What do I need to know before self-managing my rental property?
You’ve worked hard to secure your investment property, and now it’s time to decide how you should manage it. There are a number of things to consider before self-managing your property, but before you do, it’s important to get your priorities in check.
- I want to maximise the return on my investment property.
- I want to be in-charge of major decisions about my property.
Once we know what we want, it’s easier to decide what steps to take.
What are my obligations as a landlord?
- You will need to provide your tenant with a guide or checklist. This will support them by providing a range of helpful items that they should know or understand before signing a lease.
- You will need to create and sign a lease agreement to be given to the tenant
- You will need to lodge a bond between you and your tenant. More information on lodging a bond can be found here.
- You will need to prepare and sign a condition report.
- To provide a clean property that is ready for the tenant as per the lease commencement date.
- Issue each tenant their own set of keys.
- Ability to respond to maintenance requests by tenants, with reliable trade workers at hand.
How can I maximise the return on my investment property?
One of the most exciting parts about renting out your own property is the ability to control expenses and ultimately the return on your investment. Hiring a property manager is one option, but for those looking to cut management fees and stay in control of your property, self-managing your private property is the way to go. Taking on the challenge of managing a property yourself can be incredibly rewarding and you’ll notice it immediately.
Hiring a property manager will generally cost you between 7-11% of your monthly rental income. On top of that, they usually charge additional fees. If you’re interested in saving where you can, managing your own property will allow you to keep all of that monthly income.
What’s the best way to action these tips?
Use RentBetter! A number of management tasks are fairly mundane, repetitive and straight forward. RentBetter have worked very hard to automate these tasks and provide you with a better way to find and manage tenants. With RentBetter, once you onboard your tenant, a payment schedule is created for both owner and tenant where you can see payment dates and a ledger based on the history of payments. If a payment is missed or fails for some reason, notifications and alerts are sent to owners and tenants to take action quickly.