You have purchased a new rental and are excited to get going with it. Maybe you have spent more than you expected, or you needed to carry some maintenance before tenants move in.
So you figure you don’t need a property manager, you can save money and do it all yourself.
Most landlords assume the hardest part will be dealing with the day-to-day side of things: Tenants not paying rent. Phone calls in the middle of the night. Not abiding by the rules etc. Yes, they can be frustrating, but I would argue, however, that the toughest part for any DIY Property Manager is the legal side of things. If you are not 100% up to speed on tenancy legislation and the paperwork required, you may find yourself in some unwanted hot water.
There are lots of areas to look out for, but here are a few common problems that may arise with new DIY Property Managers.
A handshake is not a legal agreement. You need to have a legally binding contract that outlines who is responsible for what. Outline what you as the landlord is responsible for and what the tenant is responsible for. It should at least cover is the length of the lease, how much rent is to be paid and how often, as well as details reagarding the condition the property is currently in and what it should be returned to upon vacating.
Not asking for a bond or not handing the bond correctly can set you up for heartache down the line. Asking for a bond and putting it in your bank account is big no-no. Along with not asking for a bond at all. What will you do if your tenant damages your property and you have no bond to correct the damage?
How much do you understand about tenancy law in your area? Not understanding tenancy legislation is not a valid defense, so if you may be fined if you don’t comply with all the rules and regulations. So make sure you understand the law in detail, or you have some help here.
Entering the Property
Even though you own the property, your tenants live there and they have rights. You have to give them 24 hours notice before going there.
Are you ready to be your own Property Manager? It is a lot more involved than most people think.
Have you every tried to manage your own property? How did it work out?