also have a professional duty of care towards tenants and a responsibility to ensure relevant legal rules are followed. Property managers need to be able to negotiate in a firm but personable manner with tenants and landlords – so when they say you can’t make DIY electrical repairs, for example, don’t take it the wrong way! </li>
<li>Property management is not an easy job. Think twice before taking on the role yourself – poor quality tenants often target DIY landlords because they know a professional will screen them out. It’s no coincidence that the landlords in tears in current affairs television over their “trashed house” are almost always managing their property themselves. Even with professional managers, there are no guarantees but, if worst comes to worst, they are better equipped to deal with the eviction process. </li>
<li>Property managers usually have access to a network of quality, responsive tradesmen. These may not always be the cheapest in town, but have proven their ability to get the job done reliably. If the quote provided really is over the top, take the time to do some research on alternatives – and be polite in raising the matter. Set aside some of the rent you receive so that you can afford repairs. </li>
<li>Read your annual rental statements with an eye for what’s missing as well as what’s there – has money been taken out for pool maintenance, gutter clearing and the like? If not, ask why. </li>
<li>Property managers can make your investment journey easier and smoother, but the buck stops with you – it’s up to you to carefully select your property manager, respond to their queries, monitor their performance and proactively change managers if necessary.</li>
</ol>
Sharon Fox-Slater is the General Manager of EBM Insurance Brokers’ <a href="https://www.rentcover.com.au/" target="_blank">RentCover </a>landlord insurance division.
</body></html>

Sharon Fox-slater

Editor's Picks

Have something to contribute?

The latest real estate & off the plan properties & news, delivered to your inbox.

Developments

New apartments

New townhouses

News

The latest real estate & off the plan properties & news, delivered to your inbox.

Sharon Fox-slater

Editor's Picks

Receive the latest news stories to your inbox

Have something to contribute?

The latest real estate & off the plan properties & news, delivered to your inbox.

Developments

New apartments

New townhouses

News

The latest real estate & off the plan properties & news, delivered to your inbox.