Congratulations! You are now the owner of a brand new, shiny rental, and now you’re excited to get things going. It’s likely you’ve overspent your budget, or perhaps you need to take care of a few renovations before your tenant can move in, so you figure you don’t need a property manager, you can save money and do it yourself. How hard can it be?
Most landlords assume the toughest part will be dealing with the day-to-day side of things: Tenants not paying rent, phone calls in the middle of the night, having conflicts with neighbours. For sure, those things can be frustrating, but the hardest part that most DIY Property Managers don’t even think about is the legal side of things. If you’re not familiar with tenancy legislation and getting the right paperwork sorted out, you may find yourself in trouble.
There are lots of areas to look out for, but here are a few common problems that may arise with new DIY Property Managers.
Waiving the Lease
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. What it should at least cover is the length of the lease, how much rent is due and when the tenant will pay it, as well as the condition the property is currently in and how it should be when vacating.
Not asking for a Bond
Not handling the bond correctly, or worse, not even asking for one at all, can set you up for heartache down the line. Asking for a bond and putting it in your bank account is not the correct way to deal with it. What will you do if your tenant damages your property and you have no bond to cover the cost?
Be aware of Local Tenancy Laws
How much do you understand about tenancy law in your area? Not knowing tenancy legislation is not a valid defense, so you may receive a fine if you don’t comply with all the rules and regulations. So make sure you understand the law in detail, or you get help in this area.
Entering the Property
Most new landlords don’t realise that 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 manage your own rental? It is a lot more involved than most people think. Contact us at True Property Management to find out how we can manage your property for you and take all the legal stress off your hands.