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Common Mistakes for DIY Property Managers

Managing your own property instead of using a professional property manager can save you 5-9% of your weekly income, but you’ll need to be aware of the legal implications, tenancy legislation and paper work to avoid the pitfalls and common mistakes.

1. Sourcing and Placing Tenants

Professional property managers usually have access to potential tenants which come through their website or office and you might not have access to.

The best thing you can do it place it in as many online websites and newspapers in your area as you can to maximise your chances of find a good tenant.

Many DIY property managers fail to adequately check a tenant’s history.

Tenants inquiring about renting your property may have a bad rental history and have chosen your listing with the expectation that you won’t look into their history unlike a professional property manager.

2. No Lease Contract

A lease contract is legally enforceable and contains information on the agreement between the tenant and property manager.

This includes the amount of rent to pay, length of the lease and the condition the property should be left in upon vacating.

3. Not Asking for a Bond

A bond is security deposit which is held by the property manager in the event that the tenant causes damage to the property or fails to pay all the rent owed by the time they vacate.

4. Not Filling Out a Condition Report

The condition report is to describe the condition of the property and the contents within. It is for the protection of both tenant and property manager.

5. Not Complying With Tenancy Laws

Each state has different tenancy laws. If you don’t comply with them you may be issued fines.

If you’re not interested in keeping up to date with your legal obligations or treating property management as a job instead of a hobby, then hiring a property manager is probably the right option for you.

You’ll get a professional service and the fee is tax deductible.

Learn more about pros and cons of hiring a property manager or doing it yourself in this blog post.

Real Estate Investar Editor
Real Estate Investar Editor
Real Estate Investar provides intelligent software, tools and data to help you save time and make money in the residential property investment market.

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