Property can be a lucrative investment but there are many significant responsibilities that come with being a property investor such as real estate management.
When deciding how to manage your property, you have to ask yourself if you will be doing it yourself or using an agent. Hands-on management can save you agent fees but you will have to learn a lot about the legal side of things. By appointing a property agent, you will have to pay for service costs but you get to have every single aspect of your investment managed by a professional. Here's a look at some of the things you will encounter should you choose to manage your property by yourself or using an agent.
Hands-on Property Management
By managing rental property yourself, you maintain direct control over your property, saving you from agent fees. However, you must be aware of the responsibilities involved. From time to time, your property will become vacant, so you will have to advertise for tenants, receive enquiries, show your investment at inspection and screen your tenants. It is important to be clear about rent payment as delays are difficult to control. Nowadays, DIY property managers use direct debit to manage rent payments.
It's true that some people do enjoy this aspect of property management but many would just rather let an agency look after everything so they can just receive the rent money at the end of the month.
You must also understand and follow the landlord tenant law to protect yourself and your tenant's rights. Familiarising yourself with rules on how much you can collect as a security deposit, when to enter premises and the process of eviction are important if you want to successfully manage your rental property. This way you avoid disputes that may arise during tenant turnover.
Appointing a Property Agent
When choosing an agent, get a list of their complete services and ask their procedures for carrying out maintenance repairs, handling complaints and terminating a tenancy. Be sure you have a full understanding of their responsibilities - that they must act in your best interest, carry out inspection reports and inventories, and ensure that all who come in for repairs are duly licensed.
It is important to know that real estate agents charge a one-off letting fee at the start of a new tenancy agreement to cover the costs of finding the tenants. They also charge on commission on the rent which will be deducted automatically. An ongoing commission rate of between seven and ten percent of the rental income is standard.
The right way to manage your rental property is all up to you. See which will work best for you so you can be sure that your property will be managed effectively.
If you are looking for real estate properties in Townsville, Maidment specialises in creating quality residential developments with plenty of investor opportunities. We are one of Queensland's most dynamic property development companies, focused on regional growth corridors. Learn more about us by visiting our website at www.maidment.com.au.