Problems are always there in property management. It may sound so easy at first but it won’t anymore once you start encountering big problems along with it.
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
1 Do I understand tenancy legislation?
2 Am I organised and a great record-keeper?
3 Do I know going rates in the market, and have the confidence to negotiate regular rent increases?
4 Do I have access to quality, reliable trades people?
5 Am I available to supervise trades people at short notice, if required?
6 Do I feel comfortable with the tenant having my phone number, and effectively being on call to them 24 hours a day?
7 How will I verify that tenants are who they claim to be?
8 How will I find out if tenants have previously been evicted or have a poor history?
9 Do I know the warning signs for a clandestine drug laboratory or marijuana grow house?
10 Am I organised and assertive enough to chase up late rent immediately?
11 What am I going to do to manage the tenancy if I go overseas or on holiday?
12 Could I bring myself to evict a family, or a person who has fallen on hard times?
13 Do I have the time, expertise and confidence to go to a tribunal and publicly argue my case, if necessary?
14 Will my landlord insurer cover me if I self-manage – and, if so, will the premium rise as a result?
15 How much will I save, after tax, by managing my property myself?
16 Is my time worth more, or better spent, on other priorities, once the potential stress is taken into account?
Source: Property Observer
It’s just an amount of readiness and expecting for possibilities. These questions should be asked first if you are can really pull property management off alone by yourself.
More Ipswich suburbs to be switched on by the NBN
Queensland Says No New Taxes on Foreign Property Buyers in Bjelke Petersen-like Strategy
The Queensland government has ruled out introducing new taxes on foreign buyers of residential real estate.
They are the only state that actually monitors foreign investment, so were in the box seat to implement such a tax regime.
The rejection comes after the populist Victoria Labor government’s recent budget unveiled a new tax regime that will seek to tax foreign buyers and foreign owners.
Queensland has vowed not to follow Victoria’s lead and introduce any new taxes on foreign property investors.
Treasurer Curtis Pitt said Queensland welcomed foreign property investment.
“We’re ruling out any stamp duty surcharges for foreign investors who purchase a house in Queensland,” said Pitt.
“We’re also ruling out any land tax surcharge for foreign investors in this state.”
The Victorian state budget, revealed on Tuesday, included a 3%t stamp duty surcharge for homes from July and land tax increases of 0.5% from 2016 for offshore-based investors.
News Ltd reported Queensland executive director of the Property Council, Chris Mountford saying the action will strengthen Queensland’s position on the global investment map.
“In particular it creates a compelling case to invest in Queensland over Victoria.”
Nothing new for Queensland as that was how former premier Joh Bjelke Petersen saw the state into an upswing when Queensland didn’t have death duties like other states.
It was in 1977 when the Premier of Queensland Joh Bjelke Petersen abolished death duties and a wave of Australia’s elderly headed towards the Gold Coast with the high rise following as dying in Queensland became a tax avoidance scheme and Surfers Paradise became a retirement haven.
By JONATHAN CHANCELLOR via propertyobserver.com.au
Tenants – Would I lie to you?
Unpaid rent, property damage, pets – there are some tall tales told about these subjects, just to mention a few.
Messenger’s real estate writers contacted dozens of property managers to ask for the lines they hear most often from tenants, which make their eyes roll.
We won’t name names, but a list of their responses is to the right.
Many of them, such as, “The house is better now than when I moved in” and “The garden used to be immaculate”, relate to the state of a home.
Real Estate Institute of South Australia spokeswoman Lisa Stewart says these sorts of issues account for most rental-related calls to REISA’s query line as well as the residential tenancies tribunal.
“My advice would be for a property manager, tenant and landlord to do their first and final inspections together wherever possible,” she says.
“Everyone needs to be agreed on the state of a home from the start.”
She adds it is a good idea to take photos of any property damage or marks on the wall before a tenant moves into a home to keep as a reference point.
“It’s also imperative for all parties to go read through the initial inspection list very carefully, and make sure every potential problem is documented.”
Lines and lies to do with pets and rental payment, such as, “I don’t have a dog (despite pet fur all over the house)” and “I paid my rent but it went into the wrong account” also featured highly on the list of property managers’ most-heard lines.
Ms Stewart says honesty is by far the best policy.
“If you are having difficulty with your cash flow or you want to get a pet, talk to your property manager as soon as possible,” she says.
“In general, if you’re a good tenant, your landlord will not want to lose you – it’s not in your interests, so talk to the property manager and they may be able to arrange pet approval.”
Ms Stewart says gardening and watering are generally solely the tenant’s responsibility. So tenants usually have no cause for complaints along the line of ”I’m not watering the garden if I have to pay for it.”
Original article published at www.news.com.au by Eleanor Miller, News.com.au 22/1/2014