THE INVESTOR’S SLIP SLOP SLAP
Sometimes new investors make
the decision to manage their own investment property. After all, it
seems obvious – why pay an agent to do something as simple as banking
a rental cheque? It’s only when they start managing their own
property on a day to day basis that they realise the level of
expertise required to maximize income and minimize expenses. And when
the Investor finally hands their property over to an agent, it’s an
enormous relief. Their net income increases, they have a lot more
leisure time and they can sleep at night.
Professional managing agents
have the experience, expertise and up to date legal knowledge to
prevent problems developing. Mistakes can be costly and many
do-it-yourself investors find themselves in crisis management mode.
They end up trying to lock the stable door after the horse has
Fortunately, most people hand
over to an agent before things go wrong. They realise that they’re
reinventing the wheel and that it’s simply not cost-effective.
Properly investment managers need to be legal expert and self managed
investor’s end up spending a lot of time familiarising themselves
with tenancy legislation. Even then they worry that they haven’t
thought of everything.
Investors can also have
difficulty staying up-to-date with week-to-week fluctuations in the
rental market. It takes a lot longer for trends to become apparent to
people who are looking after just one or two properties. They do all
that work and it may still cost them financially in higher vacancies.
It’s also very had to keep a distance from demanding tenants if you
don’t have a third party to liaise with.
Another area people find
difficult is communication and arbitration. A managing agent can be
more objective and less emotional. Dialogue via a disinterested third
party minimises income reducing anger, and personality conflicts.
Even negotiating rent is
difficult for a landlord, both because of the emotional involvement
and because of lack of experience. Things like knowing what rent to
set and what are fair and reasonable repairs, can be difficult
decisions for the inexperienced. The lease is the bottom line. If the
lease is not done correctly, tenants could end up squatting or living
in the property for free.
Utilising the services of a
professional managing agent is an investor’s Slip Slop Slap….It
saves them time, maximizes rental Income and minimize risk.
For a FREE market update on
your Investment property or to find out about our Landlord
“Flat Fee” Property Management Guarantee
contact Todd Pearce or Renee Dunstan on 07 4727 2400 or