Be Careful of DIY Rental Management
Trying to decide whether you should work with a rental management company or handle the process on your own? What you need to ask yourself is how many properties are you currently trying to manage, do you have the correct financial management systems in place, how much time do you have to dedicate to those properties, and do you have efficient and reliable maintenance resources in place when problems arise?
Hiring a professional property management company is an investment, but having the right company in place will end up paying for itself by saving you time, money, and stress. Whilst there is no way to guarantee a problem free experience, there is little doubt in our experience that many of the inherent risks involved in the rental process can be mitigated by professional management. There is also a growing trend where Tenants are requesting managed leases to ensure that their experience throughout the rental period is as well managed and smooth as possible. Tenants are often viewed as the potential problem, but in our experience we have also had to deal with troublesome landlords. There are therefore a number of benefits, including various long-term advantages that landlords should consider when deciding if professional property management is best for their investment properties. Below are some key considerations:
- By screening and credit vetting tenants thoroughly using trusted platforms, the risk of non-payment can be dramatically reduced. This means long-term tenants, more efficient rent collection and a reduced potential of legal issues.
- By conducting a thorough in-going, mid-term and out-going property inspection using a cloud-based photographic recording platform, the risk of arguments over property condition and damage is greatly reduced.
- Having transparency when it comes to the management of utilities accounts and invoicing is also vital. Providing professional statements and using an efficient accounting system is critical in maintaining a paper trail and protecting all parties.
- It is a legal requirement that all deposits are placed in an interest bearing account. Having an independent third party manage the deposit in an audited Trust Account not only sees a financial benefit, but also means that the deposit is safeguarded until any potential disputes are resolved at the end of the rental term.
Ultimately, by maintaining good relationships between a Landlord and Tenant, and holding both parties accountable for their respective responsibilities, the rental experience can be improved for all concerned.
For advice or further information on Rental Management Options that Seeff North Coast offer, call Mark Johnson at Seeff North Coast on Tel 032 586 0170 or Cell: 082 600 628
Author: Tim Johnson